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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: Not what the article says
By hwhacker on 8/10/2006 5:41:25 PM , Rating: 2
I'm tempted by a 74 or 150 Raptor in my C2D build, but I could buy 2x 7200.10 320's which will be faster in RAID 0 (I think) and have SATA 3.0gbs for faster burst rates over 1.5gbit.

I'm facing that same predicament. I already have a couple 250gb hitachis in raid for storage, and want raptors to go alongside them when I make the the jump to C2D...but those $99 16mb 320 7200.10's are almost too tasty to pass up, and may just sacrafice a little speed for massive space yet again. These price wars sure are nice...I just wish there was more competition to the raptor. :)

RE: Not what the article says
By AaronAxvig on 8/10/2006 6:05:35 PM , Rating: 2

RE: Not what the article says
By Sh0ckwave on 8/10/2006 7:41:30 PM , Rating: 2
Yeah, cant afford raptors so I picked up some of those 16mb 320 7200.10's for my C2D build aswell. Better value for money and they are not much slower in RAID0.

"Well, we didn't have anyone in line that got shot waiting for our system." -- Nintendo of America Vice President Perrin Kaplan
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