To realize this ambition, Seagete plans to cut the price of its product range. Chief Financial Officer of Seagate Technology Inc. reveals Patrick O'Malley, Seagate's product price cuts will be conducted from September 2010. O'Malley cautioned, however, Seagate product prices will go back up in about December 2010.
"Pruning is done because prices in the current HDD in the world supply far exceeds demand. However, prices will rebound in late 2010, when consumers make major purchases at the end of the year, "said O'Malley told Reuters.
Even so, the consumer is not expected to encounter huge discount Seagate products. Because, O'Malley reveals, the decline in the price of Seagate's products will only be around 4 percent.
In the global HDD market, Seagate is indeed known as strict HDD manufacturers maintain profitability, despite losing market share. In the fiscal quarter ended June 30, 2010, Seagate claimed to be able to sell 46.8 million units globally HDD.
This means that global sales volume is lower than the Seagate HDD WD WD because at that period was able to sell 49.7 million units globally HDD. But on the income side, capable of winning Seagate thin on WD.
In the fiscal quarter, Seagate could dredge revenue USD2, 7 billion. In the same period, WD able to achieve income only $ 2, 4 billion. This is a sign that scavenge Seagate profit margins far greater than the WD. Evidently, the fiscal quarter ended June 30, 2010, WD only able to reap profits USD265 million, In the same period.
Seagate is able to dredge the USD379 million profit, because the average price of Seagate products is relatively higher than the WD. In the global HDD market, Seagate is the market leader until the end 2009.Tetapi began early in 2010, Seagate dominance overthrown by the WD because the WD is able to sell valuable products more affordable.
"Even though Seagate sold the HDD with a smaller volume, Seagate is able to reach larger income because Seagate has playing in the upper class. Conversely, WD more played in the lower classes small so that their income, despite the large sales volume, "said Research Analyst Storage Systems iSuppli Corp. Fang Zhang.
iSuppli explains, WD, Seagate could undermine the dominance of the global HDD market in the first quarter (January to March) in 2010 because the WD is able to sell more units than the Seagate HDD.
Based on data from iSuppli, WD was able to sell 51.1 million units globally in the first quarter 2010 HDD, alias rose 3.2 percent from 49.5 million units in the fourth quarter (October-December) 2009. iSuppli explains Seagate is also able to achieve real positive growth in the first quarter 2010.
However, iSuppli asserted, Seagate is not able to achieve high growth WD. iSuppli presents, Seagate HDD sales volume in the first quarter 2010 reached only 50.3 million units, up 0.8 per cent aka only from 49.9 million units in the fourth quarter of 2009.
Signs of a shift in the leadership reins of the global HDD industry is already smelled of reports third fiscal quarter ended Seagate May 31 2010.Pada period, Seagate claimed had sold 50.3 million units globally and reap the revenue HDD USD3, 05 billion.
Seagate reveals, the performance is in accordance with Seagate's estimate and was quite satisfied.
When Seagate was on the wind with the performance of the third quarter of fiscal 2010, WD was able to achieve better sales high performance. On that period, WD claimed had sold 51.1 million units globally and reap the revenue USD2 HDD, 6 billion. iSuppli noted, Seagate still dominate the global HDD market in the fourth quarter 2009, with global market share of around 31 percent.
In that period, Seagate is able to sell approximately 49.9 million units globally HDD. At income side, Seagate can reap USD3, 03 billion.
Consequently, Seagate being a master global income share of HDD by 34 percent. At that time, Seagate is able to reach the global HDD sales volume growth of 8 percent per quarter.
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