Disk Drive Sector Discussion Forum 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 : Disk Drive Sector Discussion Forum

WDC 162.40

+2.9%

Nov 17 3:59 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Sam who wrote (6424)	5/24/1999 10:34:00 PM
From: Henry W Singor	Read Replies (1) of 9256

Sam and Z Analyzer I thought I would respond to both of your messages at once. Sam Said >Why will the profitability of IBM's drive operations improve if they are no longer the areal density leader? And do we know that they are profitable? How do we know this? I meant to imply that their gross margins will improve if the ship only higher end drives rather than a combination of high and low end drives. Much like Seagate makes better margins at high capacity points rather than low priced desktop units. Z wrote >My understanding has always been that IBM was into enterprise, noebook and high end desktop. I don't believe they were too big in low capacity desktop drives. Somehow, I also doubt they will be very far behind in getting to 6.8. -Z Read my earlier post and follow the links there. exchange2000.com Also QNTM has been shipping 6.8's since April. Maxtor is scheduled to begin volume in June, WDC will be sometime in July, I have heard no news from IBM although WDC did claim to be using IBM heads. Sam Wrote >I thought that their plan was to use WDC as their effective proxy for lower end desktop, making their money through higher margin component selling rather than assembled drive selling. That is something that I speculated in the above post. It seems reasonable but I know of no official release from either company that would state this to be the case. Henry

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next