Mechanical hard drive supply is tight, Seagate follows Western Digital and raises prices

News from this site on April 22, according to Taiwanese media TechNews, mechanical hard drive giant Seagate sent a letter to customers on the 18th of this month, stating that it will implement price increases for new orders and additional demand, and it is expected that prices will continue to rise in the next few quarters. .

Seagate said that currently, demand continues to recover in many of its business categories. However, Seagate is still affected by previous production cuts. The current situation at both ends of supply and demand means that Seagate is difficult to meet customer needs and the delivery cycle is extended. .

Seagate's current overall production costs are also rising with global inflation, so will immediately implement price increases for new orders and additional demand, and expect the increase to continue in the next few quarters.

Users need to actively communicate with Seagate customer representatives about their short-term and long-term needs, and notify them of any changes to their orders as early as possible.

▲ Picture source TechNews

Seagate’s letter follows Western Digital’s lead. According to previous reports on this site, Western Digital stated on the 8th of this month that it will increase prices for two major categories of mechanical hard drives and solid-state drives, and will follow market changes to more actively implement price adjustment strategies.

Western Digital and Seagate have successively targeted two major reasons for the price increase of mechanical hard disks. On the one hand, the demand for large-capacity storage due to the AI ​​boom has spread to the HDD field; on the other hand, the overall production capacity is still affected by the poor market conditions in the early part of last year. supply reduction impact.

According to statistics from TrendForce, from the third quarter of 2023 to the first quarter of this year, the price of mechanical hard drives has increased by 10~20% overall. Industry insiders predict that mechanical hard drives will still have room for 5~10% price increase this quarter.

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