Western Digital (WDC) has expanded its mobile storage portfolio with the launch of My Passport Wireless, a Wi-Fi enabled storage device that can connect up to eight devices and store up to 2TB data. The device is priced at approximately $130 for 500GB, $180 for 1TB and $220 for 2TB storage space.
The drive is accessible through Western Digital’s My Cloud app for Apple’s (AAPL) iOS and Android-run devices or through a desktop or laptop using the browser. Storing documents on the drive does not require any Internet connection as the device broadcasts its own wireless network. The drive transfers data at speeds of up to USB 3.0 for cable transfer. Also, the drive is equipped with an SD card slot.
Although Western Digital’s entry into the portable wireless devices comes when storage services related to smartphones and tablets are being adopted on a large scale, this segment is highly competitive. Seagate (STX) and Kingston offer a number of products in this category.
Nonetheless, Western Digital’s product scores over Seagate’s offerings in terms of battery life, reportedly. My Passport Wireless’ battery life translates into six hours of continuous streaming and close to 20 hours of standby power. Also, the SD card slot remains a product differentiator among other competing products.
The growing demand requires a new storage standard and easy accessibility. We believe that Western Digital’s new portable dual drive product will benefit from pent up demand in the storage market.
Moreover, the company is expected to get good mileage from its cloud-based business. Cloud-based storage has become the order of the day as it allows users to access content through different gadgets such as smartphone, tablets and personal computers.
We believe the secular growth of digital data and increasing exposure to the small and medium business space are the long-term positives. The company is launching storage devices to attract more customers.
Nonetheless, sluggish macroeconomic factors coupled with declining PC market and higher investments on innovative products remain the headwinds.
Currently, Western Digital has a Zacks Rank #3 (Hold).
Investors may consider a better-ranked stock in the technology sector like Micron Technology (MU) which sports a Zacks Rank #1 (Strong Buy).
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