Western Digital’s pain has mostly been Seagate’s gain. Now that Western Digital can meet demand hard drive prices may fall.That’s always been the name of the game in the computer space. As supply outpaces demand, prices will fall. As technology improves, prices fall on the older stuff.

1. Western Digital Recovers
Western Digital, one of the premiere hard drive manufacturers in the computer world underwent
some damages when flooding in Thailand stopped production on it’s components. Naturally,
that let competitor’s like Seagate get an advantage and gain some ground. Well, WD is back and
ready to rumble, as John Coyne, Chief Executive Officer says.
In a statement released on PR Newswire,
“Our third quarter performance demonstrates the potential of the new Western Digital, with just
three and a half weeks of HGST results combined with the standalone WD business,” said John
Coyne, chief executive officer of Western Digital. “Competing in the marketplace with our
separate WD and HGST subsidiaries, we now have the product portfolio, technology resources
and the people to fully serve the needs of a significantly expanded customer base and to better
address the tremendous growth opportunities in the storage industry in the years ahead.
“I am also pleased to announce today that the recovery activities related to both WD operations
and those of our supply chain partners impacted by the Thailand floods have reached a point
where we now have the capability to adequately meet anticipated customer demand in the current
quarter and beyond,” Coyne said.
Related to the subject, Larry Dignan of ZDNet writes: “The company reported fiscal third
quarter earnings of $483 million, or $1.96 a share, on revenue of $3 billion. Non-GAAP earnings
for the third quarter were $2.52 a share. The results included three weeksof the HGST purchase.
Western Digital said that it shipped 44.2 million hard drives in the quarter. Western Digital’s
pain has mostly been Seagate’s gain. Now that Western Digital can meet demand hard drive
prices may fall.”

2. That’s always been the name of the game in the computer space. As supply outpaces demand,
prices will fall. As technology improves, prices fall on the older stuff. Common sense. But now
that a major player is back in the game, expect this to benefit the consumer. But it could impact
Western Digital in a negative way. With news of price drops, stock prices have may plummet.
Despite Seagate Chief Executive Officer Stephen Luczo said “pricing has remained fairly
stable,” on an April 17 conference call with investors, look for stock prices to change. Naturally,
prices are going to fluctuate as part of normal business ebb and flow, but time will tell what’s
going to happen. Regardless, it’s nice to see the folks over at Western Digital back in the
game…
About WheresBigFoot: WheresBigFoot is a part of Global Internet Marketing Company
specializing in SEO web marketing and Pay per Click Advertising. Sign up an account today to
advertise your website. Learn more about WheresBigFoot by visiting us at
http://www.wheresbigfoot.com/