HDD Market Share -
Rankings in 2Q12
1/WD: 45% 2/Seagate: 42% 3/Toshiba: 13%
Six months after losing the top spot in the global HDD segment
due to the Thai flooding disaster, Western Digital Corp. in the second quarter
recovered its market lead from chief rival Seagate Technology.
Worldwide HDD Shipments Forecast
and Market Share
(Shipments in Millions of Units)
Western Digital produced approximately 71.0 million HDD
units in the second quarter, including production from Hitachi GST, a company
acquired by Western Digital earlier in the year. Revenue for Western Digital
amounted to $4.8 billion - a company record.
comparison, Seagate shipped 65.9 million HDD units during the same period, with
revenue reaching $4.5 billion - also a record in Seagate's books.
Western Digital lost its No. 1 unit shipment ranking to
Seagate in the fourth quarter of 2012 after flooding in Thailand damaged its HDD
manufacturing facility, The company now has fully recovered from the disaster,
allowing it to sharply increase shipments of HDDs for notebook PCs, up 28% from
the first quarter. Western Digital is on track to retain the top spot in
shipments and revenue for the third quarter.
Total HDD shipments for the second quarter amounted
to 157.0 million units, up 8% from 145.1 million in the first quarter.
Digital enjoyed the biggest shipments share at 45%, followed by Seagate with 42%
and Toshiba with 13%.
Total HDD revenue for the second quarter hit $10.3
billion, compared to $9.6 billion in the first quarter.
Seagate, the market revenue leader for most of the time in the past decade, is
forecast to sit in the runner-up spot again in the third quarter. Despite its
fall to No. 2 in the second quarter, Seagate is the leader in the desktop,
enterprise and non-PC segment, such as consumer electronics.
Gross margins continued to remain high for both Western Digital and Seagate,
indicating flush results, despite being a small decline in the second quarter.
Western Digital's gross margin of 31% was 1% lower than in the first quarter,
but still much higher than the previous record of 26.2%, seen some time ago in
the fourth quarter of 2009.
The slight decrease in margin
was likely caused by pricing pressure three weeks before the end of the second
Seagate's gross margin, in comparison, fell to 33%, down
from 37%, but also still in better shape than the pre-flood level of 19.3%. Part
of Seagate's lower margin was the result of product-specific concerns, such as
noise issues in some desktop HDDs as well as contamination problems with some
mission-critical enterprise HDDs. Both required a rework on Seagate's part,
adding to costs. The company says the matters have been resolved, however, and
third-quarter margins should remain in the 30% range.
tussle between Western Digital and Seagate - one of the historic continuing
rivalries in the technology industry - is not about to ease up anytime soon. In
particular, the fourth quarter will be a tossup, and the industry champion by
then will depend on how well each company executes for the remainder of the
year, coupled with the market performance of enterprise and consumer PC
solutions on which HDDs depend.
The third player in the HDD
storage segment, Toshiba of Japan, produced 20.1 million HDD units and posted
approximately $1.1 billion in revenue in the second quarter.