To make matters worse, iSuppli says, hard drive makers' profits are declining because of thinning margins brought on by "intense" competition. Seagate's margin went down from 24.3% to 21.3% between Q1 2006 and Q1 2007, and Western Digital saw a similar year-over-year margin decline from 19.3% to 15.7%. Competition in the mobile PC and consumer electronics storage markets is named as the culprit for those drops.
As far as market shares go, though, not much seems to have changed. Seagate was still the leading hard drive maker in Q1 with 34.6% of the market—the same figure as in Q1 2006. Western Digital also remained in second place and saw its market share rise from 20.5% to 21.% year-over-year, while Hitachi GST retained its 17.2% market share. Samsung's slice of the pie went up slightly from 10.4% to 11%.