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

To: stkinvestor who wrote (6755)	12/15/1997 10:14:00 AM
From: Sam	Respond to of 9124

If true, the Hyundai rumor would certainly be welcome. So would a story claiming that Fujitsu or NEC were cutting back, and Samsung focussing on their current areas of strength (whatever they are!). A note on barriers to entry: they are actually low if you have unlimited credit, access to knowledge of how to build the type of automated factory that MKE uses, and the stomach to weather huge losses. Really, it is barriers to making money in this business that is high, partly for the reason that Z cited--that expansion, and pushing out more and more drives, isn't that hard once you get up and running, and partly because of the speed with which change occurs--if you don't hit the transition points right, all the factories in the world won't help, as your products will be obsolete. As long as people who don't care about making money can get sufficient credit to build as much as they want, then the other players are toast. Those who say that they will accept that, and will just benefit from buying cheaper drives are taking a short view--it means that R&D investment will dry up. And while that may not matter in the very short run, it will, in not a very long time, become a bottleneck for the computer industry in general if it happens.