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To: EyeDrMike who wrote (10386)	11/17/1997 7:40:00 PM
From: Jonathan Bird	Respond to of 12298

<<My impression here is that if the supply of MR heads has been effectively bought out by QNTM, WDC is going to have difficulty meeting demand, and RDRT can get a premium for the MR heads they produce; unfortunately for APM, they're left out in the cold with the inability to produce MR heads in quantity.>> Mike, thanks for bringing that to my attention. Its nice to see someone refuting the rumors of a "glut" of MR heads. I agree with your above analysis if this is the case. Jon Bird

To: EyeDrMike who wrote (10386)	11/17/1997 10:02:00 PM
From: Robert T. Quasius	Read Replies (1) \| Respond to of 12298

Sir, I think that your facts are in error. You stated that because hard drive prices were falling that there would be a sudden rush to MR heads. The exact opposite should happen: WDC has stated that it will continue to use TFI heads for smaller drives because they are more economical. Severe price competition favors APM rather than RDRT, because APM is much stronger than RDRT in TFI. As far as quantity shipments of MR heads is concerned, APM has been shipping in quantity for some time now, and has been ramping up production. Their last two 10(k)s detail the fabs that have already been converted/constructed for MR heads, as well as the capital programs for ramping up MR head production and phasing out TFI, as the economics shift to favor MR for all drives. APM has also qualified their heads for at least two of WDC's MR drive programs. I doubt very much that APM is outright lying to us about this.