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Report: Seagate, Western Digital Hike HDD Prices Amid Surge In Demand

Report: Seagate, Western Digital Hike HDD Prices Amid Surge In Demand

Seagate Technology has reportedly notified its customers of plans to increase prices on new hard drive orders and requests that exceed previously agreed contracts, echoing a similar move by Western Digital. is, which raised its prices earlier this month. TrendForce reports that the changes come in response to increased demand for high-capacity HDDs and supply constraints due to production cuts at both Seagate and Western Digital.

According to a report by Industry Insights Tech News, the sector expects the shortage of high-capacity HDD products to persist during the current quarter and likely extend throughout the year. It is predicted that HDD prices will increase by 5% to 10% in Q2 2024 alone and may increase further as a result. Ongoing Challenges Facing the Storage Industry

The primary driver behind Seagate's decision is increased demand for high-capacity HDDs, which are used to train AI models. This demand spike, along with production cuts by hard drive manufacturers, has created a significant imbalance between supply and demand. As a result, Seagate has decided to adjust its pricing strategy to handle the situation. Compounding the problem are global inflationary pressures that continue to drive up costs across the board, which also played a role in the company's decision to raise prices, Seagate said in a message to clients published by TrendForce. paid

Seagate emphasized that its reduced productivity has been a major challenge, hindering the company's ability to fully and promptly meet customer demands.

“Consequently, we will apply the price increase immediately to new orders and to demand that exceeds previously committed volume,” Seagate's alleged memo read. “Supply constraints are expected to continue and thus we expect prices to continue to rise in the coming quarters.”

Earlier this month, Western Digital also informed its customers about a price hike for its HDD and SSD products. The notification was based on similar issues – higher than expected demand across the product range and additional supply chain challenges affecting the electronics sector. Western Digital's announcement made it clear that these disruptions are likely to continue, prompting further price adjustments.

Sources: Trend force, Trend force, Tech News

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