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

To: Gottfried who wrote (3698)	6/14/1998 8:48:00 PM
From: Gary Burton	Respond to of 9256

thanks.

To: Gottfried who wrote (3698)	6/14/1998 9:38:00 PM
From: T Bowl	Read Replies (2) \| Respond to of 9256

GM - From the IBM CC a while back: << you said agreement doesn't preclude other head makers from competing, but it wasn't clear whether others can compete on GMR products or only GMR products not tied to IBM technology? - other head makers will be able to compete with non-IBM designs in GMR or any other head technology. We will continue development efforts on other platforms that we believe will be important to the future such as sub 0 DD. => you will continue separate GMR development effort? - yes we will on that or MR technologies => isn't that in conflict with your typical approach of trying to keep focused on a few distinct product lines? - it is a bit of a change from the past. We're finding that necessary as the industry changes. We potentially could have two platforms in the future.>>> Read that again with an open mind. Note the key phrases.. My read is that in the past WDC has focused on one product family for the desktop - Caviar. It was a focused effort in order to maximize the efficiency and profitability of the line. Back in November WD was asked whether they would attempt to build a Bigfoot competitor product. They insisted that this was not in their best interest because they would lose the current focus. Well, I think we've all learned that WD feels they cannot keep up with the technology in today's fast moving DD market. The IBM relationship is a natural fit for the 2 companies. IBM has the technology, WD has the cheap manufacturing processes. You can see in the comments from the IBM CC that they have changed their tone a bit from the past. They will team with IBM and attempt to produce bleeding edge products(which is where the profits lay). These products will be IBM designed and use IBM technology. Anyone who tries to deny this is not thinking logically IMO. It is important to note that IBM is in it to pass off some of the high costs of the bleeding edge technology, not to produce a $50 or $80 DD. They are not interested in the $500PC products. WD will design and produce these in house. It is these products that outside head suppliers will be able to compete for. The mainstream desktop product lines have been taken off of RDRT/APMs plate. RDRT may survive, but they will be a much smaller player than anyone ever suspected. APM will fail. I know I am right, everybody else is wrong, todd (I had to end it like that...)