Toshiba to exit Hard disk drive business!

Tokyo based Toshiba is all set to exit hard disk drive business and is about to make it official in coming weeks. In September last year, the company nearly existed from PC business and now the Japan based company is planning to shrug its hands off its HDD business arm.

If this media rumor turns true, then Seagate and Western Digital will be considered as only leaders in hard drive business from this year.

According to Forbes, Toshiba has witnessed continuous shipment declines in recent quarters and particularly in HDDs meant for computer applications.

Personal computer based hard disk drives have been hurt by the decline in PC sales in the last few quarters and it appears that a decline or at least stagnant growth for these devices will continue for at least the near future.

Also HDD market is also under pressure to compete with SSDs in price and capacity point of view. As a result, personal computer HDD sales may continue to decline in the future, especially with no or limited PC unit shipment growth.

Toshiba used to have some presence in the branded products of HDD market with about a 27% market share till 2014. But in the first three quarters of 2015, Toshiba had a 14% market share in HDD shipments.

Hence, with a decline in HDD business of Toshiba, one thing is for sure. And that is the disk maker may plan to exit the business at some time of this year.

Already in December last year, we reported that Toshiba is looking to merge its PC business with Sony and Fujitsu. This is due to the fact that PC market is decreasing gradually among home consumers located around the world due to competition from tablets & smart phones.

If Toshiba were to exit the HDD business it would leave Seagate technology and Western Digital as the only remaining HDD companies which are also showing their presence in flash business these days.

So, what’s your viewpoint? Share it through the comments section below.



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