Seagate shipped 39 million drives worth 40 percent of the HDD market in its third fiscal quarter, and while it sounds like a lot, it's well below expectations.
The company put the blame in part on reduced demand in the desktop PC sector, which is expected to only continue until the Windows 10 hardware refresh hits (with any luck, in the latter half of this year). One can point to the success of SSDs in the high-performance space as well; the more advanced drives should supersede HDDs soon, although not before SSD demand and thus prices increase, which should ease the pressure on HDD makers for awhile.
Tom's Hardware Contributing Editor Paul Alcorn says the solution right now for HDD makers is to focus on the high-capacity market where SSDs can't compete: this is in line with Seagate's 8TB enterprise drive success, which represents the only success last quarter as well as a market shift to the cloud. Seagate Chairman and Chief Executive Officer Steve Luczo agreed when explaining the situation.