Samsung and Hitachi are Getting Out of Hard Drives

Samsung and Hitachi are Getting Out of Hard Drives

posted Friday Oct 21, 2011 by Scott Ertz

Samsung and Hitachi are Getting Out of Hard Drives

We all know that the era of hard drives is coming to an end, replaced by the quicker, more power-efficient solid state drives. Between a technology shift and a number of conspiracies and scandals, Samsung and Hitachi have decided to close up shop on their hard drive businesses and sell them off to the competition.

The problem here is that the competition is few and far between. In fact, as of right now, there are only 4 companies manufacturing hard drives: Hitachi, Samsung, Western Digital and Seagate. Because of this, Western Digital has agreed to purchase Hitachi's business for $4.3 billion and Seagate will pickup Samsung's business for $1.375 billion. Clearly the, now, big 2 believe there is still enough of a market to shell out a combined $5.675 billion to lock-in the industry.

Why would they spend the money instead of just letting these guys fail? Hit the break to find out.

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