Seagate Increases the Market Share of Hard Drive to 40％

Published:2011/5/4 22:58:00 Author:Amy From:SeekIC

IHS iSuppli, a market research firm, said that Seagate Technology LLC will roughly have 40 percent of hard disk drive (HDD) market if it has the acquisition of Samsung Electronics Co. Ltd.’s HDD business. IHS research also noted that the overall HDD shipments of two firms occupied two-fifths of an HDD market with 652.4 million units in 2010 in the world.

The amount of HDD shipments from both Seagate and Samsung in 2010 hit 261.2 million units which is sufficient to give the combined companies 40 percent of the HDD market, or a No. 2 finish for the year, reported by HIS. On the other side, the shipment share of Seagate in 2010 was 195.2 million units, while Samsung is 66 million units, said in the report of IHS research.

Due to the merger, the shipment share of Seagate in HDD market in 2010 increased to 30 percent, and Samsung topped out at 10 percent, according to IHS research firm. However, Western Digital Corp. still has the leading poison in overall HDD market with regard to the primary storage medium for desktop PCs and most notebook computers, according to IHS.

A month before Seagate purchase--announced on April 19, Western Digital purchased Hitachi Global Storage Technologies announcing its own acquisition, said HIS. It also added that Western Digital’s shipments of 203.7 million units plus Hitachi’s 115.8 million reached 319.5 million of total shipment in 2010. Thus, Western Digital was put at No. 1 in the HDD market with 50 percent market share, IHS said.

After the mergers completed, the market share of HDD was evidently declined to just three players from five, according to the firm. Toshiba/Fujitsu—itself the eponymous product of a merger in 2009, was in the third place. Its shipment in 2010 was 1.7 million units which occupied 10 percent share of the HDD market, said the IHS research.

Fang Zahang, an analyst for storage systems in HIS, said that the reduction from five to three manufactures considerably improves the stability and efficiency of the HDD industry; however, the acquisition also signals a recognition by Seagate and Samsung that conditions in the storage space will become more challenging in the future in the future, he added.

IHS also claimed that the transaction which valued at $1.38 billion helps Seagate capable of Samsung’s NAND flash technology and allow Seagate access to Samsung’s clients in the Asian market, according to HIS. As for Samsung, its storage was focused on solid state drives, a rival technology for HDDs. The company is free to distribute resources and develop growth in other segments such as semiconductor foundry business. The related integrated circuit is MAS3587F.

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