| Free Newsletters Rumblings of Drive Price War Start to Rattle Western Digital
Wall Street's concerns about price wars for disk drives could spell the end of Western Digital Corp.'s long run-up.
The Lake Forest-based drive maker's stock has been on a tear-its shares are up more than 50% in the past year with a market value of about
The company has been riding high amid stable supplies and prices for disk drives, as well as market share gains in drives sold at stores and used in laptop computers.
Key rival Scotts Valley-based Seagate Technology LLC has seen a similar, though less dramatic, run-up in the past year.
But Western Digital's shares have reversed course recently, slipping about 5% last week. They're off about 15% since their recent peak at the end of February.
The trouble started with Seagate, which last month cut its outlook for the June quarter and reported March-quarter earnings that were in line with expectations but revenue fell short.
The culprit: price cutting on drives by Western Digital and Hitachi Ltd., according to Seagate.
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