Yet calls for the demise of the conventional hard drive might be premature. Although their use in traditional PCs might be increasingly passe, demand for high-volume, low-cost storage alternatives to help promote “big data” initiatives has driven increased use of hard drives for server applications and data analysis. That business should help both Seagate and Western Digital Corp (NASDAQ:WDC) sustain their hard-drive divisions well into the future, until some other cheap high-volume storage alternative arises.
In the coming Seagate earnings report, watch to see if the company mentions the competitive impact of Western Digital’s recent decision to buy solid-state drive maker sTec. With potential acquisition targets of its own to select from, a strategic buyout from Seagate could bolster its position within the increasingly important storage space.
The article Why Seagate Earnings Aren’t Doomed to Dwindle originally appeared on Fool.com is written by Dan Caplinger.
Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.