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Technology Stocks : Western Digital (WDC)

WDC 176.37

-5.8%

3:59 PM EST

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To: Pierre-X who wrote (7542)	11/12/1997 11:14:00 PM
From: John Wang	Read Replies (1) of 11057

Pierre-X: <<I'm a little confused here by the use of "density" in this context. I could very well be mistaken but I thought density was a measure of bits per sq in?>> Density can be measured by bits per sq in or GB per platter. Higher bit per sq in will give you higher GB/platter. Heads and disk (media) are major portion of the material cost of a HDD. I don't exactly the cost for a disk plus two heads. It is probably in excess of $20. Someone that knows the cost can correct me. Therefore, if WD use 2 platters (4 heads) to make 4.2G HDD, and its competitor uses 4 platters (8 heads)to make the same HDD, other being equal, WD will have cost advantage of at least $40. That's a lot of money for desktop HDD products. The same comparion can be made for 9G enetrprise drives. WD uses 6, and other folks use 10. Who is better to survive the price erosion? WD probably uses RDRT, IBM and maybe APM for desktop MR heads. I don't know about disks. John

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