Smith & Associates | Market Alert: Toshiba in Talks to Buy Fujitsu’s HDD Business

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Market Alert: Toshiba in Talks to Buy Fujitsu’s HDD Business

Monday, 19 January 2009 06:02

Full Issue

As reported by Bloomberg and The Wall Street Journal, Toshiba is in negotiations with Fujitsu to buy their hard disk drive business. If the acquisition solidifies, the impact on the HDD market could be substantial. Currently, there are six major manufacturers of mobile drives: Fujitsu, Hitachi, Samsung, Seagate, Toshiba & Western Digital. If Toshiba elects to do a part migration, like Seagate did after acquiring Maxtor, end users will be forced to either update their approved vendor lists from Fujitsu to Toshiba, or expand to include one of the other four manufacturers. The pricing structure may also be impacted. With Toshiba already planning cutbacks on their 120GB and 160GB mobile drives, the venture would increase the likelihood of a tighter supply.

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