Re: Blockbusting news, results are in

[Ingo Oeser]

Hi Eric,
hi lkml,

On Sunday 19 October 2003 09:37, Mudama, Eric wrote:
> Yes, it saves us a lot of money every year, and lets us sell you each drive
> for a few dollars cheaper.  My understanding is that the #1 cost issue is
> the fact that to warranty a product legally in the USA, you need to
> maintain a certain amount of product to handle replacement drives, long
> after they stop being shipped.  Reducing our warranty inventory to some
> fraction of 1 year's volume (~55M drives) from some fraction of 3 year's
> volume (~160M drives) is a significant amount of product we don't have to
> "eat". (Remember, 3 year old drives, that we no longer need to hold on to
> for warranty purposes, are near-worthless in the consumer market)

This is solved very easily and has been done by Seagate before for long
warranty devices: Don't hold the devices and promise the customer to
receive same or newer/better device on warranty after the product is no
longer produced. That will make your revenues and your customer more
happy, as long as product quality isn't decreasing over drive generations.

So reducing the default warranty is no good customer service in my
opinion. And in Germany you have 2 years warranty per law, which
resemble the life cycle of a PC quite nicely.

Regards

Ingo Oeser



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