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

To: Gottfried who wrote (255)	12/2/1998 3:44:00 PM
From: Robert Douglas	Read Replies (1) \| Respond to of 1989

Gottfried, I'm thinking more of when Ford is putting out a contract for, let's say, radiators. Now there probably isn't much difference in radiator manufacturers, but Ford can't demand that radiator producers sell to them at a loss. If they did then who would make radiators? I think there is a definite trend in place toward developing working business relationships. Look at the proliferation in contract manufacturing and companies like SCI and Solectron. Without question those firms that use this type of outsourcing could demand unreasonable prices with the threat that they will take business elsewhere. This has not happened. Indeed the profitability of contract manufacturers is well above average. I guess what I was speculating might happen is that consolidation in the PC business might foster better relationships between the box makers and their suppliers. -Robert