The macro economy would probably be #1 near-term. #2 is drive demand relative to the whole PC-market angst. Check Intel - not a pretty chart. And #2 is dependent somewhat upon #1, but not entirely.
The good thing is STX is still buying shares and has a really good divvy. And both STX & WDC seem to be curtailing production in order to maintain margins. That is a significant change. Lets hope the overall economy turns more positive.
1. STX missed June quarter numbers
2. STX has guided down twice for this quarter
3. Drive shipments are off 20% year-over-year this quarter with just a modest rebound expected for December and then according to Luczo flat
4. WDC is gaing share at the high end
5. PC market stinks
6. Worldwide economy getting worst
7. Semi capex hit an 8 month low at 0.84