IT News & Technology update

HDD demand lower than expected in December

According to the latest information, the company in December sales was lower than expected Seagate. Bill Watkins, CEO, said Tech Trader Daily that in the last month of 2008 was "just terrible" in demand for hard disk drives. One of the main reasons for lower demand, the sharp decline in stock in the distribution channel, Mr Watkins believes.

As a result of low sales figures are expected to announce capacity reductions and significant lay-off plan, which will include some 5,000 jobs, or 10 percent of the workforce in the U.S., as shown, Brian Dexheimer, President of the consumer division, in an interview with Reuters at CES last week.

Note that the 10th December last year, when the company lowered its Q4 revenue in the range of 2.3 billion dollars to 2.6 billion dollars, from the originally estimated $ 2.85 to $ 3.05 billion. It seems that market demand was even lower than expected, which means that Seagate reducing its Q4 revenue yet.

Seagate is not only hard drive vendor forced to lower its revenue forecast because of low market demand. His main rival, Western Digital, also in December 2008 announced plans to reduce the 5 percent of its workforce, which in some 2500 redundancies. The message is part of a plan to adjust costs in this difficult market.

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