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Every one seems to be a love with Seagate now. To play the devil's advocate, Seagate's profitability stems largely from the high-end, and within the high-end from their 10,000 rpm drives. Quantum now shows considerable promise in the high-end and in 10,000 rpm drives, IBM just announced what they claimed to be the fastest 10,000 rpm drives, and I believe, that it was Hitachi, that just announced 12,000 rpm drives. Needless to say, Fujitsu is also likely to be a successful player in this market. So the question is, given reasonable success by these companies, can we not expect considerable pricing pressures to resume in the high-end? And if Seagate's high-end profitability deteriorates, where does this leave Seagate overall? -Z |
