HDD Shipments Drop in Q1 2025, But ASPs Reach Record Highs

The first calendar quarter of 2025 has seen a decline in total HDD shipments, with a 9.5% decrease compared to C4Q 2024, totaling 28.7 million units. Similarly, total exabytes shipped in C1Q 2025 were down about 4.4% from C4Q 2024, with HDD revenues estimated at $5.2 billion, representing an 8.4% decrease from the prior quarter.

Market Performance

Nearline HDD shipments experienced a 12% decline from the prior quarter. Western Digital led the market, shipping 12.1 million units and an estimated 179.8 exabytes of storage capacity. Seagate followed closely, shipping 11.4 million units and 143.6 exabytes of storage, while Toshiba shipped 5.2 million units and approximately 41.0 exabytes of storage. The total estimated exabytes shipped were 364.4 exabytes.

Impact of Trade War and Market Trends

Both Seagate and Western Digital reported potential impacts on the June quarter from the ongoing trade war in their quarterly reports. However, they expressed confidence that nearline storage demand would support near-term growth in storage and revenue. Notably, all HDDs and most HDD components are manufactured outside of the USA.

Company Performance

Seagate reported HDD revenue of $2,003 billion in the quarter, with Mass Capacity HDDs accounting for 87% of this revenue. The company shipped a total storage capacity of 143.6 exabytes, with 132.9 terabytes for all Mass Capacity and 119.7 terabytes for Nearline HDDs. The average HDD capacity was 12.6 terabytes, with Mass Capacity average capacity at 16.2 terabytes and legacy average capacity at 3.3 terabytes. Seagate shipped about 11.4 million units in the quarter with an ASP of $175.70.

Western Digital reported a 6% decrease in total HDD exabyte shipments from the prior quarter, estimated at 179.8 exabytes. They shipped 145 exabytes of nearline storage and 1.9 million client compute units. The average capacity of their nearline HDDs was approximately 17.5 terabytes. The company’s ASP was $179, a 4.1% increase from the prior quarter, and higher than Seagate’s. Total HDD revenue was $2.294 billion, with cloud storage accounting for about 87% of the company’s revenue.

Average Sales Price and Market Share

The average sales price (ASP) for HDDs increased by 4.9% from C4Q 2024 to C1Q 2025, reaching higher levels than seen at the end of 1998. This increase is attributed to the growing demand for high-capacity, high-ASP HDDs and the rise in the percentage of these drives shipped. As of C1Q 2025, Toshiba held about 18% of the market share, Seagate held 40%, and Western Digital held 42%.

Future Outlook

The growth of capacity-oriented nearline drives for enterprise and hyperscale applications is expected to result in more components per drive, thus increasing head and media demand by 2028. This trend may lead to additional capital spending to support component growth by 2027.

Conclusion

In conclusion, C1Q 2025 saw a decline in HDD unit shipments, exabyte shipments, and revenue compared to C4Q 2024. However, HDD ASPs reached their highest levels since the late 1990s. Despite the decline, HDD companies project quarterly and year-over-year growth in their June financials, driven by the increasing demand for nearline storage.

FAQs

• What was the total HDD shipment in C1Q 2025?
  • The total HDD shipment in C1Q 2025 was 28.7 million units, a 9.5% decrease from C4Q 2024.
• Which company led the market in C1Q 2025?
  • Western Digital led the market, shipping 12.1 million units and an estimated 179.8 exabytes of storage capacity.
• What was the average sales price (ASP) for HDDs in C1Q 2025?
  • The ASP for HDDs increased by 4.9% from C4Q 2024 to C1Q 2025, reaching higher levels than seen at the end of 1998.
• What is the expected outcome of the growth of capacity-oriented nearline drives?
  • The growth is expected to result in more components per drive, increasing head and media demand by 2028 and potentially leading to additional capital spending to support component growth by 2027.