Thanks Guy. So I presume that the Fools are going to be pulling an all-nighter as they advised, since they offered no help in determining "figuring out who is best prepared".
1) IBM - a) Risky moving to a new technology, b) GMR price per MB "compares well with existing", though "total price will be double". From this perspective, GMR is a technology looking for a use, IMIO. (in my ignorant opinion). Like I really need 8GB on my desktop.
2) QNTM - a) May have a window for continued profitability for desktop MR, as they have large, stable capacity sources for MR heads, they are transitioned, committed, etc. But since WDC (see "a" below) may clean their clock in the future, then who cares. As for DLT, who cares. Those profits may be eaten up by money losing high-end drive biz.
3) WDC a) May be able to leapfrog MR somewhat and begin GMR transition sooner, and pull off a coup against QNTM and SEG. That is, if they survive. They're in the analyst dog-house for the time being.
4) Fujitsu - The party spoiler. I wonder why they think they will be able to retain any market share gains, once they raise prices back up to a level where they will make money? Isn't this a commodity biz?
5) SEG - You have to ask yourself whether or not their vertically integrated strategy has paid off so far. Doesn't look to me like it has.
I guess the only solution to all this is to continue selling off the drive makers, back to the $5 and under catagory. The DD biz will never be profitable.
DK |
