flooding impacts disk drive industry
Special update for members of the Seagate Partner Program in Europe, Middle East and Africa
As has been widely reported, the severe flooding in Thailand is a tragic situation for families and businesses across the region. Currently, all Seagate facilities in Thailand are operational and our production is not constrained by either internal component supply or by our ability to assemble finished products. Rather, we are constrained by the availability of specific externally sourced components. As a result, industry demand will significantly outstrip supply at least for the December quarter and the supply disruption will continue for multiple quarters.
Seagate’s Opinion
Seagate believes unconstrained industry demand would have been 180 million units for the quarter ending December 2011. Given the supply disruption demand will significantly outstrip supply at least for the December 2011 quarter, and will likely continue for multiple quarters.
Seagate expects that industry shipments will be limited to approximately 110-120 million units and we expect to ship between 41-45 million units in the December 2011 quarter.
To aid in the relief and recovery efforts, Seagate is donating $1 million across a few key organizations in Thailand.
Our business priorities are:
1) To support our external component suppliers’ efforts to rebuild the supply chain as quickly as possible;
and,
2) To work with our customers to strategically align their near- and long-term requirements to our production capability. As a result, we are aligning our production schedules and product builds to best support both our suppliers and our customers.
Please understand that this is an evolving situation that we are diligently monitoring on a daily basis. We value our relationships with all of our partners, suppliers and customers and their satisfaction will remain our highest priority.
Seagate Partner Program team
