Hard disk drive (HDD) manufacturer
Western Digital Corp.
) announced the shipment of WD Blue, a 2.5 inch 7 mm HDD with 1
TB (Tera byte) capacity. WD Blue is for slimmer and lighter
notebooks and can also be used in standard notebooks with 9.5 mm
As the new drives can be used in standard notebooks, users will
only have to buy a high-capacity hard drive, rather than a new
Ultrabook or a high-performance slimmer notebook.
With the availability of WD Blue, PC manufacturers like ASUSTEK
and Acer are quite enthusiastic as they can offer slimmer and
lighter mobile computing systems along with high capacity storage
options. Previously, customers had to choose between sleek design
and high storage capacity systems.
The company seems optimistic about the launch of
) Haswell processor, which promises high-performance computing
experience to users. This could have a positive impact on the
demand for laptops, which in turn could boost demand for its 7 mm
WD Blue HDDs are shock proof, quiet, less heat generating and
high-performance drives and are available at a price of $139.0.
The drives carry a warranty period of two years.
Western Digital, however, cannot afford to be complacent with the
thinnest HDD in its kitty as its archrival
Seagate Technology plc
) has also announced the shipment of an ultra-thin (5 mm) 2.5
inch laptop HDD. The 500 GB drives are available at a price of
Despite stiff competition, we see Western Digital's relentless
endeavour to shift focus toward high margin enterprise drives to
offset slower PC demand. Last week, the company introduced WD Se
(an enterprise class drive for data centers) and Travelstar
5K1500 (for notebooks, external drives, gaming consoles and
Apart from this, Western Digital also announced that it will join
) to introduce a solid state hybrid drive (SSHD). The drive will
feature SanDisk's flash memory technology and Western Digital's
hard drive technology. The new SSHD namely WD Black will offer
hard drive-like capacity, slim form factor and flash memory-like
Western Digital has limited exposure to high-end corporate
desktop and enterprise server markets compared to its rival
Seagate. But we believe that with the introduction of WD Black
(SSHD) in association with SanDisk and recently introduced
drives, Western Digital will be able to grow its market share in
It has also been noticed that the company is slowly shifting
toward consumer electronics, branded and enterprise products. We
believe that this will prove beneficial for WD as dependence on
the PC market will be less.
We are also encouraged by Western Digital's impressive third
quarter 2013 earnings, which surpassed the Zacks Consensus
Currently, Western Digital has a Zacks Rank #2 (Buy).
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