Summary
Why would Toshiba enter a market where the form factor is becoming less popular because of desktop unit skrinkage?
Analysis
Toshiba would like to maintain their existing high capacity, regardless of form factor, because it enables them to take orders at a lower price than if they had lower capacity.
In order to reach their goal of growing share the next couple of years, they must look at ways of taking business while retaining net margins or even growing them with higher gross margins.
It's all about capacity utilizations across their product roadmaps.
I'll explain further on our call, based on my tenure as VP & acting COO overseeing WD-Connex's operations.
This author consults with leading institutions through GLG
Analyses are solely the work of the authors and have not been edited or endorsed by GLG.
