Seagate Technology (STX - Free Report) has collaborated with HTC VIVE to introduce the Seagate VR Power Drive. The new product is aimed at augmenting battery life and storage capacity, consequently enhancing VR (virtual reality) experience for the high-end VIVE FOCUS VR users. It was launched at the 2018 HTC New Ecosystem Conference held in Shenzhen, China.
Seagate VR Power Drive features 1000GB storage of digital content and a built-in 5,000 mAh battery. Additionally, the integrated USB-C adapter and MicroB cable enables users a smooth access of files stored in VIVE device without having to connect to a computer. The drive furnishes a belt clip to users making it more portable.
With this new power drive launch, we expect the company to strengthen its market position against the likes of Western Digital (WDC - Free Report) .
China’s Expanding VR Market Bodes Well
VR is steadily gaining traction in China. An American Bar Association report reveals that Goldman Sachs envisions the global VR market to grow to $60 billion by 2025, with China contributing $8.14 billion by 2020.
The press release quoted that per a report by Greenlight Insights and iResearch, VR market in China came in at $550 million in 2016. China is projected to become the largest VR market in the world, growing to $12.64 billionby 2021 with the VR headset device market anticipated at $4.76 billion.
The aforementioned reports reinforce the prospects of the new drive which will ensure a smooth access, enhanced backup and view to the VR device.
Global Growth of VR Propels Storage Demand
Zion Market Research estimated that the global virtual reality market was valued at just $2.02 billion in 2016. However, the firm projects that the industry will bring in $26.89 billion by 2022, growing at a CAGR of roughly 54% between 2017 and 2022.
The robust growth rate of VR highlights the demand of rich storage mediums for VR devices. This consequently bolsters the prospects of similar storage drives catering to global user base.
Zacks Rank & Other Stocks to Consider
Seagate sports a Zacks Rank #1 (Strong Buy).
A couple of other top-ranked stocks in the broader technology sector are Mellanox Technologies, Ltd. (MLNX - Free Report) and Micron Technology Inc. (MU - Free Report) , both currently flaunting a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The projected long-term earnings growth rate for Mellanox and Micron are 15% and 10%, respectively.
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