Western Digital WDC recently unveiled its next-generation WD brand My Passport SSD (solid state drive). The latest My Passport version offers double the speed of its predecessor, enabling users to manage and ensure faster data transfer.
The latest My Passport, a palm-sized SSD, boasts of NVMe technology features write speeds of up to 1000MB/s and read speeds of up to 1050MB/s. Notably, the original My Passport SSD introduced in 2017 had a speed of 515MB/s.
The new SSD is powered by USB 3.2 Gen-2 technology and ships with a USB-C cable and a USB-A adaptor. It can be used with portable devices like smartphones, tablets, Apple's AAPL MacBook and PCs. This storage device will enhance overall drive capacity, dependability and performance.
Western Digital Corporation Price and Consensus
My passport SSD also features software that enables users to easily move their data on the cloud and has a password protected 256-bit AES encryption to provide enhanced data security.
At present, the latest My passport SSD is available in gray colour with storage capacity of 500GB and 1TB, retailing at $119.99 and $189.99, respectively. The company is expected to launch the SSD in more colors (red, blue and gold) and storage capacities in the upcoming days.
The new product launches will enhance Western Digital’s existing product portfolio and aid it in getting a strong foothold in the global SSD market.
Rapid Growth in SSD Market Bodes Well
Western Digital is one of the leading hard disk drive (HDD) producers in the United States. However, HDD business is under pressure due to the transition to SDDs as this offers faster access to data and higher speed, and are more power efficient. The company’s expansion into the SSD storage market with new product launches bodes well for its top line in the days ahead.
Per a Grand View Research report, the SSD market is anticipated to witness a CAGR of 15% during 2020-2026. Markedly, the coronavirus crisis has triggered a work-from-home wave that has led to an increasing adoption of advanced data storage solutions.
Exponential growth in digital data and increasing penetration of high-end cloud platforms, including public and private clouds, is bolstering the uptake of SSDs.
Moreover, the growing clout of SSDs in connected car applications is noteworthy. Connected car applications require better storage, high-quality graphics and communications, which is fulfilled by the SSDs.
Further, SSDs are increasingly being leveraged by data centers. SSDs are utilized in servers owing to the reduction in latency, which in turn facilitates faster response to real-time applications. E-commerce and financial enterprises need faster response time and thus data centers serving these clients are opting for SSDs.
We believe that the new SSD offerings will boost Western Digital’s growth prospects and aid it in capturing a larger share of this market.
In the near term, supply chain disruptions and lockdowns stemming from the coronavirus outbreak are likely to affect the end-market demand for Western Digital, especially at brick and mortar stores. Moreover, management expects higher COVID-19-related logistics costs to be a headwind on the gross margin.
Further, increasing expenses on product enhancements to counter stiff competition from storage players such as Seagate Technology STX and Micron Technology MU, are likely to weigh on the bottom line, at least in the near term.
Currently, Western Digital carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
(We are reissuing this article to correct a mistake. The original article, issued on August 21, 2020, should no longer be relied upon.)
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