|Over 380 Million Hard Drives Sold in 2005 as PC Growth Fueled Expansion; CE Demand Underperforms|
Seagate Technology LLC boosted its HDD industry leadership in 2005 by shipping 108 million drives. This translated into a market share of 28.3%, according to a report by TrendFOCUS (www.trendfocus.com). The findings were announced in the Storage Demand Analysis System, CQ4 '05 Quarterly Update.
"Seagate had a banner year, with record shipments and the acquisition of Maxtor," stated Mark Geenen, President of TrendFOCUS. "Interestingly, Asian players like Hitachi, Samsung, Toshiba, and Fujitsu all maintained or expanded market shares as well." Maxtor, to be acquired by Seagate in 2006, saw its share slip to under 14% in 2005.
The industry's 25% unit growth in 2005 was based on solid fundamentals in core markets like PCs and servers. In the desktop HDD market, over 214 million units shipped, with Seagate maintaining leadership. Booming notebook PC sales caused a surge in 2.5" HDD shipments to 77 million, a 45% growth. Enterprise HDD shipments grew 11% to over 26 million units. HDD industry revenue was $28 billion, an increase of 18% from 2004.
Additionally, consumer electronics devices like iPods, DVRs, and game consoles consumed over 16% of all HDDs shipped in 2005, according to TrendFOCUS. This was considerably less than the 20% forecast, owing primarily to Apple's decision to shift away from 1" HDDs. "Had Apple maintained its iPod mini strategy, millions more hard drives would have been shipped," added Geenen. "That change was a blow to the small HDD outlook, but other CE devices will consume hundreds of millions of drives by 2010."
HDD manufacturer market shares, in unit terms, changed from 2004. A summary is as follows:
2005 2004 change Seagate 28.3% 26.9% +1.4% Western Digital 17.4% 17.9% -0.5% Maxtor 13.9% 17.6% -3.7% Hitachi GST 15.4% 15.3% +0.1% Toshiba 8.9% 7.2% +1.7% Samsung 8.7% 7.6% +1.1% Fujitsu 6.3% 5.8% +0.5% Others 1.2% 1.7% -0.5%
The HDD market will be at a healthy pace in 2006, according to TrendFOCUS. "Investors have been happy with the HDD industry for a while and, with demand expected to be solid, should remain so for years to come," added Geenen.