Apple (AAPL) iPad Eating into Hard Drive Sales (WDC, STX)

Western Digital Corp. (NYSE: WDC) chief executive officer John Coyne said Tuesday during an earnings call that tablet computers, such as Apple Inc.'s (NASDAQ: AAPL) iPad are eating away at the hard drive business, particularly on the low end.

Coyne said that the increased sales of the iPad could reduce shipments of low-end laptops and netbooks by as much as 10 percent to 20 percent in the next few quarters.

"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.

Western Digital and chief rival Seagate Technology PLC (NASDAQ: STX) have watched their stock price drop so far this year, but recent buyout rumors have buoyed the shares in recent weeks.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• The tech crown switches hands: Apple dethrones Nvidia as $4 trillion king
• Cantor Fitzgerald Reiterates Overweight Rating on DBV Technologies S.A (DBVT)
• Permian Resources Corp (PR) PT Lowered to $24 at UBS Ahead of Q2 Earnings