Toshiba could sell or cease HDD business to focus on SSDs
Toshiba could sell or cease HDD business to focus on SSDs
According to reports from Japan, Toshiba could be on its way out of the hard disk drive business.
In a briefing with reporters, Toshiba president Masashi Muromachi said that the company will be restructuring its HDD business and that it is considering layoffs. It wants to either scale down the business or exit entirely so as to focus on its flash memory and SSD businesses.
Toshiba has, at present, a market share of around 17%, a long way behind Western Digital and Seagate, who have 43% and 40% respectively. Furthermore, there is a little chance for it to significantly increase its market share.
This is further compounded by the fact that the HDD market is seeing a decline, especially now that flash memory has come down dramatically in price.
If Toshiba is selling, then the likely buyers would likely be either Western Digital or Seagate, as both companies would be keen to snatch up Toshiba's existing customers.
Source: Storage Newsletter