Top Two Hard Disk Drive Makers Control More than 50% of the Market

The No.1 Hard Disk Drive (HDD) maker Seagate achieved a 5.1% point market-share gain in the second quarter of 2006 compared to the first, mainly due to the Maxtor acquisition. Seagate accounted for 34.1% of the 98.6 million disk drives shipped worldwide in the second quarter, according to iSuppli.

Number-two-ranked HDD maker Western Digital upped its share to 19.5% in the second quarter compared to 18.5% in the first. Hitachi Global Storage Technologies (GST) held onto its third-place ranking with a 15.1% share, up from 14.4% in the first quarter.

Samsung Electronics climbed into No.4 position in the second quarter, up from fifth in the first quarter, with a 10.5% share of HDD unit shipments, up from 8.6% in the first.  

HDD Supplier Ranking in Q2, 2006 

Q2 '06 Rank

Company

Q1 '06 Share

Q2 '06 Share

Percentage Change

1

Seagate

29.0%

34.1%

5.1%

2

Western Digital

18.5%

19.5%

1.0%

3

Hitachi GST

14.4%

15.1%

0.7%

4

Samsung

8.6%

10.5%

1.9%

5

Toshiba

9.3%

8.5%

-0.8%

6

Fujitsu

6.8%

6.8%

0.0%

7

Maxtor

11.9%

3.8%

-8.1%

8

Excelstor

1.2%

1.5%

0.3%

9

Cornice

0.4%

0.3%

-0.1%

10

GS MagicStore

0.0%

0.0%

 

 

Other

0.0%

0.0%

 

Source: iSuppli Corp. October 2006

Evidence of the market share grab could be seen in the HDD makers’ second-quarter results, which revealed falling Average Selling Prices (ASPs), rising inventories and shrinking gross margins for some suppliers.

Seagate said the gross margin for its own-branded products amounted to 23.4% in the second quarter. However, with the newly acquired Maxtor’s margin at negative 12.9 percent, Seagate’s overall margin was diluted to 18 percent. Seagate reported an ASP of $75 for the second quarter, noting its own products had an ASP of $77, but that Maxtor’s were in the $65 range.

Western Digital reported a gross margin of 18.8%, down slightly from 19.3% in the first quarter. 

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