Top Two Hard Disk Drive Makers Control More than 50% of the Market
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.
|
HDD Supplier Ranking in Q2, 2006 |
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|
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 |
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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.
