With the disk drive industry channel inventories under control (4-5 weeks), an easing of media constraints (glass, aluminum) and aggressive pricing by Samsung/Hitachi (HIT) (Seagate (NASDAQ:STX) also vowed not to cede more shares) Western Digital (NYSE:WDC) /Komag (KOMG) is straining under a lot of negative factors. Furthermore, STX’s lowered capex outlook, given improved yields and better utilization on Maxtor assets, could affect Xyratex (NASDAQ:XRTX) /Intevac (NASDAQ:IVAC).
Advanced Micro Devices (NASDAQ:AMD) will bring a new breed of multifunction chips to market by early 2009, codenamed "Fusion". The chip will combine the calculating power with graphics components that draw three-dimensional characters and scenery in game software.
Microsoft (NASDAQ:MSFT) will offer coupons for free or heavily discounted upgrades to its long-delayed Windows Vista operating system to consumers who buy computers this holiday season ahead of the software's release.
Dell (NASDAQ:DELL) is set to begin shipping notebooks that feature AMD CPUs. The twist is that Dell will target the low-end of the notebook market with its AMD models, with prices ranging from $449-499. That’s right, a sub $500 laptop. AMD currently accounts for less than 15% of the global notebook CPU market, but the company expects to grow its share significantly by partnering with Dell.