Seagate and Western Digital complain about the decline in sales

Seagate and Western Digital complain about the decline in sales of HDD and SSD: “The situation continues to deteriorate”

Western Digital Corporation combines the production of hard disk drives and solid state drives. It reported results for the previous fiscal quarter in early August, but the CEO said this week the situation continues to deteriorate and now he’s not confident the company will complete the current quarter with forecast sales of 3.6 to 3.8 billion US dollars. Competitor Seagate also noted that demand for hard drives continues to decline.

    Image source: WDC

Image source: WDC

This was announced by Western Digital boss David Goeckeler at a technology conference Goldman Sachs, “Situation is getting worse”, as the decline in demand for solid-state storage is compounded by negative price dynamics in the relevant market. Industry analysts are unanimous in their forecasts for WDC’s revenue of $3.7 billion in the current quarter so far, and the company’s CEO is reluctant to officially downgrade his August guidance.

SSD prices have plummeted over the past month, according to a Western Digital executive. Since the demand is also reduced quantitatively, this has the greatest adverse effect on the turnover of the company. All of this, Gekeler added, will appear to force Western Digital to delay the start of production at its next new facility. Even storage buyers among the major cloud providers are cautious, and the Chinese economy remains very difficult and shows no signs of a quick recovery.

Just two weeks have passed since Seagate Technology revised its revenue guidance for the current quarter down to $2.1 billion from $2.5 billion, a tech conference admitted at a technology conference Goldman Sachs CEO Dave Mosley, hard drive market conditions have not improved. Demand in the Chinese market continues to weaken, management remains concerned. “Tactically everyone is taking a break now” — explained the head of Seagate. He added that hard drive demand has fallen in almost all segments except for the largest models. Buying in the corporate segment has stalled and the consumer segment is unsupportive, which Mosley said is generally atypical for this time of year.

He cannot say with certainty whether the situation for manufacturers in the hard disk market will improve in the fourth calendar quarter, but expressed the opinion that the industry is facing a correction that will last several quarters. According to the company boss, concrete forecasts will only be possible in a few weeks. Seagate has already been forced to reduce the burden on companies to balance supply and demand.

About the author

Dylan Harris

Dylan Harris is fascinated by tests and reviews of computer hardware.

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