- Seagate (STX -1.8%), Fusion-io (FIO -5.3%), and OCZ (OCZ -5.7%) have joined NetApp (previous) in selling off following EMC's (EMC -3.7%) Q3 miss.
- The storage giant's mainstay Information Storage unit saw a slight Y/Y drop in product sales, as 66% growth in flash and scale-out storage sales failed to offset an 8% Y/Y drop for high-end storage, a mere 3% increase in mid-range and backup/recovery hardware, and a 6% drop for other storage products.
- EMC's numbers follow a Q2 for which IDC estimated total disk storage systems sales fell 5% Y/Y, and external disk storage sales dropped 0.8%. EMC was assigned a 24.2% share of the former market (+170 bps Y/Y), and a 31.3% share of the latter (+90 bps).
- EMC blames its Q3 issues on U.S. federal demand; the company isn't alone in seeing federal weakness. However, both server and storage hardware sales have been pressured by the adoption of commodity/white-label hardware (generally using cheaper hard drives) by Internet giants and cloud infrastructure providers such as Google, Facebook, and Amazon.
Storage industry stocks sell off following EMC's Q3 miss
Oct 22 2013, 11:26 ET