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

To: Z Analyzer who wrote (1684)	12/6/1997 10:52:00 AM
From: Chuck Bleakney	Respond to of 9256

I think in general QNTM's employee's are pretty optomistic... but there are still challenges ahead.(I think that this attitude is very healthy) Honestly, I am not very aware of the profitability of our competition. Most of my statements were just from what I can generally see of these various company's from the outside. I work in the high end business working on custom chips for our high end disk drives. I don't necessariy think that WDC is going to buy it, but they certainly waited too long to start the transition to MR, and this is going to have a significant impact on them. They made very remarkable increases in market share... now they are likely to loose them while they scramble to catch up. Accelerated pace catch ups are prone to mis-steps... if they make one it will be a big OUCH. With such a field of entrants, no one is going to wait for you to fix your problems... They'll simply go elsewhere. WDC could easily be depressed for a year plus. Can they survive through that? Will it make them a takeover candidate? If they do survive (as WDC) its going to be an uphill battle all the way. No I also don't expect the Koreans to roll over and play dead, but I suspect they'll have to change something because of the cash crunch... What they change is up to them. We'll just have to see what they do decide. I think that this thrust into the DD marketplace is at a place where it could go either way, but that the eroded margins are going to give them a push into making a quicker decision. Chuck