Competitiveness: Heavily depended on Seagate, Thailand rides Seagate’s coat-tail to risky but new heights

 

Seagate makes Thailand a very sexy technologist country

  • By Pooky, Thai Intel‘s economics journalist

Thailand is the globe top exporter of computer “Hard-Disk” thanks to Seagate aggressive investment in Thailand-that have seen other hard disk companies followed suit to Thailand.

Seagate is so massive in Thailand, much of Thailand’s total export of high technology related goods, comes from one firm only and that is Seagate.

But the relationship has been a rocky one, as Segate had problems finding qualified workers and kept complaining to the Thai officials that Thailand must train more technology capable workers-said one Seagate technologist to the Thai press about 2 years ago, with Thai Intel translation, quote:

Vietnam has a target of producing 400,000 technology related graduate a year but Thailand can only produce 30,000 graduates a year….Thailand must instigate a training program to train more Thai workers to work in the technology area.

Thailand, indeed listened to Seagate, and the Thai universities and technology schools, began a campaign to recruit more students into the technology area. And while the numbers are still vastly below what Vietnam is able to produced, the stop-gap solution appeared to have worked, Segate is still going strong in Thailand.

But at Segate corporate side, things have not been rosy. And that may also impact Thailand.

On the technology front, as technology changes very quickly, the competitive landscape also changes. Currently, there is a merger and acquisition drive going on the the hard disk industry-with the emergence of new and re-vitalized players.

Seagate itself, was on the verge of a merger and acquisition deal.

Given that Vietnam is coming on very strongly in drawing high technology firms to the country, like the massive investment in a computer chip firm by Intel, there is always the danger of Thai high tech firms being drawn to Vietnam. Of particular concern is that Japan and the USA were instrumental in drawing up the Vietnamese high-tech master plan.

Thailand’s own high-tech master plan suffers like everything else in Thailand-from a non-professional environment filled with political plays as characterized by a net-work led country.

Then there is the hardening of the Thai currency Baht, that makes exporting from Thailand more expensive, even if parts imported into Thailand is becomes cheaper. Also the Thai government is planning to raise the minimum wage in Thailand by 25%, which would in theory, drive labor cost in Thailand into a  general up-ward trend massively.

The following is from Reuters:

Thu, Apr 7 2011

(Reuters) – Seagate Technology Plc (STX.O: Quote, Profile, Research, Stock Buzz) forecast its third-quarter revenue and margins to come in at the higher end of its previous guidance as PC makers scramble to shore up inventory fearing supply disruptions, and reinstated its quarterly dividend.

Shares of the world’s largest hard-drive maker were up 8 percent at $15.89 in heavy trade after market. They had lost over 5 percent since touching a high of $15.39 in December on speculation of a buyout offer for the company.

Seagate, which makes a range of disk drives for computers and external storage devices, said it expects to post $2.7 billion in third-quarter revenue — at the high end of its prior guidance.

“There’s a question to the extent how much of the Japan earthquake is playing out here, there is a little bit of scrambling on PC OEMs‘ part,” Stifel Nicolaus analyst Aaron Rakers said.

Seagate counts companies like Hewlett-Packard (HPQ.N: Quote, Profile, Research, Stock Buzz) and Dell Inc (DELL.O: Quote, Profile, Research, Stock Buzz) among its customers, and analysts expect the demand to continue into the fourth quarter.

Seagate also expects third-quarter gross margins at the high end of its previously forecasted 18-19 percent range.

Rakers said the improved margin expectations reflected the stability in pricing since the industry hit a bad patch last year.

The company said it would pay out 18 cents a share to shareholders of record on May 2, representing a quarterly payout of $75 million.

“Either they had to start the dividend or they were going for some share repurchase. They needed to send a message that they are focused on shareholder value creation, especially as the industry starts to consolidate,” analyst Rakers said.

Last month, rival Western Digital Corp (WDC.N: Quote, Profile, Research, Stock Buzz) had agreed to buy Hitachi Ltd‘s (6501.T: Quote, Profile, Research, Stock Buzz) hard disk drive business for $4.3 billion.

Western Digital shares were up 5 percent at $39.5 after the bell. (Reporting by Himank Sharma in Bangalore; Editing by Unnikrishnan Nair)

(Well it is Saturday! So more sexy technologist?)

(A guy would get very confused which button to click with the above techno girl nipple showing like that!)

(The above techno girl can make a guy wish he was born a computer cause it looks like a great squeeze)

(The above techno girl makes a guy wonder if the chick is into the tie-me-up game)

 

(A guy would be wondering about pealing off the apple store banner with the above techno babe)

(The above techno dude is a totally messed up guy to be keying the laptop!)

(Asian techno girl can be sexy but really, one wonder what type of shooting a guy will be doing to the apple on her head)

(Firefox babe is on fire!)

(OK, so lots of search for tits and boobs, sue me!)

(Do you not just want to Google search the OO on the above babe?)

 

(So OK, sexy techno girl, what is your hand doing exactly?)

 

(A common happening these days is techno girl wanting to show off her cleavage pretending to be playing with the mobile phone)

 

(Looks like the above techno chick is practicing for when licking something is very important!)

(OK, high fashion is in, but does a dude have to wear a tux to play with a laptop?)

(Suddenly, an ass looks interesting with technology!)

(Forget the tech, the mound looks more interesting to finger explore with)

(Social networking for a bedding partner?)

(Beautiful techno fox with beautiful tech! But where is the blond mobile?)

(Why would the above techno Asian babe need a picture of her face when every guy just wants a picture of her boobs?)

(If a mobile phone makes one pissed, throw it away!)

 

(What the above techno girl means she just found the iPhone and it belongs to someone else)

(Wonder what kind of sound would sleeping with the above techno chick be made?)

 

(OK, I will buy anything from both of you especially a three some!)

(Brother, talk about dangerous S&M lesbian chicks with tech)

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