Myce.com Latest Updates

Seagate increases profits with 315% – thanks to keeping prices high

Posted at 01 November 2012 17:27 CET by Jan Willem Aldershoff

If the saying ‘one man’s meat is the other man’s posion’ is valid for one company, then it’s Seagate today. The company has reported a whopping increase in profits for the first quarter of the company’s fiscal year of 2013. The company profited big time of the supply issues which competitor Western Digital had after the floods in Thailand destroyed some of its factories.

That was a good moment for Seagate to slash warranties and increase  prices which resulted profit increase of 315%. Both Western Digital and Seagate increased prices and reduced warranties but fortunately for consumers prices have come down considerably the last few months due to competition of SSD drives,  a highly competitive market.

Click to share

There are 17 comments

CDan
MyCE Resident
Posted on: 01 Nov 12 22:18
    I think you mean 2012 profits, not 2013.
    And when I look at the referenced article I see a drop in profits for Q1 2012. And I don't see anything to support the "315%" claim. I think someone might be reading that graph backwards.
    tmc8080
    MyCE Resident
    Posted on: 02 Nov 12 00:50
      1tb hard drives were $50 street price, 4tb hard drive were $170.. lowest price now?
      $70 for 1tb, $249 for 4tb drives. Yes, hard drive companies have manipulated prcies even though they have cheaper thailand labor restored and are at pre-flood capacity/costs of production.

      The silver lining is that the PC biz is in a down-cycle so that will keep hard drive demand limited to a range based on prices. I even doubt that we will see any pre-flood street prices restore for black friday..
      TSJnachos117
      MyCE Senior Member
      Posted on: 02 Nov 12 02:06
        Pre-flood sale during black friday? Why? As far as the mean people in the corparate world are concerned, that flood was the best thing to ever happen to them ever (or at least the best thing to happen since the last time they made a whole sh**-load of money). Perhaps they will return after SSDs have become so common, they don't even count as news.
        DoMiN8ToR
        Management
        Posted on: 02 Nov 12 09:16
          @CDan, it's the fiscal year 2013. Another site might explain it better:

          http://www.theinquirer.net/inquirer/news/2221730/seagate-sees-300-percent-rise-in-profits-thanks-to-thai-floods
          ChristineBCW
          MyCE Die Hard
          Posted on: 02 Nov 12 13:35
            I saw 2Tb HDDs being offered for $79 after a mail-in rebate though.

            I think the extremely high-priced HDDs can prop up a year's profit for one or two or three companies, but all the others are being killed by it because of those same high prices. One day, Seagate could wake up and notice their main customers are gone. "But we make huge profits if we can sell just this ONE hard drive!!" Yeah. Right. How's that future-vision paying off?
            tmc8080
            MyCE Resident
            Posted on: 03 Nov 12 16:55
              None of these companies have thown down the dough on a new factory yet which puts that HAMR technology hard drive an extra year's delay. Meanwhile, at least two companies have thrown down 5 - 7 billion dollars betting on SSD drives as a future..

              The day hard drive companies wake up and see 4tb SSD drives competing with them could come sooner than they think! Samsung alone could become the new SONY in marketshare.
              headquarter84
              CD Freak
              Posted on: 04 Nov 12 06:33
                Well, I didn't really notice that to be honest, probably cause prices here in the Persian Gulf region are already high as it is and barely drop when it comes to technology, we take ages to import some of the new technologies while we get some others instantly at magnified prices.

                I've got myself a sweet couple of storage devices last week, a 3TB Seagate Backup Plus for $143 and a 240GB Kingston HyperX 3K for $230... the 4TB is available from WD with multiports (USB3, ESATA and Thunderbolt IIRC), the last time I checked it was at a massive $735. I don't know how that measures compared to prices in the rest of the world, but for us here, that's quite expensive.
                Kenshin
                MyCE Resident
                Posted on: 04 Nov 12 10:32
                  Be honest. Wouldn't you sell 2TB and 4TB HDD's at the highest prices possible after competitor's factories are destroyed by flood if you were owners of Seagate? Disasters either by humans or nature, inside or outside, are often largest opportunities to make a fortune whether in a preindustrial North American native tribes or in post-war Japan. Even deaths from suicide and cancer can be big businesses for their survivors.
                  tmc8080
                  MyCE Resident
                  Posted on: 11 Nov 12 14:49
                    There are multiple sides to this coin (3) the edge btw the two sides shows this to be a fine line between making an honest buck and profiteering.. and the Tech industry is no position to be arrogant with their pricing for too long. Tech is not an essential to daily living-- food, shelter, basic necessities (ie toilet paper), transportation are.

                    A shot of good news is there is going to be a predictor of 2013 street pricing since one B&M is going to have a 2tb external drive for $65, come this Black Friday. We can possibly assume that all other prices will adjust within 10% of this come 2013.

                    1tb drives $50, 2tb, $65, 3tb 79, 4tb, $99. Then long time coming HAMR drives or SSD hybrids.. I'm thinking they might find a way to include the SSD portion as part of a single partition and "RESERVE" it for operating system files with special software/firmware-- this kind of drive would be much more attractive to me than a separate logical drive which could run out space on an O/S drive.
                    Chad_Bronson
                    MyCE Senior Member
                    Posted on: 07 Dec 12 18:11
                      Quote:
                      Originally Posted by DoMiN8ToR
                      Seagate increases profits with 315% - thanks to keeping prices high.

                      [newsimage]http://static.rankone.nl/images_posts/2012/03/Q1OeP.jpg[/newsimage]If the saying 'one man's meat is the other man's posion' is valid for one company then it's Seagate.


                      Read the full article here: http://www.myce.com/news/seagate-inc...es-high-64605/


                      Please note that the reactions from the complete site will be synched below.
                      Seagate.

                      ...

                      HAHAHAHAHA!

                      Thanks for the laugh, DoMiN8ToR! That's made my day! I wouldn't touch Seagate hard drives even if you paid me.

                      On a less sarcastic note; if the prices of hard drives are being vastly overinflated for blatant profiteering by Seagate - People will migrate to a different brand who can offer them a better deal.

                      The hard drive industry has become so saturated with makes and models that there really is very little difference between them. In my own very limited experience with a few hard drive manufacturers, it has been Western Digital that has been the best (except externals - two DOAs ) as well as Maxtor.

                      I've had no less than three Seagate hard drives fail on me - All within the first year of use. Seagate can rot in hell, for all I care.

                      In fact I'm using a Western Digital now - 750GB one. I think my next upgrade will probably be a Samsung drive - hard drives are so cheap now...
                      Chad_Bronson
                      MyCE Senior Member
                      Posted on: 07 Dec 12 18:13
                        Quote:
                        Originally Posted by tmc8080
                        1tb drives $50, 2tb, $65, 3tb 79, 4tb, $99.
                        Are you sure those prices are right; even on a "Black Friday"? The prices seem very low for such a huge hard drive
                        alan1476
                        Senior Moderator, Software Editor and Head of Promotions
                        Posted on: 07 Dec 12 18:42
                          Spinners are history, they are relegated to data drives even now. With the current low volume of Desktop Computers being sold, SSDs are the only way to go in a laptop. So maybe if you buy a desktop, you might have a spinner, but if you build a desktop you would be silly not to have an SSD.
                          Chad_Bronson
                          MyCE Senior Member
                          Posted on: 07 Dec 12 20:01
                            Quote:
                            Originally Posted by alan1476
                            Spinners are history, they are relegated to data drives even now. With the current low volume of Desktop Computers being sold, SSDs are the only way to go in a laptop. So maybe if you buy a desktop, you might have a spinner, but if you build a desktop you would be silly not to have an SSD.
                            I'm sorry, but I disagree with you there, Alan. Though the obvious benefits SSD drives over HDD are numerous, I don't think now is the right time to be investing in an SSD drive - They're simply far too expensive over a HDD drive for what you get, and their relability seems to be mixed, from what I've read. They're too new a technology to be investing in right now. Hard Drives have been around for an eternity - and as such, reliable.

                            I'd invest in a hard drive right now because they're at their peak - and perhaps, in about five years time when I come to upgrade or buy a new desktop, I'll consider then to buy an SSD - when the previous SSD I would have bought now is virtually obsolete.
                            alan1476
                            Senior Moderator, Software Editor and Head of Promotions
                            Posted on: 07 Dec 12 21:35
                              Thats what makes the world go around, if everyone had the same opinion, the world would be a dull place, but I havent seen any advancement in spinners other than the price of a VRaptor being cut in half. Yes SSDs are new and exciting and IMO, the most important upgrade you can put in any computer to improve on its performance, even the " Previous SSD you would have bought " is better than any spinner.
                              Chad_Bronson
                              MyCE Senior Member
                              Posted on: 08 Dec 12 18:41
                                Quote:
                                Originally Posted by alan1476
                                Thats what makes the world go around, if everyone had the same opinion, the world would be a dull place, but I havent seen any advancement in spinners other than the price of a VRaptor being cut in half. Yes SSDs are new and exciting and IMO, the most important upgrade you can put in any computer to improve on its performance, even the " Previous SSD you would have bought " is better than any spinner.
                                Agreed

                                Maybe spinners are approaching their end of useful life in terms of no new innovation can be made for them, perhaps - but I think, at the moment, SSD drives are just too expensive - and most folk won't really benefit from the added features an SSD drive can offer.

                                A HDD is fundamentally problematic because it's magnetic and on spinners (mechanical, meaning they're more prone to breaking down) but at least HDD technology works, and most of the time we know when it goes just before it is about to go.

                                There are some nasty scare stories floating about the internet about SSD drives going 'bang' and losing a heck of a lot of data - and, from what I understand, aren't SSD useless for small files?
                                DrageMester
                                Retired Moderator
                                Posted on: 08 Dec 12 19:26
                                  Quote:
                                  Originally Posted by Chad_Bronson
                                  - and, from what I understand, aren't SSD useless for small files?
                                  Try reading a thousand small files from an SSD and from a HDD and then tell us which drive is more "useless" than the other.
                                  (Hint: The SSD has access times several orders of magnitude faster than a HDD)
                                  CDan
                                  MyCE Resident
                                  Posted on: 09 Dec 12 00:53
                                    Someone needs to get a new SSD and put an end to his fear and loathing. Once you do you'll never go back.

                                    Post your comment

                                    You need to register before you can comment

                                    Like us

                                    Most popular headlines

                                    Nexus Player to be codenamed Fugu and powered by Intel Atom SoC (updated)

                                    Traces in the Android source code give us hints that the next Nexus device will ...

                                    Free software decrypts and converts Blu-ray disc to 2% of its size with nearly same quality

                                    The Spanish company CineMartin claims to have developed software that makes it p...

                                    Virus scanner Avast 2015 checks router and network security

                                    Anti-virus company Avast released the 2015 version of their virus scanner w...

                                    Windows 7 no longer sold to consumers - all about Windows 8.1 now

                                    Microsoft will no longer sell computers with Windows 7 installed starting t...

                                    First tests of Cinemartin MyBD show it does what it promises

                                    Our firsts with the free version of Cinemartin MyBD indicate that the software d...

                                    See all headlines

                                    Community Activities

                                    Follow Myce.com