How Do Western Digital And Seagate Compare On Enterprise Storage Sales?

-6.84%
Downside
68.24
Market
63.57
Trefis
WDC: Western Digital logo
WDC
Western Digital

Hard drive manufacturers Seagate (NASDAQ:STX) and Western Digital (NASDAQ:WDC) each reported relatively weak fiscal Q3 results recently, owing to a steep decline in unit shipments throughout the quarter. [1] [2]

STXvWDC1Unit shipments for both Western Digital and Seagate fell across all divisions – including enterprise storage – indicating a slowdown in demand for hard disk drives. Comparatively, the decline in SSD or flash-based storage was less than the decline in overall revenues. Net revenues for Western Digital and Seagate in fiscal Q3 were down by 21% and 22% on a year-over-year basis, respectively.

Below you can see our full year revenue forecast for enterprise storage revenue and unit shipments for Western Digital and Seagate.

STXvWDC2

As a result of low demand for storage products and resulting pricing pressure on hardware manufacturers over the last few quarters, both Seagate and Western Digital witnessed compressed margins across divisions. Consequently, we forecast full year margins to compress significantly over 2015 levels.

STXvWDC3Have more questions about Seagate or Western Digital? See the links below:

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Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to  Our Full Analysis For Seagate.

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Notes:
  1. Seagate Supplemental Fact Sheet, Seagate Press Release, April 2016 []
  2. Western Digital Supplemental Fact Sheet, Western Digital Press Release, April 2016 []