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

To: Tom Simpson who wrote (8116)	3/18/2000 11:17:00 AM
From: Z Analyzer	Read Replies (1) \| Respond to of 9256

<<But perhaps the real question that remains is whether WDC, Quantum, Maxtor, and Samsung can afford NOT to support TWO major independents. >> Its not really a question of how many independents. Just a question of how many players. Perhaps even better for the virtual companies if captive head suppliers have deeper pockets to reach into to fund their losses. By the way. A short decent period for drives (and still very modest profits) and Conner has found funding. Initial capacilty is low but the facility is large enough to impact the market meaningfully. -Z

To: Tom Simpson who wrote (8116)	3/20/2000 3:33:00 AM
From: Gus	Read Replies (1) \| Respond to of 9256

But perhaps the real question that remains is whether WDC, Quantum, Maxtor, and Samsung can afford NOT to support TWO major independents. How about this: Can the two major head independents afford to continue supporting WDC, Quantum, Maxtor, Samsung AND every Tom, Dick and Harry who wants to be in the disk drive industry? <g> The case for RDRT and TDK/SAE as VERY profitable and thriving suppliers to a very LIMITED number of disk drive players (including the vertically integrated players like SEG, Fujitsu and even IBM) should be fairly self-evident, but RDRT has clearly demonstrated that it is a tactically-oriented company with a poor sense of the strategic big picture (see botched APM-RDRT merger) while TDK/SAE has a uniquely Japanese cross-ownership structure (e.g. Matsushita owns about 30-40% of TDK and 100% of MKE, Quantum's contract manufacturer) that limits its options in ways difficult to fathom.