Like this Zeev. If IBM buys WDC, then IBM will sell their own heads to WDC and no longer buy from APM. A last count, WDC was APMs last customer with significant volume. After APM losses WDC as a customer then APM has no more customers left to lose(I guess you can twist that positive if you try).
Yes Compaq and Dell will want 2nd and 3rd sources for drives. How about Maxtor, Fujistu, Quantum, or Segate? Nobody is going to demand APM heads(as if they had some to sell yet) when they can still buy drives with SEG, MKE, or RDRT heads.
but I would, timidly, presume that APM's management has and is taking the necessary steps to qualify its "wares" with few other DD.
yes Im sure they are doing the best they can. That's really the wild card. That's the main play here. Do you think they can, and if so can they do it well enough, quickly enough, and produce and sell enough to make enough profit before the shareholders(or the banks) have had enough. :) The IBM buys out WDC junk is just a bonus.
Jon Bird |
