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Report Reveals Samsung To Sell HDD Business Division Following Losses

Consumer electronics maker Samsung is considering selling its hard drive business division in order to invest money in new business lines, a report as revealed.

The company is hoping to get around $1.2 billion for its loss-making HDD unit but will be happy to sell it for under a billion, the Wall Street Journal reported. Samsung will use a significant chunk of the money it raises from the sale to invest in new revenue streams.

Samsung, which is the world’s largest maker of memory chips, is most likely to sell the hard drive division to storage technology maker Seagate.

The hard disk drive market has come under a lot of pressure from the rise of tablet computer devices like the iPad as they use flash memory components instead of magnetic disks found in laptops and desktops.

According to an article on Market Watch (opens in new tab), Samsung has promised to invest around $20 billion in new businesses by 2020.

The company has posted a weak first quarter forecast due to falling earnings. Samsung had posted a record $4.6 billion second quarter operating profit last year but has been struggling ever since owing to weak consumer demand.

Ravi Mandalla was ITProPortal's Sub Editor (and a contributing writer) for two years from 2011. Based in Ahmedabad, India, Ravi is now the owner and founder of Parity Media Pvt. Ltd., a news and media company, which specializes in online publishing, technology news and analysis, reviews, web site traffic growth, web site UI. Ravi lists his specialist subjects as: Enterprise, IT, Technology, Gadgets, Business, High Net Worth Individuals, Online Publishing, Advertising, Marketing, Social Media, News, Reviews, Audio, Video, and Multi-Media. He has also previously worked as Dy. Manager - IT Security at (n)Code Solutions.