Printed from http://www.electronista.com

Samsung may sell hard drive business in wake of iPad

updated 11:10 pm EDT, Sun April 17, 2011

Samsung considering selloff of hard drive business

A source claimed Sunday night that Samsung was looking to sell off its hard drive business. The Korean company had set a target price of $1.5 billion but was eager enough to sell it for under $1 billion if it couldn't fetch the intended target. Seagate was the only named candidate from the Wall Street Journal's tip, but it wasn't clear how likely the US company was to land the deal.

Samsung had warned earlier this month that it would see profits shrink rapidly in its winter quarter results. Its hard drive segment was one of those at fault for the poorer results and has regularly been a money-losing aspect of the company's business. The source noted that staying in conventional rotating drives was "not strategic to succeed" and could be moved off without much penalty.

The losses have been partly blamed on Apple. Widely considered the largest consumer of flash memory in the world, the firm has been largely responsible for the shift away from mini hard drives to flash in media players and has also been affecting computers. The entirely flash-based iPad may have been single-handedly responsible for pushing a complete reorganization at Acer after its share began collapsing rapidly while trying to promote conventional netbooks, which for awhile had been sustaining interest in hard drives. Apple has also had some success driving all-flash storage in its own computers through the MacBook Air.

Consolidation has been increasingly common in the storage business as the companies who have struggled have been more willing to sell their businesses. Western Digital bought Hitachi's team in March, but companies like Fujitsu have also been casualties as they faced tougher competition from Seagate and Western Digital, the two dominant players in the field.

Neither Samsung nor Seagate has commented on the rumor.



By Electronista Staff
toggle

Comments

  1. iphonerulez

    Fresh-Faced Recruit

    Joined: Nov 2008

    -1

    Apple seems to be disrupting the computer

    industry by replacing other company products with its own and yet Apple's company value continues to drop which honestly seems rather amazing. You'd figure that the company doing the disrupting would be increasing in value in the industry by comparison. Things just aren't adding up properly with Apple.

    I know that hard drives might be losing their sheen in light mobile devices, but it's hard for me to imagine that they won't be around for a long time in both desktops and powerful notebooks.

  1. Paul Huang

    Mac Enthusiast

    Joined: Sep 1999

    +11

    AAPL's fluctuation is a result of April 20 financi

    Are you a short-term player in the stock market? Please review AAPL's chart since 1986 and you may see a pattern.

  1. Salty

    Professional Poster

    Joined: Jul 2005

    +2

    Maybe

    Maybe it also has to do with them being complete and utter c*** when it comes to Hard Drives. I bought two on Newegg.ca and they BOTH had bad sectors within a month. My warranty one came with 50 bad sectors pending! I'm waiting for the other one in my dad's computer to start to fail.

  1. Paradise Pete

    Fresh-Faced Recruit

    Joined: Nov 2007

    +10

    Short-term price drop

    Apple's stock is falling because of a re-weighting of the Nasdaq 100 index. Apple's growth has caused it to have too much influence on the index, and so its weight is being reduced on May 2nd.

    There are some large funds who track that index, and so they have no choice but to reduce their position in AAPL. That is causing a short-term downward pressure on the stock. Once that selling is complete the stock will return to whatever its "true" value is.

    I personally am looking at it as a buying opportunity, but that's just my opinion.

    Comment buried. Show
  1. linlincd

    Fresh-Faced Recruit

    Joined: Apr 2011

    -38

    http://www.goodshopping100.com



    ●●●●●●▂●-Something unexpected surprise●▂● ●●●●●

    our website: ===http://www.goodshopping100.com/===

    very good shopping web.

    The website wholesale for many kinds of fashion shoes,
    like the nike,jordan,prada, also including the jeans,shirts,bags,hat and the decorations.
    All the products are free shipping, and the the price is competitive,
    and also can accept the paypal payment.
    ,after the payment, can ship within short time.

    watches price 75$
    Air jordan(1-24)shoes $30
    Nike shox(R4,NZ,OZ,TL1,TL2,TL3) $35
    Hndbags(Coach lv fendi d&g) $35

    ===http://www.goodshopping100.com/===

    Tshirts (Polo ,ed hardy,lacoste) $16
    Jean(True Religion,ed hardy,coogi) $30
    Sunglasses(Oakey,coach,gucci,Armaini) $15
    New era cap $10

    Bikini (Ed hardy,polo) $25
    FREE SHIPPING,accept paypal
    free shipping
    accept paypal credit card
    lower price fast shippment with higher quality
    BEST QUALITY GUARANTEE!!
    SAFTY & HONESTY GUARANTEE!!
    FAST & PROMPT DELIVERY GUARANTEE!!

    our website: === http://www.goodshopping100.com/===


  1. DeezNutts

    Fresh-Faced Recruit

    Joined: Apr 2008

    0

    Its always been a money loser


    Hard Disk manufacturing has got to be one of the most cutthroat high tech businesses out there.

    The market is saturated for one, you can get 1tb for around $50 US pretty easily with a bit of shopping.

    Its not just the mobile market that is using more flash, a lot of computer users (esp the early adopters) are installing flash based hard disks as at least a primary drive for performance.

    I don't think Sammy has ever turned a profit making hard drives.





  1. Grendelmon

    Dedicated MacNNer

    Joined: Dec 2007

    +4

    Source?

    The losses have been partly blamed on Apple.

    MacNN, what is your source for this claim?

  1. sgirard

    Fresh-Faced Recruit

    Joined: Aug 2005

    +3

    Good Negotiating

    We're asking $1.5 billion, but we might take less than $1 billion because we are eager to sell.

    That sounds like a sure-fire negotiating tactic...

  1. testudo

    Forum Regular

    Joined: Aug 2001

    -1

    Of course it's apple

    Everything that happens in the world is, in one way or another, related to Apple (well, the good things - Apple had nothing to do with the Japan earthquake).

    If it weren't for Apple, no one would be thinking of using flash memory for hard drives in the devices or computers. Nope. Only Apple was thinking that one up. And now like everyone's doing it (well, except those who don't see the point in spending the extra money for less storage space, but that's mainly PC users who're stuck on specs).

  1. testudo

    Forum Regular

    Joined: Aug 2001

    +1

    Re: Good negotiating

    I'll give them $62 and an old George Foreman Grill (individual version).

Login Here

Not a member of the MacNN forums? Register now for free.

toggle

Network Headlines

toggle

Most Popular

Sponsor

Recent Reviews

Crucial MX100 256GB SATA-3 SSD

While the price to gigabyte ratio for magnetic platter-based hard drives can't be beat, the speed that a SSD brings to the table for a ...

Narrative Clip

With the advent of social media technology, people have been searching for new ways to share the events of their daily lives -- be it ...

Blue's Mikey Digital

Blue Microphones, a company that makes some of the most popular digital USB microphones among podcasters and musicians, has for some t ...

Sponsor

toggle

Most Commented

 
toggle

Popular News