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Hard drive and SSD sales continue to decline in 2022

The rise of cloud storage, the pandemic, production and supply chain issues, and now inflation. These are not good times for the sale of hard drives.

If already last July and according to a study published by Storage Newsletter, it was confirmed the increasingly complicated presence of these in the marketthe latest statements from the company itself, Seagate and Western Digital leave no room for doubt.

In the second quarter of 2022, the three large manufacturers of hard drives, to which Toshiba should be added, reflect a significant drop in sales: at almost 30% in the case of Seagate, more than 40% in the case of Toshiba and just under 35% in the case of Western Digital.

And although, a priori, the demand for hard drives had decreased in recent years in favor of faster drives like SSDsthese are not saved from a period of uncertainty in the sector.

At least that is what emerges from the statements of the CEO of Western Digital, David Goeckeler, in a recent Goldman Sachs technology conferencewhere he admitted that the sales objectives set for this year, in all probability, will not be achieved.

Reduction of profit margins

The most optimistic estimates had set a sales revenue projection of around 3.6 to 3.8 billion dollars in the last quarter of the year. However, the slowdown in consumption and the increase in the cost of production have reduced the company’s margins.

However, Sachs also wanted to send a positive message for the near future. and I cross the temporary situation, “When these additional costs recede, we will be able to return to the margins that we expect.”

Seagate is also not very optimistic about it.. The company has revised its revenue projections for the last quarter and has done so downwards, going from 2,500 million dollars to 2,100 million dollars.

CEO Dave Mosley has been blunt: “Everyone is taking a little bit of a break from investing in storage of any kind.” Admitting a slowdown in sales that, for the company, They are not normal at this time of year after returning from the holidays.

An important role for this reduction in income is the drop in demand from Chinese markets that has especially affected the sector of storage products. And, as we pointed out earlier, the rise of cloud storage.

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