Image via WikipediaAppleInsider | Apple's iPad shaking up hard drive industry - reportAs Apple's success with the iPad continues to grow, hard drive makers warn that sales of Apple's tablet will continue eating away at sales of hard drive-equipped PCs.
Western Digital Chief Executive John Coyne told analysts Tuesday during an earnings call that tablet computers such as Apple's iPad are slowing the hard drive business, especially on the low-end. The iPad could cause as much as a 10 to 20 percent reduction in shipments of low-end laptops and netbooks over the next few quarters, Reuters noted Coyne as saying.
"What I would say to investors is to look at the long-term demand for storage, the fact is the most appropriate solution for mass volume storage is hard drives and to look at the long-term progress the industry has made over the last 10 years," said Coyne in an effort to reassure investors.
Both Western Digital and rival hard drive manufacturer Seagate watched their stock price steadily drop during the early part of this year, although rumors of buyouts have helped the stocks rally in recent weeks. According to Reuters, some analysts view Western Digital as a "good candidate for a leveraged buyout" because of its low share price and strong cash flow. Western Digital's stock price has fallen 35 percent since January.
Several private equity firms have reportedly expressed interest in purchasing Seagate and taking it private, Reuters reports. The company has been down that road before; it went private in 2000, re-entering the public market in 2002. Seagate will report its quarterly earnings on Wednesday.
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