Well heres one reason to wonder about Maxtor for Maxtor bashers

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Maxtor clings to life

Not exactly news. The hard drive makers have been in perpetual hard
times for eons.  They usually blame it on a tech cycle for hard drive
demand. They say there was a boom way back in the late 90s. However
articles have been talking about a comeback nowadays for the industry
and Maxtor seems to be doing worse than the others.

Its really bizarre when you see stuff like this:

Worldwide HDD unit shipments and revenue will increase at a compound
annual growth rate of 15.5% and 10.1% respectively from 2004 to 2009.
Worldwide CE HDD unit shipments will experience the fastest growth
rate with a 37.4% CAGR over the same period.

Western Digital Reports Revenue Up 20%

These results represented strong year-over-year performance, including
26% unit growth, 26% growth in revenue versus the year ago period.

For the year ended July 1, 2005, WD reported revenue grew 20% to $3.6
billion, and net income grew 31% to $198.4 million. The fiscal 2005
results included the $19 million charge for a lawsuit settlement.

WD indicated that 23% of its Q4 revenue was derived from sources
including consumer electronics, enterprise applications, notebook PCs
and retail sales. 77% of the company's fourth quarter revenue came
from hard drives configured into desktop PCs. This compares with a mix
in the year-ago quarter of 15% non-desktop PC revenue, 85% desktop PC
revenue. In fiscal 2005, WD funded, developed or launched several new
products aimed at the consumer electronics segments for personal and
digital video recorders and handheld devices and at the markets for
notebook PCs, enterprise and retail consumer storage.

Seagate is also making a profit.

Heres an interesting bit :

Are Glory Days of the HDD Market in the Past?

In 1995 the Hard Disk Drive market was much bigger than it is today:-
$18 billion revenue.

During the 1980s to mid 1990s there were over 130 manufacturers of
hard drives. Most of these exited the market because the pressure of
competition due to technical innovation and increasing capacity at
decreasing cost was too high.

Flash memory has overtaken many functions at the low end of the hard
drive market - and flash market revenue is close to overtaking the
hard disk market in 2005.

For a history of the disruptive changes in the disk market see the
excellent book "The Innovator's Dilemma" by Clayton M. Christensen.

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