How Has The PC Market Slowdown Affected Western Digital & Seagate?

Hard drive manufacturers Western Digital (NASDAQ:WDC) and Seagate (NASDAQ:STX) each reported relatively weak fiscal Q3 results recently, owing to a steep decline in unit shipments throughout the quarter. ^{[1] [2]} Unit shipments for desktops and notebooks have been particularly low for both manufacturers over the last few quarters.

The trend is consistent with unit shipments witnessed by Seagate and Western Digital through 2015.

Low demand for PC units in the first half of 2015 was largely due to the anticipated mid-year release of Windows 10. However, even after the release of Windows 10, unit sales failed to pick up. According to IDC, PC units sales could remain low through 2016. ^[3]

Consequently, we forecast full year unit sales and segment revenues for both Seagate and Western Digital to decline on a year-over-year basis.

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

• What’s Seagate’s Revenue & Earnings Breakup?
• What’s Seagate’s Fundamental Value Based On Expected 2015 Results?
• Seagate’s Revenue & EBITDA Growth in The Next 5 Years: Trefis Estimate
• Why Has Seagate’s Stock Price Plummeted By 20% This Week?
• Western Digital Earnings: Low Shipments Across Divisions Weigh On Results
• How Do Western Digital And Seagate Compare On Enterprise Storage Sales?

Notes:

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1. Seagate Supplemental Fact Sheet, Seagate Press Release, April 2016 [↩]
2. Western Digital Supplemental Fact Sheet, Western Digital Press Release, April 2016 [↩]
3. Worldwide PC Shipments Will Continue to Decline into 2016 as the Short-Term Outlook Softens, According To IDC, IDC Press Release, December 2015 [↩]