HDD Shipments Plummet 33% YoY on Weakening Demand
After a 33% year-on-year decline in shipments (year-on-year), the HDD market in the second quarter of 2022 appears to be on the verge of apocalypse, or at least at the door to purgatory. As reported According to Storage Newsletter, weakening client-side demand has caused this volatile shipping situation, one of the longest-lived storage media. The results of increased density are not enough to invigorate this particular market.
HDD shipments in various market segments (clients and companies) totaled only 45 million units. 2010 peak 651 million units (average of 162 million units per quarter).
vendor | Shipped HDD (1 million units) | Q / Q change (%) | Year-on-year (%) | market share |
Seagate | 19.8-20.6 | -10,4% / -13.8 | -26.9% / -29.7% | 44.3% -44.7% |
Toshiba | 8-8.6 | -14.3% / -20.2% | -38.5% / -42.8% | 18.5% -18.1% |
WDC | 16.5-17.3 | -12.4% / -16.5% | -31.4% / -34.6% | 37.2% |
total | 44.30-46.50 | -11.9% / -16.0% | -31.0% / -34.2% |
Enterprise HDDs were relatively flat and demand was down slightly compared to the same period last year. But it’s a consistently growing market for years, and there’s no doubt that it will continue to grow as cloud and high-performance computing.) The environment is an increasing digitization and scientific achievement of our lives. Requires cheap, low power, high density storage that can handle.
The biggest change was in the 2.5-inch form factor, with a staggering 40% quarterly decrease (QoQ) of around 11 million units. This decline is explained by sluggish retail shipments and softening of the mobility market. For flash-based storage solutions.
The second-largest loss in the HDD market was in the desktop / consumer electronics segment, where shipments fell by more than 30% to 17 million units. Weak demand was especially seen in the surveillance, PC and retail sectors. This decline in demand is not just related to macroeconomics. When inflation is 8.6% in the United States alone, more importantly, you need to spend money. However, it is also due to the reduced demand for PC space, and its shipments should reach a decrease of 8.2% per year compared to 2021. In addition, the storage-based cryptocurrency Chia was released around March last year, and HDD during the second quarter. It is difficult to determine (at all) how responsible it is to increase the YoY delta, as there is no data on how much this has affected the overall HDD shipment.
Since the price reduction of SSD has definitely increased the value proposition to system integrators and consumers, it is possible that “SSD killed HDD star”. NAND manufacturers are expected to reduce TLC and QLC NAND wafer prices by 8-13% in the second quarter of 2022 and another 5-10% in the third quarter. Consumer value propositions are even more confusing as SSDs are cheaper and have a better quality of life compared to windings, rotating platters, and less durable HDDs.