That report is highly misleading. Year-over-year drive sales were down 21% in the September quarter and in the December quarter of 2010 drive shipments were 168 M units versus 150-155 M expected for this quarter.
And what is the avg drive capacity in 2010 vs 2012 (smaller drives, smaller margins, smaller gross margin dollars)?
What were Gross margins is 2010 vs 2012?
Finally, how is it that an industry can ship fewer units yet still sizable profits?
Fixating upon TAM will lead to the wrong conclusion regarding how much money the HDD industry can make. It also shows you either don't know the HDD industry or don't care (just a short playing headlines).
Always appreciated your comments, but I cannot let a cheap shot go by unchallenged.
So 2010 is ancient history?
FYI, in the four quarters prior to the flood, the quarterly drive TAM averaged 168 M units verus 140 M for this quarter and the forecast of 150-155 M for December.
"It also shows you either don't know the HDD industry or don't care"
FYI, not a short just a realist who spent 20 years working in the industry plus my tenure on this board goes back 15 years to the days when MastermindFYI and then MBAPHD played a highly informative role like you do today. Anybody remember that slick con artist for Silver Lake/STX, FINTAS, and his "one will go before April" call?
I am sure you noticed XRTX's earnings forecast of a potential 15 cent loss for this quarter versus the concensus estimate of $0.50. BTW, this is SouleC's favrorite storage stock, LOL.
So things are not all roses in the storage world right now.
Since even when things are prefect some buysiders still find reason to shun the drive firms, weak shipments won't help. They didn't want to run up STX/WDC when Luzco was forecasting $20 B in FY13 sales and 185 M units for this quarter, so why would they run it up now?