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Seagate 2.5″ HDD market now recovered from flood

Posted at 20 April 2012 12:17 CET by Seán Byrne

Seagate announced that its 2.5″ hard disk market has almost completely recovered to pre-flood levels. While this news may seem good at first for consumers, for Seagate the short supply helped push prices up about 28%, leading to soaring profits for Seagate. Seagate reported that its net income was 4.5 times higher than the same period a year ago. Its revenue in April also increased 165% over April 2011, partly helped by the integration of Samsung’s HDD business.

While the laptop HDD market is near full recovery, the desktop hard drive market is likely to remain in short supply through the second half of the year. Seagate also said that it is shipping drives with an average of 15% higher capacity than the competition. With a higher price tag on larger capacity drives, this also meant it was earning more per HDD shipped than the competition.

Finally, Seagate has also managed to secure long-term agreements with OEMs with prices favourable to Seagate, so with higher than average prices and these agreements lasting 12 to 18 months, this along with improved production also guarantees strong profits for Seagate.

Unfortunately for the consumer, this means that hard disk prices are unlikely to fall to pre-flood levels for another year or two, especially desktop HDDs which are still in short supply.

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There are 6 comments

coolcolors
MyCE Resident
Posted on: 20 Apr 12 15:07
    Quote:
    so with higher than average prices and these agreements lasting 12 to 18 months
    Something to discourage buying drives any time soon....
    debro
    Blown to smitherines
    Posted on: 20 Apr 12 17:52
      Bugger ... I have office PC's that need replacing ... FFS.

      Maybe now is the time to start considering Dumb terminals and virtualisation ....
      erzug
      MyCE Junior Member
      Posted on: 20 Apr 12 20:30
        I'm happy to see it. Now maybe we won't be getting anymore watered-down products from Seagate.
        ivid
        MyCE Resident
        Posted on: 20 Apr 12 21:10
          Those 12 - 18 month agreements are exactly why my company couldn't get the 2.5" enterprise SATA drives for several months due to the shortages.

          These agreements guarantee that the OEMs get priority over the rest of us in the market when there are shortages.
          tmc8080
          MyCE Resident
          Posted on: 20 Apr 12 23:47
            And.. at some point next year there will be a governmental probe about market manipulation and price gouging by hard drive companies which may lead to one or two HDD companies being broken up.. or facing very high fines.
            DukeNukem
            MyCE Resident Commenter
            Posted on: 26 Apr 12 18:47
              Now maybe Seagate can get moving on a 2TB 2.5" HDD. I've already filled up my 1.5TB 2.5" in my HTPC with 66 ripped Blu-ray movies (yes, I own the movies).

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