Silicon Investor (SI) -- The First Internet Community

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 : QUANTUM -- Ignore unavailable to you. Want to Upgrade?

To: Rational who wrote (6723)	12/14/1997 3:06:00 PM
From: Gottfried	Read Replies (2) \| Respond to of 9124

Sankar, a question: you said >I suppose QNTM, SEG and IBM have innovative ideas for DD and so there may be a sudden burst of news. For now, their models have not been easily replicated.< I frequently see the opinion on these threads that entry into the DD business is easy. I disagree with that and so does Jim Potter of DiskTrend. He says barriers to entry are high, primarily because of the many technical disciplines that are required to develop and manufacture DDs. Do you have an opinion on barriers to entry? GM

To: Rational who wrote (6723)	12/14/1997 4:14:00 PM
From: Rob S.	Respond to of 9124

One factor that becomes increasingly important to OEMs as ASPs for PCs decrease is the reliability of the componenets they use. I think that a lot of the success of Compaq in the sub $1,000 market is ude to the use of low cost but reliable components and mfg. The highly successful Pressario 2200 series uses the Cyrix/NSM MediaGX part that integrates audio, video, system I/O, and MPU into a simplified chip set and does away with the seperate boards and SRAM cache. Few components leads to greater reliability at lower cost. When you sell something as complex as a PC for a lot less money, the cost of quanlity assurance and handling of service and returns can make the difference between profit and loss. I have noticed that Quantum has been able to maintain a slight margin above the pricing of their "cheap" competitors. I don't think that is all wishful thinking - major OEMs test thoroughly for reliability and will pay a bit of a premium for it because the "total end-to-end cost" is lower.

To: Rational who wrote (6723)	12/14/1997 5:45:00 PM
From: Stitch	Read Replies (1) \| Respond to of 9124

Hello Sankar & Alan, Sankar, I could not agree with you more..that innovation still primarily weighs in favor of the U.S., and Alan, you are also correct that Samsung are not innovators. However, lets not drink our own bath water. I mean, what about floppy disk drives and televisions? At one time there was a whole generation of managers that touted television as a sterling example of U.S. dominant technology. And I had the personal experience of selling some of the first OEM floppy disk drives ever shipped. At the time it seemed we could do no wrong. Yet these markets AND technology slipped away. It used to be the conventional wisdom that the disk drive industry moved the target too often for Japan Inc. or Korea Inc. to hit it. But thats why Hyundai bought Maxtor. It let them get on the merry-go-round while it was still in full motion. Those are American designers guys. And frankly, Fujitsu , from a technology standpoint, are doing quite OK IMO. I think both companies bear watching as possible spoilers. As to the future? I like the balance sheets of WDC, Seagate, and Quantum. Though in the latter I am a bit troubled by the rumour that they will seek $400mm in new debt. I think they have enough to weather the storm. As for Samsung, I don't think they have a short term chance at all and maybe no long term chance. They did it in monitors but HDD business is entirely different. Even before the whistle got blown in Korea they were hurting in a large way. I have had an insiders view of their disk drive operation and can say that they have mistepped at every turn. They have a long wait before they can try again IMO. As for sub K systems ad nauseum there is still something I remain convinced of. There is going to be abolutely no surcease in the appetite for cheap, reliable, fast retrieve storage whether it comes from the desktop platform or the corp. server platform. I like the group, and I love the psyche of a market that presents a buying opportunity like this. Quite frankly, not for any reason of wisdom, I was short when the s**t hit the fan. For personal reasons I sold nearly all my positions early last Summer. Am I lucky or what? <VBG> Move over guys. I am climbing back on shortly after the New Year. Regards,