What Does Western Digital Offer That Apple Does Not?

Apple (AAPL) and Western Digital (WDC) draw investors for their hardware, which remains in strong demand. However, the two companies sit on opposite ends of a pricing divide. Apple finds itself paying more for the memory inside its devices, while Western Digital is charging more for its hard disk storage. So what did each company last tell shareholders to expect?

Apple Guided Slower Growth, Western Digital Higher Sales

Apple warned shareholders to prepare for a deceleration. During its fiscal Q3 2026 call, the company forecast September quarter revenue growth of 9% to 11%, stepping down from 16% in the June quarter. Executives attributed the slowdown to currency pressures and supply constraints affecting the iPhone, Mac and iPad. Despite these bottlenecks, the iPhone and Mac sold better than Apple had planned for. The September quarter has since ended, and Apple has not yet reported it.

Western Digital set a higher bar. On its fiscal Q4 2026 call, the company forecast revenue of $4.1 billion, plus or minus $100 million, for fiscal Q1 2027. This marks a sequential increase from the $3.75 billion Western Digital had reported for fiscal Q4 2026.

The two companies diverge sharply on costs. Apple noted it reluctantly raised prices because memory costs were climbing, adding that it expected to pay even more for memory in the September quarter. Meanwhile, Western Digital reported its average price per terabyte of storage rose by a high-teens percentage from a year earlier in fiscal Q4 2026. Over the same period, Western Digital’s cost per terabyte fell about 8%.

Where Does Western Digital Lead Apple?

Western Digital currently outpaces Apple in growth, maintains a slightly wider operating margin and carries less debt. Western Digital’s revenue grew 36% over the last twelve months, compared with 14.2% for Apple. That gap widens over a three-year horizon, with Western Digital averaging 29% a year and Apple recording 6.9%.

The operating margin for Western Digital sits at 36%, just above Apple’s 33%. Debt remains small relative to market value at both companies, checking in at 0.7% for Western Digital and 1.7% for Apple.

Western Digital appears far cheaper on earnings, trading at 15.3 times against 38.3 times for Apple. However, that comparison is not entirely fair. Western Digital reported net income of $9.3 billion over the last twelve months, which is about double its operating income of $4.6 billion. Consequently, gains outside of core operations lifted Western Digital’s earnings and lowered its P/E.

What Does Apple Offer That Western Digital Does Not?

Apple benefits from more than one source of sales. The iPhone brought in $54.3 billion of Apple’s $109.4 billion in June quarter revenue, while services added another $30.7 billion. Western Digital relies far more heavily on a single group of buyers: cloud customers accounted for 89% of its fiscal Q4 2026 revenue.

Moreover, Apple is slightly cheaper against its sales. Investors currently pay $10.60 for each dollar of Apple’s yearly revenue and $11.00 for each dollar of Western Digital’s.

Recent trading has made Western Digital the rougher stock to hold. It lost 30% over the past three months, while Apple stock returned 6.6%. Over the past twelve months, however, Western Digital stock returned 224% against 32% for Apple stock.

Comparing the fundamental metrics of both businesses, Western Digital comes out ahead with faster growth, a slightly wider operating margin and less debt. Yet Apple remains a little cheaper against sales and commands more than one large source of sales. Looking ahead, when Western Digital reports fiscal Q1 2027, revenue below $4.0 billion, the low end of its forecast, would serve as the first sign of weaker demand than management expected.

Does This Mean You Should Act On AAPL?

Our purpose is to inform you with unique data so you make the right investment decisions. That said, betting on a single stock is always risky, no matter which direction you choose.

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