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Seagate’s Purchase of Maxtor Gives it 40% of Hard Drive Market

According to Reuters, Seagate will “buy smaller rival Maxtor Corp. for $1.9 billion to gain market share and bolster its No. 1 position in the notoriously cutthroat hard disk drive market.”

Seagate’s CEO Bill Watkins noted “We want to buy their customer base, their revenue stream and layer it over our manufacturing process.”

The deal will give Seagate an additional 10% of the hard drive market, bringing their overall total to 40%. Strangely enough, a few analysts believe that this deal may be good for Seagate’s nearest rival, Western Digital (16% of global market) because consumers are often wary about giving one company too much business.

Personally, I prefer Western Digital hard drives over Seagate – so I wouldn’t be surprised to see WD get a little extra business as a result of this deal. However, there is no doubt that Seagate makes a good product. It will be interesting to see how bringing Maxtor into the fold will affect that.

Posted by Sean


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