Sam,
Yes, Fujitsu and Hitachi are affected by the liquidity crisis in Japan/Asia. But those problems would be solved. Japanese companies are unlike US companies. Japanese companies don't need a high return on their investments. They are content if NI is in the 5% range.
If you look more closely, DD is the perfect type of industry for Japanese companies. Look at how compete in the auto industry. Low cost, high reliability, large volumes, and capital intensive (auto, DD: they look the same). Mass production!
Look back at the DD industry in the late 80's and early 90's, you will find that this industry was dominated by IBM, Fujitsu and Hitachi. They all missed the boat (or their corporate arrogance), and let Seagate, Quantum and WDC slipped in and dominate the market. |
