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Technology Stocks : Applied Magnetics Corp -- Ignore unavailable to you. Want to Upgrade?

To: Greg Jung who wrote (11827)	5/4/1998 6:49:00 PM
From: Spots	Respond to of 12298

'Cause WDC, the one without it's own supply, is THE wildcard plum for the independent head suppliers. Also APM's past (by far) largest customer.

To: Greg Jung who wrote (11827)	5/4/1998 7:06:00 PM
From: Stitch	Read Replies (1) \| Respond to of 12298

Greg, You need to do a little research. The IBM/WDC deals specifically targets the desktop products and specifically excludes the high end. The whole name of the game is to reduce cost through reduced component consumption. Morgan Stanley has produced an interesting analysis of the deal. In it they say the following: - The announcement with WDC is also somewhat symbolic in our opinion as we suspect that IBM is making a statement that it might not be terribly aggressive in the desktop disk drive market itself, instead choosing to play that market through its component manufacturing business. This is considerably more important then a simple supply deal Greg. It also involves other technology exchanges. It is by far a more proprietary arrangemment then a simple OEM head supply contract. Best, Stitch