WD, Seagate Recover From HDD Shipment Shortage

Seagate's CEO Steven Luczo said that more drives are shipping, but the low-point of supply was not in November as previously believed, but "closer to mid-December".

Seagate shipped 61 million drives in the first quarter (13 percent of which were Samsung drives), up from about 47 million units in Q4 of 2011. Western Digital said it shipped about 44 million drives, up from 28.5 million units in the prior quarter. Seagate's revenue climbed to $4.4 billion, the net income was $1.1 billion WD's revenue was $3.0 billion and net income $483 million. Both companies also recently gained in market capitalization again. Seagate currently stands at about $13.11 billion, while WD is at $9.74 billion.

Luczo told analysts that the HDD industry will continue its current pace of recovery. In Q4 2011, a total of 119 million drives were shipped, while Q1 saw estimated total shipments of about 140 million units.  The total available market (TAM) for Q2 will be 160 million drives, 180 million for Q3 and up to 190 million for Q4, according to Seagate. However, Luczo did not say how many drives Seagate will be able to ship in those quarters. The executive noted that "distribution pricing [of hard drives] remains well above historical spreads" and there remains a "a substantial and growing shortfall in unmet exabyte demand resulting from the supply-chain disruptions caused by the floods."

WD's John Coyne was a bit more optimistic and told analysts that "the recovery activities related to both WD operations and those of [its] supply chain partners impacted by the Thailand floods have reached the point where [the company] now [has] the capability to adequately meet anticipated customer demand in the current quarter and beyond."

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  • mrpijey
    Good (even when I know it's partially a lie manipulated by all manufacturers to drive up profit), now take down the prices a notch or two. And improve the quality of your crappy drives as they tend to crash more often than ever.
  • wavetrex
    They've already got us by the balls. It's just that most don't realize it yet.
  • CaedenV
    mrpijeyGood (even when I know it's partially a lie manipulated by all manufacturers to drive up profit), now take down the prices a notch or two. And improve the quality of your crappy drives as they tend to crash more often than ever.

    Prices are already falling ~$10-20/month on 2TB drives, it will not be long now before we start seeing prices where we are use to seeing them again.
  • Other Comments
  • mrpijey
    Good (even when I know it's partially a lie manipulated by all manufacturers to drive up profit), now take down the prices a notch or two. And improve the quality of your crappy drives as they tend to crash more often than ever.
  • captaincharisma
    mrpijeyGood (even when I know it's partially a lie manipulated by all manufacturers to drive up profit), now take down the prices a notch or two. And improve the quality of your crappy drives as they tend to crash more often than ever.


    LMAO ok hot shot then who is the better HDD brand sense apparently you have such bad luck with Seagate and WD unlike the rest of us
  • CaedenV
    mrpijeyGood (even when I know it's partially a lie manipulated by all manufacturers to drive up profit), now take down the prices a notch or two. And improve the quality of your crappy drives as they tend to crash more often than ever.

    Prices are already falling ~$10-20/month on 2TB drives, it will not be long now before we start seeing prices where we are use to seeing them again.