News
 

Bookmark and Share

(1) 

Shipments of hard disk drives declined considerably in the first half of calendar 2013 due to slow sales of personal computer. While the pressure from underperforming PC market will remain, financial analysts see bright future for top hard drive makers, Seagate and Western Digital. Analysts believe that both companies will benefit from the rise of solid-state drives and growing sales of non-PC HDDs. Moreover, both will sustain margins by limiting output.

“We continue to believe the HDD industry bottomed in first half of 2013, consistent with comments from WD, Seagate, and other suppliers. The PC-related risk has faded in importance for the HDD stocks, since non-PC HDD sales are now eclipsing PC HDD sales led by double-digit unit growth for enterprise and branded drives. Seagate is well-positioned to outgrow the industry in FY14 driven by organic investments in hybrids, enterprise and client SSDs, and services,” said Joe Wittine, an analyst with Longbow Research, in a note to clients, reports Tech Trader Daily.

Traditionally, sales of hard disk drives in the second calendar quarter are up by 3% - 7% sequentially. However, this year the declining market of personal computers significantly affected the markets of PC components and the hard drive market contracted by 2% - 3%, to approximately 132 – 133 million of units in the quarter.

During the second quarter of 2013, Seagate sold around 53.8 million of hard drives, a decline of 1.9 million in the previous quarters. Western Digital managed to sell 59.896 hard drives in calendar Q2 2013, or about 280 thousand lower than in the previous quarter. Toshiba Corp. most likely shipped around 19 million hard disk drives during the quarter, which is around one million units lower than in Q1 2013.

Despite lower sales, neither Seagate nor WD lost money during the quarter. That situation is expected to continue going forward thanks to the fact that both companies have intentions to sustain their profit margins by limiting supply of hard disk drives, according to the analyst.

“Supply/demand fundamentals are attractive with the industry fully consolidated, allowing Seagate and WD to defend industry gross margin at 27% - 32% and allow any future capacity additions to lag demand,” said Mr. Wittine.

Tags: Seagate, WD, HDD, Western Digital, Toshiba, Business

Discussion

Comments currently: 1
Discussion started: 09/29/13 08:12:38 AM
Latest comment: 09/29/13 08:12:38 AM

[1-1]

1. 
Simply put...Seagate and WD are effectively price fixing the HDD market. Maybe if they had just opened their eyes a bit sooner, they wouldn't be so far behind in the SSD market. Now they are gonna keep squeezing and squeezing til they every last drop of profit out of the HDD market...THEN they'll get serious about SSDs by buying their way into the ssd related tech and IP like they've started doing already. Only time will tell if it was worth the delay...meanwhile the HDD consumers (aka us) will continue to take it up the *** by paying more. Personally I hope they both lose their *** by arriving late to the ssd party.
/end rant
1 0 [Posted by: Zaxx  | Date: 09/29/13 08:12:38 AM]
Reply

[1-1]

Add your Comment




Related news

Latest News

Monday, April 14, 2014

8:23 am | Microsoft Vows to Release Xbox 360 Emulator for Xbox One. Microsoft Xbox One May Gain Compatibility with Xbox 360 Games

Tuesday, April 1, 2014

10:39 am | Microsoft Reveals Kinect for Windows v2 Hardware. Launch of New Kinect for Windows Approaches

Tuesday, March 25, 2014

1:57 pm | Facebook to Acquire Virtual Reality Pioneer, Oculus VR. Facebook Considers Virtual Reality as Next-Gen Social Platform

1:35 pm | Intel Acquires Maker of Wearable Computing Devices. Basis Science Becomes Fully-Owned Subsidiary of Intel

Monday, March 24, 2014

10:53 pm | Global UHD TV Shipments Total 1.6 Million Units in 2013 – Analysts. China Ahead of the Whole World with 4K TV Adoption

10:40 pm | Crytek to Adopt AMD Mantle Mantle API for CryEngine. Leading Game Developer Adopts AMD Mantle

9:08 pm | Microsoft Unleashes DirectX 12: One API for PCs, Mobile Gadgets and Xbox One. Microsoft Promises Increased Performance, New Features with DirectX 12

3:33 pm | PowerVR Wizard: Imagination Reveals World’s First Ray-Tracing GPU IP for Mobile Devices. Imagination Technologies Brings Ray-Tracing, Hybrid Rendering Modes to Smartphones and Tablets

2:00 pm | Nokia Now Expects to Close Deal with Microsoft in Q2. Sale of Nokia’s Division to Close Next Month