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Technology Stocks : Maxtor (MXTR) -- Ignore unavailable to you. Want to Upgrade?

To: Dale Baker who wrote (129)	3/4/1999 4:56:00 PM
From: fiberman	Read Replies (2) \| Respond to of 467

< And what if IBM is using MXTR drives for their low-end machines? How does DELL getting IBM's high-end business affect MXTR if (presumably) DELL will be turning to IBM for servers and workstations and not consumer PC's? > Who cares if MXTR holds on to the cheap PC drives, and sub zero segment? Nobody is making money in that area. Most probably they are attaching a $5 bill to every drive which they ship to this market segment. Also this market will be controled by Conner Technology which is ramping up real quick with good supplier relationship in China. They will capture the sub zero market within the next 12 to 18 months. The real money is being made in the Enterprise region. Now that MXTR's business will be taken over by IBM, MXTR will have one hell of a time coming up with customers and programs to maitain their profit margin as last quarter. They have a tall order in fron of them. Man, this PC business is dog eat dog business. These box makers change for any reason. Talking about comoddity business. Hard drives should be in the same catagory as DRAMs the way we are going.

To: Dale Baker who wrote (129)	3/4/1999 5:51:00 PM
From: Dave	Respond to of 467

Dale: did you notice that bit about maybe becoming GTW's leading supplier Remember, that H&Q report was dated October 1998. dave

To: Dale Baker who wrote (129)	3/4/1999 6:54:00 PM
From: Stitch	Respond to of 467

Dale; <<And what if IBM is using MXTR drives for their low-end machines? How does DELL getting IBM's high-end business affect MXTR if (presumably) DELL will be turning to IBM for servers and workstations and not consumer PC's?>> Don't forget WDC's agreement with IBM that has them building desktop drives for them. As for Gateway, expect some fierce defensive measures from WDC also. GTW has always been a big customer of WDC and, while I believe WDC is the weaker of the bunch, I am always wary when I see a wounded bear in the corner. Best, Stitch