Seagate’s $2 billion purchase of rival Maxtor has essentially reduced the number of serious storage disk drive contenders to five - Samsung, Western Digital, Hitachi, Fujitsu and of course, the new Seagate.
This will mean slightly less competition, although Maxtor's product line has few overlaps with Seagate’s range of products, apart from the obvious ATA Consumer grade products.
Maxtor had suffered some significant financial setbacks recently but was still a powerful force to be reckoned with. With the purchase, Seagate will get manufacturing facilities as well as an important market presence. For industrial and server based products, there will not be any notable change as both manufacturers, as for the rest of the industry, use the same technology.
The Seagate/Maxtor entity will be the only one offering a full range of storage products, ranging from consumer grade PATA HDDs for entry level PCs, right through to the 15Krpm, ultra quick U320 SCSI hard disk drives that power most workstations.
Pile in products like external hard disk drives, flash drives, the forthcoming wave of 1-inch hard disk drives, and stand alone NAS and SANs, all coupled with Seagate’s, solid 5-year warranty, and you have a compelling range that should propel Seagate to the number one spot.
More importantly though, Seagate is now ready to face the oncoming demand for consumer based products (camcorders, personal media players, video recorders) that promise to overtake computers as the next area for double digit growth.