Lockergnome Blog Network]
Chris Pirillo posted a blog entry
Seagate’s New Warranty Policy – Who Are They Kidding?
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Reported this morning on ZDNet, the Seagate company will be changing its warranty policy on many drives, beginning January, 3, 2009. The statement from the company gives a figure of only 5 % of the failures occurring in their drives between years 3 and 5 of service.
This may be so, but if it is, it shows a policy that has been decided by people who know little about perceived value and human psychology.
In many cases today, a choice between a Seagate drive and a drive, of equal size, from Western Digital or Hitachi is possible. I don’t really consider Fujitsu or Samsung drives here, as they are not widely available, or well known to the average consumer. Seagate and Western Digital are the heavy hitters here, and many don’t know the name Hitachi, and are slightly more comfortable when told that Hitachi is really what had been sold for years as IBM-branded product. In a $75 to $175 purchase, the difference of 5 to 10 dollars is hardly worth worrying about, and many times the drives are sold at equal prices.
What then, affects the decision process?
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Seagate blew this one. They’ve reverted to the competition. Now the only differentiator is price. That means that disk drives are a cheap commodity. Cheapest price.
Sell that stock!
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