updated 07:55 pm EST, Wed January 19, 2011
Flash memory also said to be contributing factor
Seagate has reported a significant drop in profits, which slid by 72 percent in the recent quarter. The lackluster performance was blamed on weaker-than-expected demand in the consumer computer segment. The rising popularity of flash-based storage is also said to be a minor factor contributing to the slump in HDD sales.
Although rival Western Digital reported better results through the same period, both companies have reported slow sales during the end of 2010. Western Digital aims to slash its output for the March quarter, in an attempt to clear some of its excess inventory from the previous quarter.
Intel recently announced a new record for its fourth quarter, however investments and the enterprise market were credited with driving the surge in profits. Apple also posted a record quarter, with notebook shipments up and desktop units down, though the Cupertino-based company has continued to outperform the general market for all computers. [via Wall Street Journal (sub. required)]