For example, the report warns against expecting an immediate recovery, as "the near-term outlook remains weak." Much also hinges on the timeframe in which the anticipated market for consumer electronics applications actually materializes. Still, the HDD market may be very close to its cyclical bottom. Market research firm, IDC, projects the drive market to grow roughly 13% in 2002, following a unit decline of 7% last year.
Maxtor, itself, get's mixed reviews. On the plus side, Bear Stearns expects the company will benefit in the long haul from new products and opportunities in both the enterprise and consumer markets as well as from the cost reductions associated with integrating the acquired operations of Quantum HDD. But, it also notes that Maxtor is currently unprofitable and forecasts losses will continue through the first quarter of 2003.