Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: La Traguhs who wrote (5815)	3/10/1999 8:28:00 PM
From: Z Analyzer	Read Replies (2) \| Respond to of 9256

<<So while the GMR transition will help HTCH when it gets into full swing, the question is, when "is full swing"?>> I believe I was once told that GMR vs MR did not increase the need for TSA. Am I incorrect? I imagine more future programs which happen to be GMR will also happen to be TSA but am not aware of a direct link. Z

To: La Traguhs who wrote (5815)	3/10/1999 10:00:00 PM
From: CPAMarty	Read Replies (4) \| Respond to of 9256

LT, what do you think of the following analysis? The 2.1 G/plat technology is in all the desktops costing 1400 or less. Maxtor 8.4 Gig drives with ancient 2.1 G/platter technology are going for 150 bucks; for WDC they are 120, for samsung they are 80 bucks. These use 8 head stacks and 4 platters. The HSA's alone cost maxtor and wdc 80 dollars and were made by readrite and TDK almost a year ago! For samsung they use amc's old thin film head and are considerably cheaper, about 50, and were made more recently. In all cases the drive companies are losing money big time on these. Worse, the difference at the consumer level between a 8.4 Gig 1" 3.5" IDE drive with 4 x 4.3 G/platter HSAs, 6 x 2.8 G/plat, and 8 x 2.1 G/platter is not extreme, and not nearly worth the large price difference. So joe consumer will snatch up the 2.1's as long as they are there, even me (boy that was not cool...) So the drive companies are cutting their own throats with by competing not just amongst each other but also against their very own product lines! Unfortunately rdrt sales now and especially margins are glued to the hips with maxtor and samsung. This is because the excess inventory of old drives also mean, in effect, excess inventory of readrite heads, with the age old 2.1 and 2.8 thinning down the demand for their current 4.3 and 3.5 product. Dont expect to see large leaps in 4.3 demand until the 2.1 and 2.8 are extinct. And the 3.5 becomes the poor mans drive. Frankly i am shocked to still see the 2.1 on the store shelves in such quantity...and it is a defacto standard in any computer sub 1000! Silver lining: For rdrt: The DD war actually benefits rdrt at High tech TDK's and IBM's expense. the volume delivery of the gmr will be with the 6.4 and not the 5.2 that is in the announcements. and this schedule will slide out depending on how fast john consumer clears out those 2.1's. (they will announce it for PR, but volume wont happen in earnest...this is they key to stock price, both mxtr and rdtt) and give RR breathing room and time to get their gmr process going. There is no silver lining for mxtr. It just plain sucks all around. So the stock price dive. They have technology in place for massive volume delivery of 5.2 and that cost is just sitting there because they are still dumping their own 2.1's in addition to fighting with wdcs and samsung cheapos!!!