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Seagate lands customer for tiny drives

Creative Technology has signed up to use 1-inch drives from Seagate.

Seagate Technology announced that its tiny hard drives will spin out tunes for portable music players made by Creative Technology. Creative chose Seagate to supply disc-drive storage technology for its new portable audio product lines, starting with Seagate's new ST1 Series hard drives, the companies said on Tuesday. In June, Seagate introduced the ST1 1-inch drives, which are designed to hold up to 5GB. Hitachi and other rivals make drives 1-inch in diameter, but these do not store as much data.

Although disk drives have emerged as an important storage technology for consumer electronics gear such as Apple Computer's iPod, Seagate has been struggling of late. On Tuesday, it reported a net loss of $33 million, or 7 cents per share, for the quarter ended July 2. It also has announced a plan to trim its work force by about 2,900.