WW 4CQ22 HDDs Units Slip 6% at 36 Million

This is SDAS: HDD Information Service; CQ4 ’22 Quarterly Update – Executive Summary, published by Trendfocus, Inc. on February 2, 2023

4CQ22 HDD Units Slip 6%
While Capacity Drops 21% to 36 Million, 226EB
Nearline capacity plunges 29% sequentially to 159EB,
10.5 million units, likely reaching a bottom

With units slipping 2% Q/Q to 15.35 million HDDs, an 8% reduction in sequential nearline units resulted in Seagate‘s 5% Q/Q capacity reduction to 112.52EB even as average nearline capacity held flat at 15.5TB. Performance enterprise rose 4% Q-Q while solid branded increases, illustrating improved retail spending, offset declines in other categories such as surveillance (in 3.5″ CE). Average HDD capacity of 7.3TB dipped 3% sequentially on the reduced contribution of nearline HDDs; however, Seagate posted the smallest percentage reduction for nearline unit shipments, resulting in a nearly 10 percentage point share gain to 51%. Total HDD share of 42% rose just under 1.5 percentage points Q/Q.

Toshiba’s slightly higher sequential unit shipments of 8.02 million were countered by a 19% Q/Q drop in nearline HDDs, driving a 14% reduction in total capacity shipped, falling to 31.89EB. Average nearline capacity of 13.1TB slipped only 100GB from prior quarter. Performance enterprise shipments lifted a solid 17% sequentially, indicating that OEM and channel weakness plaguing this category in prior quarters had eased. The client
categories of desktop and mobile held largely unchanged from the prior quarter but a large 57% Q/Q increase of 2.5″ CE HDDs drove a 23% total CE unit rise. Average HDD capacity of 4.0TB fell from 4.6TB in 3CQ22 on the lower nearline contribution to the total. Total HDD shipment share of 22% increased more than one percentage point Q/Q.

Western Digital experienced a large 44% drop in sequential nearline HDD unit shipments with the segment’s capacity shipments cut nearly in half over the same period. The nearline reductions followed on the heels of the company’s competitors’ declines in the prior quarter. Total unit shipments of 12.89 million HDDs and 81.28EB fell 12% and plunged 37% Q/Q, respectively. Nearline shipments of 3.41 million and 52.83EB cut its market share to 32% for units and 33% for capacity shipped – all markedly lower Q/Q. Solid client HDD increases in desktop and mobile were driven by healthier seasonal branded sales, while market-wide surveillance demand weakness cut the company’s 3.5″ CE units. Average HDD capacity of 6.3TB plunged 28% sequentially while total market share shed nearly 3 percentage points from the prior quarter, falling to just under 36%.

HDD supplier summary, 4CQ22, units in million