Joe: I've seen at least 2 reports indicate that IBM will debut its 3.0 Gbits/in2 AMR heads (8 Gigabytes laptop disk drive) at this year's Comdex. I don't know when IBM will commercialize the 5.0 Gbits. I do think it is good for AXC and KM that IBM can take AMR all the way to 5.0 Gbits/in2. I'm curious as to what this development will do to the plans of the other integrated drive makers and head manufacturers who all seem to be planning to move to spin valve/GMR at around 3.0 Gbits/in2. Something to keep an eye on. If KM works with the 5.0 AMR heads, then that takes IBM to 6.5 - 7.0 Gbits/in2 (assuming 30-40% post-channel areal density improvement) without transitioning to Spin Valve/GMR.
RE: Bramson's letter
I'm glad to see Bramson's commitment to KM......
...Accordingly, while we remain reasonably optimistic about the prospects for keepered media, it will be necessary to generate some keepered media revenue in the reasonably near future to offset its development expense. If this does not happen, we shall probably continue to fund long-term development but at a lower rate of expenditure.....
....match the kind of pitch they are making to the scientific community....
....These phenomena will bring soft magnetic layers to all magnetic recording media in the next few years and will be important in the achievement of high BPI and TPI MR head recording systems.
www-iist.scu.edu
www-iist.scu.edu
In other words, Bramson is going to cut the non-KM R&D unless KM starts generating cash flow soon. Maxtor again represents the earliest possible source of KM earnings because I think it just makes too much sense for them to preserve their preferential pricing by following the minimum purchase requirements of the contract. Samsung, however, is probably more significant because Samsung is relying heavily on IBM to provide the advanced MR heads to expand its tiny disk drive operations. Time will tell.
Also, check out Tom Coughlin's profile and the other presentations re: the thermal stability brickwall beyond 10 Gbits/in2 (Jack Judy), thermal stability and Vertical Recording (Bruce Lairson), etc
RE: DST
"...at the beginning of the year, we introduced a new generation of 19mm, DST and DIS products with twice the capacity of their predecessors and we are currently working on a further doubling.[2x linear density] We are also considering further marketing investments and product line extensions in this area and will also consider acquisitions...."
Bramson has a Wall Street background. I'm curious as to what his plans are in the area of acquisitions. I am aware that with the volatility in the stock market, there is an increasing interest in LBOs as a way of diversifying away from the stock market (see Fortune's profile on Thomas Lee).
Gus |
