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Seagate becomes the proud new owner of Samsung’s HDD biz

Posted at 20 December 2011 16:36 CEST by Justin_Massoud

Seagate has finalized its acquisition of former rival Samsung’s hard disk drive manufacturing business, officially shrinking the number of major HDD makers by one.

According to Seagate, the deal places “select elements” of Samsung under its banner. The California company touted in particular its new control over Samsung’s M8 line. The consumer electronics and storage company debuted the 1TB, 2.5-inch M8 Spinpoint this summer.

“Together, Seagate and Samsung have aligned our current and future product development efforts and roadmaps in order to accelerate time-to-market efficiency for new products and position us to better address the increasing demands for storage,” said Steve Luczo, Seagate president and CEO. “It is an exciting time in the industry with rapidly evolving opportunities in many markets including mobile computing, cloud computing, and solid state storage.”

Seagate also gained access to Samsung’s SSD and hybrid drive semiconductor line and plan to incorporate those additions in future iterations of its own devices. In turn, Samsung-branded consumer electronics will host Seagate HDDs.

Originally announced in April, the deal would have solidified Seagate’s no. 2 spot behind market leader Western Digital. Following the devastating floods across Thailand, however, Seagate is now expected to become the de facto HDD king.

Western Digital’s HDD output was severely impacted by the disaster, leading the company to admit it likely would not be able to meet consumer demand for the end of 2011. While Seagate didn’t walk away with dry feet either, the damage to its HDD shipment figures wasn’t as severe – an expected 9 million quarterly drop-off compared to its chief rival’s 34 million slide.

Western Digital announced in March it would acquire Hitachi GST. The still-pending deal has flustered Hitachi President Hiroaki Nakanishi, who admitted on Tuesday he was “very concerned” about China’s say. (via Seagate)

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There are 7 comments

olddancer
MyCE Senior Member
Posted on: 20 Dec 11 19:25
    Wonderful, absolutely Wonderful.
    The only quality products that Samsung made were their hard drives.
    Now that there are only 2 manufacturers of HDs our choices have been narrowed to junk and crap.
    redk9258
    MyCE Junior Member
    Posted on: 20 Dec 11 22:20
      Well this sucks. I was hoping they would keep Samsung as a separate brand and just take some of the technology to use in their own drives. I guess they will do like when they bought out Maxtor. They will slap the name on a crappy Seagate drives. Might as well go ahead and buy Western Digital too. Then they can take credit for all crappy drives! I just read somewhere that they are lowering the length of warranty. That must tell something about how they feel about quality.

      I wish the prices of drives weren't do high right now. I'd buy a couple of real Samsungs while I could.
      ivid
      MyCE Resident
      Posted on: 20 Dec 11 23:00
        In my experience Seagate make good drives. Aside from the firmware debacle a few years ago they have a good track record in my book. My company has been shipping our products with 1000+ of their drives per year for years. Very low RMA and failure rates. That's my experience anyhow.

        Too bad we can't get the Enterprise drives at all right now, they're all being hoarded by the HP's and DELL's etc..
        coolcolors
        MyCE Resident
        Posted on: 23 Dec 11 01:10
          Quote:
          Originally Posted by ivid
          In my experience Seagate make good drives. Aside from the firmware debacle a few years ago they have a good track record in my book. My company has been shipping our products with 1000+ of their drives per year for years. Very low RMA and failure rates. That's my experience anyhow.

          Too bad we can't get the Enterprise drives at all right now, they're all being hoarded by the HP's and DELL's etc..
          And unfortunately those bad drives are still out there Seagate from what I remember haven't recalled those drives they just say it's a Firmware update that is needed. I highly doubt that claim is and less they a white lie. No drives last forever anything with electrical components eventually fail over time and sometimes in the worst timing.
          tmc8080
          MyCE Resident
          Posted on: 24 Dec 11 16:21
            I think the WD/Hitachi deal should hinge on finding an alternative country of mfg. origin as a replacement for Thailand which is just as cost effective-- otherwise, the combined company has no chance to catch up to Seagate and will bankrupt themselves slashing prices.


            ** At the high end of the price gouging that's going on.. you could make the drives in the USA & turn a profit! ($200 for a 1tb drive vs $60 from Thailand).
            UTR
            MyCE Resident
            Posted on: 24 Dec 11 17:39
              Quote:
              Originally Posted by ivid
              In my experience Seagate make good drives. Aside from the firmware debacle a few years ago they have a good track record in my book. My company has been shipping our products with 1000+ of their drives per year for years. Very low RMA and failure rates. That's my experience anyhow.

              Too bad we can't get the Enterprise drives at all right now, they're all being hoarded by the HP's and DELL's etc..
              I have had more Seagate hard drives fail on me than I can remember. Definitely far more than any other brand.
              _chef_
              MyCE Resident
              Posted on: 03 Jan 12 12:22
                Sad to see the mfg list decreasing.

                Lets hope they will find a way back out of the broker rating jerked biz into the real world....

                Would give us back Q products independently from all those money greeding sucker$.

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