Feeds

Seagate slams profit-ignorant rivals

Knocks out 39m hard drives in Q1

Top three mobile application threats

Seagate gave itself a pat on the back today in its September quarter report for holding the revenue line against hard drive competitors "who seem intent on trying to capture market share without regard to profitability". Fighting fire with fire , Seagate is determined to retain market share, and that will mean more price cuts.

In the September quarter, the average selling price (ASP) for Seagate drives fell $4.00 from the June quarter. Like-for-like products fell more than six per cent during quarter - no surprise here to Seagate which expected as much at the start of Q1.

But record shipments made up for lower ASPs - the company kncked out 37 million units during the quarter, of which 3.9 million were based on perpendicular recording technology. For the three months ended 29 September, Seagate's fiscal Q1,2007 - revenue was $2.8bn and net income was $59m. The results include a $344m contribution from Maxtor, its recently acquired rival, and $82m acquisition costs.

Noting aggressive prices for notebook and desktops, Bill Watkins, Seagate CEO, claimed a strong performance for the September quarter. "I'm pleased, particularly in the face of this environment, with the revenue retention we have achieved," he said, "and we are confident in our ability to continue to reduce cost and improve profitability throughout the year... Moving forward, while we remain committed to pricing discipline, we intend to maintain our current share position, and will manage our pricing strategy accordingly."

With cheaper Maxtor-branded hard drives coming on stream, Seagate will play hard in the PC mass market, while - it hopes - keep its profits pecker up in the enterprise / server market. This should bear fruit in the second half of the financial year, Seagate says. In the meantime, it expects price wars to continue. In light of this, it has adjusted revenue and earning guidance for the full year. It now expects $11.4bn-$11.8bn in revenue and GAAP-friendly income of $1.35-$1.45 per share. ®

Combat fraud and increase customer satisfaction

More from The Register

next story
Feast your PUNY eyes on highest resolution phone display EVER
Too much pixel dust for your strained eyeballs to handle
Samsung Galaxy S5 fingerprint scanner hacked in just 4 DAYS
Sammy's newbie cooked slower than iPhone, also costs more to build
Microsoft lobs pre-release Windows Phone 8.1 at devs who dare
App makers can load it before anyone else, but if they do they're stuck with it
Report: Apple seeking to raise iPhone 6 price by a HUNDRED BUCKS
'Well, that 5c experiment didn't go so well – let's try the other direction'
Rounded corners? Pah! Amazon's '3D phone has eye-tracking tech'
Now THAT'S what we call a proper new feature
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
US mobile firms cave on kill switch, agree to install anti-theft code
Slow and kludgy rollout will protect corporate profits
AMD unveils Godzilla's graphics card – 'the world's fastest, period'
The Radeon R9 295X2: Water-cooled, 5,632 stream processors, 11.5TFLOPS
Sony battery recall as VAIO goes out with a bang, not a whimper
The perils of having Panasonic as a partner
NORKS' own smartmobe pegged as Chinese landfill Android
Fake kit in the hermit kingdom? That's just Kim Jong-un-believable!
prev story

Whitepapers

Designing a defence for mobile apps
In this whitepaper learn the various considerations for defending mobile applications; from the mobile application architecture itself to the myriad testing technologies needed to properly assess mobile applications risk.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.