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Disk Drive Makers
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05.12.07Views:
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From Barron's 5-14-07Why Disk-Drive Makers Have Years to Run.
"Reports of the disk-drive business' demise have been greatly exaggerated. Since the beginning of the year, the No. 1 and No. 2 drive makers -- Seagate Technology (ticker: STX) and Western Digital (WDC) -- have seen their stocks decline 16% and 11% respectively, on worries that personal-computer sales are slowing substantially. Some analysts have even suggested that the newer kind of computer chip known as "flash" memory could completely replace drives in personal computers -- and put Western and Seagate out of business. But PC sales are doing just fine, and flash -- in great part owing to its cost -- is not going to replace disk drives globally for years to come."
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