Seagate suffers from reduced demand — sales figures below expectations

HDDs have always been the main choice of storage until SSDs were available to consumers. Even then, the cost-per-GB of HDDs were much better than SSDs, making them a viable choice for bulk storage. However as SSDs are getting cheaper, sales of HDDs are dropping, but overall the PC market is also slowing down. Seagate’s revenue has dropped 13 percent quarter-over-quarter and 22 percent year-over-year thanks to these factors, forcing them to revise their revenue projections from $2.7 billion to $2.6 billion, and its non-GAAP gross margin from 27 percent to 23 percent.

The silver lining is Seagate has been seeing an increase in demand for its 8TB enterprise-level drives, which indicate the growing market of cloud services. And while the sales figures are below expectation, Seagate did ship 39 million drives worth 40 percent of the HDD market in its third fiscal quarter.

Source: TweakTown

Pokdepinion: I have never used a Seagate HDD myself, but I have heard a lot of complaints regarding the reliability of Seagate’s consumer desktop HDDs. I wonder if those complaints may have contributed to the less-then-expected sales. Or has SSDs replaced all HDDs in your PCs?