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Strategies & Market Trends : Asia Forum -- Ignore unavailable to you. Want to Upgrade?

To: Thomas Haegin who wrote (544)	1/7/1998 8:12:00 PM
From: Stitch	Read Replies (1) \| Respond to of 9980

Thomas: re: Seagate <<Anyway, Seagate just pre-announced a pretty bad 4th quarter. Obviously, Asia is hurting them.>> You are correct that the Asia economic problem is hurting Seagate but their difficulties are more complex. Seagate's problems are most brought on by growing capacity much too fast. They fell to arrogance brought on by at least 7 succesive quarters of dominating the high end market and underestimated the determination and success of new competition to that arena. In addition they way underestimated the importance and effect of the advent of the sub $ 1,000 pc which doesnt ship with a high end drive, coupled with a slow down in the higher performance PCs. Much of the PC growth of late is attributable to these "starter" models. The extent to which Seagate has been hurt by the explosive problems in Asian economies is the write down of $63 million in the last quarter due to currency hedging losses in Thailand and Malaysia. I will not be surprised to see additional losses on their next earnings statement on january 20th. Just thought I would jump in with some minor clarifications. Best, Stitch