Seagate: shortage of disks and results on the rise

If the resolve to make less disks year 2011, Seagate has not hesitated to take advantage of the State of shortage to increase prices. The result is the income and profits on the rise...


A few days ago, we analyse the financial results of Western Digital we reporting that rising prices of hard drives allows the manufacturer to do better to leave the head of water (report to flooding...) to publish figures remained in the green. What is Seagate, also affected - to a lesser extent - by the terrible rise of waters in Thailand? Here again, we see that the shortage is not prejudicial to the results.

Thus, on the last quarter of the year 2011, Seagate posted a turnover of $ 3.2 billion, an increase of 18.6% compared to the same quarter in 2010, with 563 million of dollars of benefits. However, experiencing difficulties in supply of spare parts (even if Seagate has no plants installed in Thailand, most of its suppliers have been affected by the floods), the manufacturer was delivered only 47 million of disks on the quarter, or 4% less than in 2010 and 8% less than between the months of July and September. Very clearly, the shortage plays at least in part the role of alibi to explain an increase in average prices strong enough to allow the two giants of the market to register growth.

Finally, Seagate slip a word on the State of shortage. According to the manufacturer, drives 119 million were delivered in total in the last quarter of 2011 for an application which stood at 175 million. It notes that the situation is improving, but Seagate believes that the return to normal will be until the end of the year.


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