Feeds

Western Digital laps Seagate

Top dog in hard drive units

7 Elements of Radically Simple OS Migration

Western Digital reported a stonking first 2010 quarter yesterday, with record revenues and unit shipments, passing Seagate in drive unit production numbers for the first time.

Revenues for the quarter were $2.6bn, 66 per cent up or a billion dollars higher than the year-ago quarter. Net income was $400m, a massive jump from the $50m earned a year ago. WD made 51.1 million hard drives, almost 20 million more than the year-ago quarter's 31.6 million. This was a 62 per cent increase year-on-year and three per cent sequentially.

Western Digital exceeded Seagate's 50.3 million units after a long quarterly catch-up in production number terms. Seagate is still bigger than WD in market capitalisation terms - $9.83bn vs $9.30bn - but that measure looks likely to swing the other way if WD sustains its unit production numbers lead and builds its enterprise hard drive market sales faster than Seagate.

CEO and president John Coyne said the overall demand for hard disk drives (HDD) in the quarter was higher than the firm anticipated, confirming the view that the storage recession is over. He's confident about the rest of the year, saying, "We believe that calendar year 2010 will be an extremely strong year for storage," and he expects next quarter's revenue to be in the range $2.48bn-$2.58bn.

Coyne is very pleased with WD being the largest shipper of hard drives in the world but says there's a long way to go to have the largest revenue in the HDD business.

In the earnings call, he said that WD is committed to broadening its enterprise HDD product line and building on its 10,000 SAS drive entry product - a multi-year endeavour.

He was asked if tablets like the iPad with their use of flash would affect the HDD industry and that PC manufacturers would move more to flash.

Coyne thought not - NAND flash has a limited supply and the bulk of it is going into smart mobile devices. These generate content and that has to be stored in bulk, which means on hard drives used in nearline storage and the cloud. He said: "As we look at the specs of some of the prospective tablets that are coming along, they will also have content generation capability. And we see it all as positive addition to the total infrastructural demand that’s going to drive our business into the future." ®

Best practices for enterprise data

More from The Register

next story
Microsoft's Euro cloud darkens: US FEDS can dig into foreign servers
They're not emails, they're business records, says court
Sysadmin Day 2014: Quick, there's still time to get the beers in
He walked over the broken glass, killed the thugs... and er... reconnected the cables*
VMware builds product executables on 50 Mac Minis
And goes to the Genius Bar for support
Multipath TCP speeds up the internet so much that security breaks
Black Hat research says proposed protocol will bork network probes, flummox firewalls
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
Microsoft says 'weird things' can happen during Windows Server 2003 migrations
Fix coming for bug that makes Kerberos croak when you run two domain controllers
Cisco says network virtualisation won't pay off everywhere
Another sign of strain in the Borg/VMware relationship?
prev story

Whitepapers

7 Elements of Radically Simple OS Migration
Avoid the typical headaches of OS migration during your next project by learning about 7 elements of radically simple OS migration.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Solving today's distributed Big Data backup challenges
Enable IT efficiency and allow a firm to access and reuse corporate information for competitive advantage, ultimately changing business outcomes.
A new approach to endpoint data protection
What is the best way to ensure comprehensive visibility, management, and control of information on both company-owned and employee-owned devices?