Surging SSS demand means "tough times ahead in disk drives"............................................
Like I said many, many times over many, many years.
The HDD is doomed.
Years and years ago, the guy at StorageSearch said a free HDD would be too expensive. He only covers Enterprise.
Mobile demand has shown the retail customer likes thin and not hot.
With mega-layer, multi-channel NAND, SSS prices will "fall off a cliff". Then come the "X"RAM stuff.
In this context, hulking HDD hotbox PCs are soooo 20th.
Insist on Cymer.
The Seagate downgrade follows comments from disk-drive component suppliers that include Broadcom ( AVGO) and Marvell Technologies ( MRVL), suggesting tough times ahead in disk drives.
In its Aug. 24 quarterly earnings call, Broadcom said strong growth in its disk drive business for enterprise customers currently is not sustainable and expects a sharp decline in demand, "driven by the start of an anticipated correction in the disk drive market," Seyrafi wrote in a note to clients. Enterprise business customers accounted for 37% of Seagate sales and a high percentage of its profits in the last quarter.
Marvell also made comments on its quarterly earnings conference call on Aug. 24 that presented a "cautious view of disk drive demand in the near-term," wrote Seyrafi. Marvell said that there were some inventory issues and factory transitions with a few major customers. Disk drive inventories are also above average, which raises concerns about pricing, said Seyrafi.
Seyrafi also said industry trends favor Micron Technology ( MU), a leading provider of DRAM chips uses in chip-based storage systems.
"We believe that current consensus estimates for Seagate are too high and need to be lowered," Seyrafi wrote. "We believe that investors should consider moving out of Seagate and into Micron." He said Micron is benefiting from healthy demand for the rise in chip-based storage systems, "which are increasingly displacing disk drives