The Channel logo

News

By | Chris Mellor 13th January 2012 10:02

Seagate mulls flogging precious drives at auction

How to solve a drive shortage: bidding wars

CES 2012 At CES Seagate boss Steve Luczo said the company was considering running open market auctions of its disk drives to gauge spot prices and demand.

Luczo was talking at an informal investor event attended by Stifel Nicolaus' Aaron Rakers, who wrote that Seagate could run the auction events itself or hire a third party to do it. Auction experimentation could happen in the near-term, meaning weeks or a few months. Such a selling method could introduce increased volatility into the HDD market at a time when supplier consolidation is encouraging greater price stability.

Rakers also notes Seagate mentioning that Thai flooding and drive head shortages had pushed forward its introduction of 2.5-inch 500GB/platter and 3.5-inch 1TB/platter technology.

The second quarter should see 500GB/platter 2.5-inch drive shipments to its OEMS with a ramp up in volume in the third quarter. This will reduce the component count in drives as fewer platters and heads will be needed to reach the capacity points of currently shipping drives, which will lower Seagate's costs. ®

comment icon Read 17 comments on this article alert Send corrections

Opinion

frustration_anger_irritation_annoyance pain

Felipe Costa

Pressure to perform for stock market bearing down on disties
Columns of coins in the cloud

Michael Cote

Anything that simple to use has got to be complex to set up
Internet of Things

Gavin Clarke

This time, Larry's Oracle is going after the networking giants

Features

No email? No CRM? No Daily Mail iPad edition? You need a plan
Sinofsky's hybrid strategy looks dafter than ever
Failure to crack next-gen semiconductors threatens to set back humanity
SMEs get lip service - what they need is dinner at the Club