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Technology Stocks : Disk Drive Sector Discussion Forum
WDC 282.49+8.5%Feb 6 3:59 PM EST
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To: William T. Katz who wrote (1658)12/1/1997 9:13:00 AM
From: Chuck Bleakney  Read Replies (1) of 9256
 
>> So if you can make a disk that cheap using MR, why can't you make a disk at least that cheap using NFR? <<

You should be able to make a comparable *product*, but the price will
be higher for a couple of reasons. First, NFR uses magneto-optical
recording. This essentially should use a head similar to MR plus a laser with all of the associated optics. This adds more cost to the system. The relative efficiency of this is about a 10:1 recording ratio over the Orb drive. So even if the drive does cost about $600, the media cost comparable to Orb would be about $300... I don't expect it to cost this much, but it could cost as much as $100 and still be a
very competitive. Of course the cheaper, the better. A $100 price tag
for media would probably turn the general pc public off, so it depends upon the focus for the market segment(s) the company wants to capture.
Obviously, the cheaper the price for media, the deeper the market
penetration... But with a new product offering and the ramp up and
other new product problems they might not be trying to invade the pc
space right out of the chute. A phased product offering probably
makes more sense and this would tend to point to a higher price for
media initially... with decreases in price following the increases
in availability of supporting products and follow-on media.

Chuck
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