The world is getting smaller for Western Digital, and the $3.6 billion-a-year Lake Forest (Calif.) maker of hard drives likes it that way. As consumers rush to buy feature-packed cell phones, MP3 players, and other devices, the longtime maker of 3.5-in. drives for PCs has fast changed gears to produce 2.5-in. drives for notebooks and laptops and 1-in. drives for digital cameras and cell phones. The larger drives still generate the majority of Western Digital sales. But as the market for PCs slows, Western Digital this year shipped 4.5 million drives for digital video recorders, double the unit shipments of a year earlier. But hurdles still remain: It only recently started production of its smaller 1-in drives, which must compete against smaller-capacity flash memory units, whose makers have recently slashed prices. That could make for a difficult launch for Western Digital's line of new 1-in. drives, which only began production in late 2005.
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As of 5/31/06
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|Industry||Computers & Peripherals|
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