Seagate Technology Holdings plc (NASDAQ:STX) Q2 2023 Earnings Call Transcript

Tristan Gerra : Just following up on some of the questions on pricing. I understand that controlling production is a way to get back over time to your utilization rates and gross margin target. But is the price decline in NAND that we’ve seen recently impacting some of the pricing that you’re looking at for HDDs? Or is there basically a possibility of share shift toward demand given the pricing that net is undertaking currently? And how do you react to that?

Dave Mosley: Tristan, I think that back in the day that the legacy markets went through some transitions because of this. There may be some happening in the consumer markets, that’s relatively small. The impact is relatively small. We still have a pretty good value proposition in the consumer markets as well. In the mass capacity markets not really. I mean I think the people running big mass capacity rigs either they understand both technologies and they use both technologies. They’re not really making a trade-off of one versus the other. I think NAND, we can all see that the business is tough over there. I think everybody is in tough shape and I feel for some of those guys because the world needs their technology, I think we need their technology as well to make sure that they do their part and the layers they’re relevant in, but I don’t think it affects mass capacity long term.

Operator: And this will conclude our question-and-answer session. I’d like to turn the conference back over to management for any closing remarks.

Dave Mosley: Thanks, Cole. As you heard today, Seagate is acting with speed and agility to manage through a tough near-term market environment. At the same time, we’re executing our strong mass capacity product road map that makes us well positioned to enhance customers’ value and Seagate’s financial performance. I’d just like to close by thanking all of our stakeholders for their ongoing support, and thanks for joining us today.

Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.