Hard disk manufacturer Seagate Technology Public Limited Company (STX) further enhanced its wireless storage device portfolio with the launch of a 500 gigabyte (GB) portable wireless drive that is compatible with mobile devices. The new product is expected to be available by early February this year at online retailer Amazon.com Inc. (AMZN), multi-channel electronic retailer Best Buy Co. Inc. (BBY) and Seagate.com.
The wireless drive, with a price tag of $129.99, will be available in a variety of colors. This device can connect up to three smartphones or tablets and store as many as 200 high-definition movies.
The device can also be accessed via the Seagate Media app available on Apple’s (AAPL) iOS, Google’s Android and Amazon’s Kindle Fire HD. It can store video, photos, music as well as documents which can be enjoyed on the big screen via Apple Airplay, Google Chromecast, Samsung Smart TVs and Roku players.
Seagate is focusing on innovating new products. The company, otherwise known for HDDs, also supplies solid state drives (SSDs) — expected to experience high demand, going forward. However, the company has undertaken several initiatives to gain traction. In Apr 2011, the company added Samsung Electronics Co.’s HDD business giving it access to Samsung's NAND-type flash chips for its SSD products.
Apart from this, Seagate has been able to control costs and increase the sale of high-margin products. Moreover, the company is coming up with new products to attract customers and address other segments. Seagate also has greater exposure to high-end corporate desktop and enterprise server markets than its rival Western Digital Corporation.
Further, we believe the secular growth of digital data, modest growth in the total addressable market and higher demand for storage are expected to drive the company’s growth. Additionally, synergies from acquisitions and product innovations continue to drive growth.
Currently, Seagate carries a Zacks Rank #2 (Buy).
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