Hard disk drive (HDD) manufacturer
Western Digital Corp.
) introduced two external desktop drives - My Book and My Book
for Mac - with storage capacities ranging from 2 TB to 4TB.
The new drives are also equipped with enhanced data security
features, such as WD SmartWare Pro software, that provides
automatic data backup. Additionally, My Book hard drives have
been accessorized with Dropbox capabilities, which offer data
back up in the cloud.
Apart from these features, the hard drive comes with Acronis
True Image (ATI) WD Edition, which can be used to delete
confidential data securely and recover data in the event of a
system crash. Priced at $129.99 (2 TB), $149.99 (3 TB) and
$179.99 (4 TB), the new product line is available from the WD
store and other retailers and distributors.
We believe that the company's rolling out of new storage
devices to attract more customers should be beneficial. However,
increased innovation is resulting in higher R&D expenses,
which may limit margin expansion.
Data storage technology is changing rapidly, especially with
the advent of flash technology. As data storage becomes
increasingly important for data centers and big conglomerates,
new storage technologies to enhance performance and meet new
challenges are coming into the market.
Western Digital has been expanding its presence in the solid
state drive (SSD) storage market due to sluggish demand in the PC
market (which primarily relies on HDD). SSDs are now being used
in servers due to the reduction in latency, which in turn helps
in faster response to real-time applications. Therefore, focusing
on SSDs for the enterprise segment looks like a smart move in the
Western Digital has been acquiring companies to strengthen its
SSD line-up. The company recently announced the acquisition of
Virident Systems Inc. for $685 million. The acquisition
strengthens Western Digital's position in the storage market,
especially compared to peers like
). According to iSuppli, Western Digital retained the top spot in
the hard disk market for the fourth year in a row beating Seagate
Currently, Western Digital has a Zacks Rank #2 (Buy).
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