Western Digital WDC introduced its latest storage solution— Western Digital iNAND MC EU551 — specifically designed for the requirements of 5G smartphones including ultra-high-resolution cameras, 8K video, augmented/virtual reality (AR/VR) and gaming. The storage solution will be available in three capacities —128GB, 256GB and 512GB.
The new mobile storage solution provides improved streaming experience for 8K videos and burst mode photography as it offers a 90% improvement in speed for sequential writes against the previous generation, added Western Digital.
Compared with the prior generation, this solution offers up to 40% and 100% improvement on random writes and random read performance, per the company’s estimates. The improvement in speed will support to smoothly run multiple applications at the same time.
iNAND MC EU551 also delivers 30% better speed for sequential reads that enables quicker boot up as well as faster launch of apps and increased upload speeds, noted the company.
Western Digital Corporation Price and Consensus
Western Digital Corporation price-consensus-chart | Western Digital Corporation Quote
Western Digital iNAND MC EU551, part of the company’s broader iNAND portfolio, is the first solution to be built on the company’s UFS 3.1 platform.
The company further added that the general availability of the offering is planned to begin in July 2021.
Rebounding Smartphone Market Underscores Revenue Potential
After being marred by supply chain constraints owing to the coronavirus crisis, smartphone market has started to recover. Per a Canalys report, smartphone shipments soared 27% to 347 million in the first quarter of 2021.
The repressed demand owing to the pandemic as well as roll out of new 5G smartphones is expected to drive the smartphone market. Per a Mordor Intelligence report, the global smartphone market is anticipated to witness a CAGR of 11.2% and reach $1351.8 billion by 2026.
Per IDC report, 5G smartphone shipments are forecast to comprise more than 40% of total worldwide volume in 2021. By 2025, 5G smartphones will comprise 69% of the global volume added the report.
Overall, the 5G smartphone market is anticipated to witness a CAGR of 129.25% between 2020 and 2027, according to Verified Market Research data. Increasing demand for ultra-high bandwidth and lower latency is driving 5G smartphone market added the report.
Also, accelerated 5G network deployment and increasing proliferation of applications infused with innovative technologies like AI and AR/VR are other key catalysts.
The rebounding smartphone market as well as increasing demand for 5G smartphones bode well for Western Digital’s latest mobile storage solution for, which boasts a faster NAND technology and enhanced firmware design.
Nonetheless, increases in costs associated with the product development and higher COVID-19 related expenses are a concern amid stiff competition from the likes of Seagate STX and Micron, among others.
Zacks Rank & Other Stocks to Consider
At present, Western Digital sports a Zacks Rank #1 (Strong Buy).
Other stocks worth consideration in the broader technology sector are Facebook FB and Zoom Video ZM. Both the stocks sport a Zacks Rank #1.
You can see the complete list of today’s Zacks #1 Rank stocks here.
The long-term earnings growth rate for Facebook and Zoom Video is currently pegged at 20.1% and 15.6%, respectively.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.
Click here for the 4 trades >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Western Digital Corporation (WDC) : Free Stock Analysis Report
Seagate Technology Holdings PLC (STX) : Free Stock Analysis Report
Facebook, Inc. (FB) : Free Stock Analysis Report
Zoom Video Communications, Inc. (ZM) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research