Seagate anticipates lost revenue from flash iPods
updated 12:45 pm EDT, Thu July 21, 2005
iPods may hurt Seagate
Seagate worries that Apple will reduce MP3 hard drive consumption by ramping up its flash-based iPod strategy. Piper Jaffray maintained an "outperform" rating of $27 price target on Seagate Technology after the fiscal fourth-quarter earnings release but stated that "some near-term weakness could be experienced in the one-inch drive market due to flash-memory encroachment and in the gaming market as Microsoft and Sony shift to new gaming platforms [...] One concern is that Apple Computer may increase the flash-based iPod mix thus reducing MP3 hard disk-drive consumption."
