Seagate Technology PLC (NASDAQ:STX) Chief Financial Officer Pat O’Malley has revealed in an interview with CNBC that his company is “very bullish” about the future of personal computers.
The Seagate Technology PLC (NASDAQ:STX) executive was asked for his thoughts as well as his company’s thoughts about what the CNBC hosts described as the “stabilization” of the PC market. Why has the PC market not seen the downward spiral into oblivion oft-predicted in the past that it will undergo?
“I think what you’ve seen fundamentally in the PC [market] is that the innovation cycle [is] going. For years, it was sort of just taking out cost, cost, cost. But if you take a look at the companies mentioned – HP, Dell, Lenovo – they have invested quite a bit into their portfolio and they made very compelling solutions,” O’Malley said.
According to the Seagate Technology PLC (NASDAQ:STX) executive, this innovation has stemmed the rise of the tablet computer as well as guaranteed a place for the personal computer even though people are increasingly relying on their mobile devices such as their smartphones for computing.
He said that offerings such as all-in-ones, two-in-ones and tablet-like personal computers have kept the industry competitive against the mobile front, especially tablets.
Furthermore, Seagate Technology PLC (NASDAQ:STX), which makes storage devices for personal computers and other machines, is very positive about the prospects of the personal computer industry.
“We expect that to continue. That innovation cycle has been turned on and we don’t see the death of the PC anytime soon. We’re very bullish on PCs from now and beyond,” O’Malley stressed.
O’Malley said that his company expects the recovery of the PC market to continue if manufacturers keep their products compelling and cutting-edge. He also said that whether the market continues to store data in personal computers or in the cloud, Seagate feels very confident as it will benefit either way.
Jean-Marie Eveillard’s First Eagle Investment Management reported by the end of the third quarter that it owned about 2.72 million shares of Seagate Technology PLC (NASDAQ:STX).