August 30 news, according to Taiwan media reports, according to the market research company IHS iSuppli released the "storage market briefing," said the Western Digital 6 months ago due to Thailand's torrential floods and lost the position of the world's hard disk market leader, but In the second quarter of this year, it finally recaptured market leadership from its rival Seagate.
According to IHS statistics, Western Digital produced approximately 71 million hard drives in the second quarter of this year, including HGST's hard drive production that Western Digital acquired earlier this year. Western Digital’s second quarter revenue reached US$4.8 billion, setting a new record.
In contrast, Seagate shipped 65.9 million hard drives in the second quarter and generated revenue of US$4.5 billion, which also set a new record for the company’s own revenue.
According to Fang Shan, an IHS storage system analyst, “Western Digital lost its position as the hard drive market leader in the fourth quarter of 2012 because its hard disk production plant was severely affected by flooding in Thailand. Now Western Digital has The impact of the floods was fully restored, with its second-quarter shipments of laptop hard drives rising significantly, up 28% from the first quarter shipments, Western Digital’s third quarter will continue to be in HDD shipments and revenues. Stay ahead."
The total volume of global hard disk shipments in the second quarter reached 157 million, an increase of 8% from the 145.1 million in the first quarter. Western Digital has the highest share of shipments, reaching 45%; followed by Seagate, with a 42% share of shipments. Toshiba ranked third with 13% of shipments. The total sales of global hard drives in the second quarter were 10.3 billion US dollars, which was higher than the 9.6 billion US dollars in the first quarter.
In the past ten years, Seagate has maintained its leading position in hard disk sales for most of the time and it is expected that it will slip to the second position in the third quarter of this year. Although it slipped to second place in the market in the second quarter, it still holds leading positions in non-PC equipment such as desktops, enterprises and consumer electronics.
Despite the slight decline in the second quarter, Western Digital and Seagate's gross profit margin remained high. Gross margin of Western Digital was 31%, which was a 1 percentage point lower than the first quarter, but higher than the highest record of 26.2% a few years ago. The slight decline in profit margin may be due to the decline in hard disk prices last week before the end of the second quarter.
In contrast, Seagate's gross profit margin in the second quarter fell from the previous 37% to 33%, but it was still higher than the level before the flood in Thailand was 19.3%. The decline in Seagate's gross profit margin was due to noise problems in some of its products, and some business-critical enterprise hard drive products had problems with scratches. Seagate needed to redesign some of the components, causing product costs to rise. However, Seagate said that those problems have been resolved and it is expected that the third quarter gross profit margin will remain at 30% or more.
It is expected that the tight competition between Seagate and Western Digital will not be eased in the short term, but may be aggravated in the fourth quarter. Who will stand in the industry leading position will depend on their performance in the second half of the year and the market performance of corporate and consumer PC solutions.
Toshiba is currently ranked third, with second-quarter shipments of 2.0 million hard drives and sales of approximately US$1.1 billion.
According to IHS statistics, Western Digital produced approximately 71 million hard drives in the second quarter of this year, including HGST's hard drive production that Western Digital acquired earlier this year. Western Digital’s second quarter revenue reached US$4.8 billion, setting a new record.
In contrast, Seagate shipped 65.9 million hard drives in the second quarter and generated revenue of US$4.5 billion, which also set a new record for the company’s own revenue.
According to Fang Shan, an IHS storage system analyst, “Western Digital lost its position as the hard drive market leader in the fourth quarter of 2012 because its hard disk production plant was severely affected by flooding in Thailand. Now Western Digital has The impact of the floods was fully restored, with its second-quarter shipments of laptop hard drives rising significantly, up 28% from the first quarter shipments, Western Digital’s third quarter will continue to be in HDD shipments and revenues. Stay ahead."
The total volume of global hard disk shipments in the second quarter reached 157 million, an increase of 8% from the 145.1 million in the first quarter. Western Digital has the highest share of shipments, reaching 45%; followed by Seagate, with a 42% share of shipments. Toshiba ranked third with 13% of shipments. The total sales of global hard drives in the second quarter were 10.3 billion US dollars, which was higher than the 9.6 billion US dollars in the first quarter.
In the past ten years, Seagate has maintained its leading position in hard disk sales for most of the time and it is expected that it will slip to the second position in the third quarter of this year. Although it slipped to second place in the market in the second quarter, it still holds leading positions in non-PC equipment such as desktops, enterprises and consumer electronics.
Despite the slight decline in the second quarter, Western Digital and Seagate's gross profit margin remained high. Gross margin of Western Digital was 31%, which was a 1 percentage point lower than the first quarter, but higher than the highest record of 26.2% a few years ago. The slight decline in profit margin may be due to the decline in hard disk prices last week before the end of the second quarter.
In contrast, Seagate's gross profit margin in the second quarter fell from the previous 37% to 33%, but it was still higher than the level before the flood in Thailand was 19.3%. The decline in Seagate's gross profit margin was due to noise problems in some of its products, and some business-critical enterprise hard drive products had problems with scratches. Seagate needed to redesign some of the components, causing product costs to rise. However, Seagate said that those problems have been resolved and it is expected that the third quarter gross profit margin will remain at 30% or more.
It is expected that the tight competition between Seagate and Western Digital will not be eased in the short term, but may be aggravated in the fourth quarter. Who will stand in the industry leading position will depend on their performance in the second half of the year and the market performance of corporate and consumer PC solutions.
Toshiba is currently ranked third, with second-quarter shipments of 2.0 million hard drives and sales of approximately US$1.1 billion.
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