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Technology Stocks : Disk Drive Sector Discussion Forum -- Ignore unavailable to you. Want to Upgrade?

To: Mark Madden who wrote (7633)	12/27/1999 1:10:00 PM
From: Mark Oliver	Respond to of 9256

I'm reading a book about the evolution of systems in business. The development of MRP systems, client server models and how this is making it possible to take all the processes to finer and finer levels. It has also evolved to ability to outsource jobs like engineering and manufacturing, as well as work more closely with suppliers and distributors to get closer to a demand driven environment. As the shift moves to build to order, can the same old pattern work? As the time it takes a get every piece of the 1000+ part computer in place shortens, there must be a point where everyone says, "Hey we have to have a better relationship." WDC had one serious product recall. Could this become more common? At the moment, there seems to be no shortage of drives, but at some point this must happen. Perhaps the descending level of PC platforms makes this a problem? What happens when you look at Sun of SGI? They should be leading a trend of selling the highest end units that would be severely burdened by supply issues. Will they be the first to for stronger alliances to assure delivery? Can a stronger relationship assure anything as one-company leaps ahead only to fall behind in technology? Certainly more static businesses will develop tight supplier/vendor/distributor relationships, which will blur the traditional lines, and do away with some of the adversarial posturing we currently see. Regards, Mark

To: Mark Madden who wrote (7633)	12/27/1999 1:46:00 PM
From: Z Analyzer	Read Replies (1) \| Respond to of 9256

<<The demand for components looks like it is declining because of the fewer parts per drive. This means they can't sell an 80gb platter for $8.45 and survive. How about $84.50? Or maybe two 40gb platters for $50.00 each. or maybe four 20gb platters for $28.00 each. This is what it will take for component makers to survive unless they have some great cost cutting schemes.>> Considering that HTCH's suspension output, and probably that of the industry was remarkably flat last year, it would appear that reduced components per unit basically offset growth. This may continue for awhile, but must end eventually since you can't go below one head drives and I question whether it makes sense to go below 2. We also absorbed JIT inventory changes,loss of a substantial DD replacement market and yield losses on GMR heads. Question is whether very cheap PCs will spur the world market to greater growth, whether broadband will help and when consumer audio and video become meaningful. Will the internet make PCs so indespensible that virtually every family in the developing or developed world will want one to access the internet? Will digital VCRs fully relace conv which is a very big market (and initially would be bigger)? -Z