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Consumers benefit again

According to reports, we may witness a price war in the hard drive business industry. At least this is what Seagate Technology CEO Bill Watkins said on Wednesday. Seagate is currently the world's largest hard drive manufacturer and competes with such companies as Western Digital, Hitachi, Samsung and Toshiba. According to Watkins "If pricing doesn't drop for us, it'll be an upside." Seagate is expecting stiff price cutting from its competitors through into 2007.

Seagate believes that despite the aggressive price cutting from competitors, the only gains they are receiving are minor. Watkins indicated that "[our competitors] are getting volume units and share, but it's lousy share." Watkins said that Seagate gains more share because of product quality, reliability and support rather than heavy price cutting. Watkins also noted that Seagate's competitors are cutting prices so much, it erodes into the profitability of its competitors.

Seagate acquired its largest competitor, Maxtor, earlier this year and announced that it would cut the company in half. Seagate mentioned that despite the job cuts, it would keep many of Maxtor's enterprise level product lines and services. Seagate also made several announcements of its own so far this year, including a 300GB, 15,000 RPM, perpendicular Cheetah and 1TB NAS products under the Maxtor brand name.

At the moment, Seagate is one of the few companies that are not under investigation by the US Securities and Exchange Commission. The SEC is currently investigating more than 80 companies for stock-option manipulations and back-dating practices that give huge financial gains to executive level employees. Watkins indicated that he was confident about his company's business practices, saying "we have a very rigorous stock-option grant program. It's such a rigorous process. We feel confident."

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RE: Seagate > All
By imaheadcase on 8/10/2006 4:55:08 PM , Rating: 2
HD are so cheap warrenty does not matter to most people. Who wants to return a drive with all the hassle that goes with it when a new one is dirt cheap.

RE: Seagate > All
By slashbinslashbash on 8/10/2006 5:51:57 PM , Rating: 3
That's kind of the point. WD makes it super easy. Go to their website, type in the HD's serial number and your credit card number (not charged unless they don't receive your bad drive), and they ship you a replacement ASAP. Put the old one in the box and send it back, badda bing, badda boom. It's really hard to imagine that the system could be further streamlined.

It's nice that it's so easy, since I've had to do it at least 3 times in the past couple of years :( I'm buying Seagates now.

RE: Seagate > All
By dice1111 on 8/10/2006 5:53:32 PM , Rating: 2
Those that don't have $120 lying around for a new 300GB. Believe it or not, money can be tight for some...

RE: Seagate > All
By mendocinosummit on 8/10/2006 6:33:53 PM , Rating: 1
Actually it is $95 for a 320GB, but only 300 usuable. If you need the storage your better off not wait.

"And boy have we patented it!" -- Steve Jobs, Macworld 2007
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