I’ve always been a fan of Seagate (what does that even mean?). Anyways, it seems their acquisition of Maxtor wasn’t such a terrible idea at all!
Seagate Technology’s acquisition of competitor Maxtor spurred a price war in the first half of 2006 as HDD suppliers vied to capture a portion of the market-share vacuum left open by the merger. The industry also faced shortages of glass media, along with minor shortfalls of other components near the end of the year.
The top-two leading HDD suppliers also made gains in the fourth quarter of 2006. Seagate’s share of 34.6% in the fourth quarter was up a notch from 34.3% in the third quarter. Western Digital Corporation (WDC) held its second-place position at 20.5%, also up slightly from 19.9% in the previous quarter. However, number-three Hitachi GST’s share was 17.2%, down slightly from 17.5% in the third quarter.