Seagate closed a great quarter

Both the revenue and profit of the hard drive manufacturer increased significantly compared to the previous year. Turnover stood at almost around $ 3 billion, almost exactly 20 percent more than last year’s $ 2.5 billion. The associated profit increased significantly to a greater extent. The $ 482 million left in the coffers is 190 percent higher than the 166 million a year earlier.

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The favorable numbers are mainly due to the unbroken data center needs. As various market research and reports have shown, an unusually large number of servers (and storage) have run out in recent months, with a significant portion still receiving hard drives. The company’s report notes that demand for so-called nearline models within large enterprise products has also increased. According to Seagate, there has been a healthy and stable demand for cloud data centers over the past year and a half, which has also had a positive impact on numbers.

It is an interesting question what is the situation with products intended for clients, including personal computers. The company continues to be deeply silent on this, as all it has said is that the decline in so-called legacy (consumer) markets appears to be slowing down at a rapid pace, which in turn is more than offset by growing corporate demand.

What this means numerically is not clear, as Seagate has not been disclosing sales by market for some time, talking about only two product groups: HDDs and other products. The latter mainly includes SSDs and ancillary data center products. The difference in weight between the two categories is well illustrated by the fact that while nearly $ 2.74 billion came from purely hard drives, only $ 276 million came from other categories that include SSDs.

The deliberate cover-up is certainly due to the significantly lower demand for client hard drives that has emerged in recent years. SSDs, which have been reduced to affordable levels, have completely eliminated hard drives from most PCs, and although Seagate also offers flash-based drives, the brand still has a significantly lower weight in this market, one reason being much more competition. No wonder the company has been focusing more on data-centric developments for some time now, as demand for higher-capacity, cost-effective hard drives is sure to be healthy for a long time to come in this market.


Source: HWSW Informatikai Hírmagazin by www.hwsw.hu.

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