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WD, Seagate Recover From HDD Shipment Shortage

By - Source: Tom's Hardware US | B 5 comments

Both Seagate and Western Digital have improved their HDD shipments following the disastrous Thailand flood last year.

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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  • 0 Hide
    hairystuff , 1 May 2012 01:56
    With all that behind us why are disks still expensive.
  • 0 Hide
    whatsthatnoise , 1 May 2012 02:58
    It takes time until it reaches the customer.
  • 0 Hide
    silver565 , 1 May 2012 03:47
    Good to see this. Now a 2TB disk won't cost $180
  • 2 Hide
    shanky887614 , 1 May 2012 04:04
    the wholesale price barely changed so i think its disgusting that the shops are trying to sell them for so much

  • 1 Hide
    jaxxxx , 1 May 2012 07:13
    For the record the CEO of WDC is John Coyne, NOT Jeff.