HDD shipments continue to fall for Seagate
US-based (SPY) Seagate has a share of ~37% in the HDD (hard disk drive) market. HDDs are used in PCs (personal computers), and HDD shipments have been negatively affected in the past few quarters, driven by declining sales in the PC market.
In fiscal 4Q16, Seagate (STX) shipped 36.8 million HDD units, which represented a record 61.7 exabytes of storage. Average capacity per drive also rose to a record 1.7 terabytes per drive with an average selling price (or ASP) of $67. The ASP has been at a record high since the Thailand floods in 2011.
Inventory levels in fiscal 4Q16 were lower 6% quarter-over-quarter with finished goods inventory down 21% as well. The CEO of Seagate, Stephen Luczo, stated, “These inventory levels represent sequentially improved inventory turns and lean production schedules as we ramp our new HDD products throughout the portfolio.”
In fiscal 2016, Seagate shipped 233 exabytes with average capacity per drive up 29% YoY (year-over-year).
HDD sales have been falling since 2009
Seagate’s HDD sales fell to 469 million units in 2015 compared to 560 million units in 2009. In 2015, this segment saw a YoY decline of 17% over 2014. Seagate’s HDD shipments fell 21.8% YoY in fiscal 3Q16 to 39.2 million units.