Western Digital accounted for 45 percent of the HDD market in the second quarter, followed by Seagate at 42 percent, IHS said. Toshiba Corp. accounted for 13 percent of the market in the second quarter, IHS said.
Seagate, which was the HDD market leader for most of the past decade, is forecast to remain runner-up in the third quarter, according to IHS. Despite its fall to No. 2 in the second quarter, Seagate is the leader in the desktop, enterprise and non-PC segment, such as consumer electronics, according to IHS.
Gross margins continued to remain high for both Western Digital and Seagate in the second quarter, IHS said.
Western Digital’s gross margin of 31 percent was 1 percent lower than in the first quarter, but still much higher than the previous record of 26.2 percent in the fourth quarter of 2009, IHS said. The slight decrease in margin was likely caused by pricing pressure three weeks before the end of the second quarter, the firm said.
Seagate’s gross margin, in comparison, fell to 33 percent in the second quarter, down from 37 percent in the first quarter, IHS said. But Seagate's margin remained well above its pre-flood level of 19.3 percent, IHS said. Part of Seagate’s lower margin was the result of product-specific concerns, such as noise issues in some desktop HDDs as well as contamination problems with some mission-critical enterprise HDDs, IHS said. Both required a rework on Seagate’s part, adding to costs, the firm said.
Seagate has since the matters have been resolved, and IHS said it expects the company's third-quarter margins to remain in the 30 percent range.
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