Client Solutions revenues rose 190% YoY in fiscal 3Q17
In fiscal 3Q17,[1. fiscal 3Q17 ended March 31, 2017] Western Digital’s (WDC) Client Solutions segment reported revenues of $1 billion, a significant rise of 189% YoY (year-over-year) and a decline of 6.7% quarter-over-quarter.
Client Solutions is WDC’s smallest business segment and accounted for almost 22% of its total revenues in fiscal 3Q17. However, it is the fastest-growing segment for WDC and accounted for only 12% of its revenues in fiscal 3Q16.
Western Digital’s (WDC) Client Solutions business shipped 11.3 exabytes[2. 1 exabyte equals 1 billion gigabytes] (or EB) in fiscal 3Q17 compared to 11.3 EB in fiscal 2Q17 and 8.5 EB in fiscal 3Q16.
WDC sells branded storage solutions products such as USB devices, flash products, and mobile data cards through retail channels in its Client Solutions unit. Strong demand from removable and other flash products drove the segment’s revenues in fiscal 3Q17.
During Western Digital’s fiscal 3Q17 earnings call, its chief operating officer, Michael Cordano, stated, “Our comprehensive portfolio of flash and HDD products performed strongly and it significantly mitigated typical seasonal revenue decline. The strong appeal of our WD, SanDisk and G-Technology brand continues, demonstrated by ongoing consumer preference for our products on a global basis.”
TAM of $8 billion
Western Digital (WDC) expects the TAM (total available market) in the Client Devices space to rise from $7 billion in 2016 to $8 billion by the end of 2020. Demand for storage in smartphones is expected to rise due to the increasing user base on social media platforms such as Facebook (FB), YouTube (GOOG), Snapchat (SNAP), and Twitter (TWTR).
In fiscal 2Q17, WDC launched several products such as the 4 TB (terabyte) My Passport and the 8 TB My Book hard drives for personal computer users. WDC also unveiled the 4 TB hard drive for Apple’s (AAPL) MacBook users.