Applied Magnetics Corp Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Applied Magnetics Corp

APM 1.280

-2.3%

3:58 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: T Bowl who wrote (10928)	12/11/1997 3:43:00 PM
From: Gus	Read Replies (1) of 12298

Sorry for the delay, Todd. It's a good thing you quickly picked up on the fact that using numbers that soft only takes us to the cheapest seats of the ballpark. I think you made a good point about the MR/TFI mix. The reason I decided to assume, as a starting point, a 60/40 TFI/MR mix was the fact that Maxtor is singlehandedly driving WDC and everyone else nuts with its 7.0 GB (4 platters - RDRT 1.6 GB MR heads extended to 1.75 GB using TXN silicon and DSPs which provide up to 20% boost in linear density depending on overall drive design) which is price positioned between the 6.4/6.5 GB (4 platters using 1.6 MR/TFI or 5 platters using 1.3 MR/TFI) and the 5.0/5.1 GB drives (3 platters using 1.6/1.7 MR/TFI, or 4 platters using 1.3 MR/TFI). Question: I wonder if all these have been factored into RDRT's one-time TFI-phaseout charge of $30 M announced in November? Because WDC relies more heavily on retail sales (~10% of revenues) than the other majors (average of about 5-6% of revenues), and Maxtor has come from way behind to go neck to neck with WDC in this channel, the 5.1/6.4 GB is one of the most likely areas of tactical retreat. After falling behind Maxtor in retail market share in September, according to audited retail sales data from market research firm PC Data, Western Digital bounced back in October to take a 37.7 percent share of unit sales and market leadership. Maxtor garnered 35.1 percent of hard-drive sales in October, and Seagate was third with 10.5 percent. techweb.com By the way, 1.2 million DDs require about ~3.6 million platters. Platter ASP is about $10-14 (could be lower thanks to STMD) so that's a potential shortfall of at least $36 million. I don't follow the media guys closely because they all have been beaten down. Any ideas of where the shortfalls are going to be? Gus P.S. Dave: You know, I never did bother to find out who caught Flutie's pass. Strange but true.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next