I assume it’s lower than where you were about a year ago, which was about $3 billion, a little bit below $3 billion.Gianluca Romano Yes, of course, depends also from the mix and other factors. But as you said, we are taking a lot of cost actions. So what we also said last quarter is when we go back to the prior level of revenue that we picked at about $3 billion, we expect gross margin to be actually better than what it was at that time. So we are still confident in the medium and long term. We are taking actions to be even stronger when we come out from this down cycle. And we are executing our road map. We are executing all our cost reviews, and we think we are ready for the recovery of this up cycle when it comes.Shanye Hudson And operator, I think we have time for two more questions.Operator The next question comes from Sidney Ho of Deutsche Bank.Sidney Ho Great.
So I have two quick ones, one on the HAMR side. It sounds like high volume is starting in early ’24 to your plan. Can you give us any goalpost in terms of when you expect to hit a certain unit volume on a quarterly basis and maybe when you expect HAMR to be gross margin accretive, and maybe at what kind of volume level? And I have a follow-up.Dave Mosley Yes. I think Sidney, our gross margins are going to come back based on demand. I don’t know that we can really break it out based on HAMR transition right now because there’s so many other dynamics. But we are aggressively filling the pipeline full of the product, working on the yields and scrap that we need to get down. Very, very confident in the technology. So thanks for the question. I would say we’ll hit what I’ll consider a significant volume ramp in early 2024.
And then we’re going to continue to ramp from there because we have that much confidence.Sidney Ho Okay. That’s helpful. Maybe a follow-up question is on the demand side. It seems like you’re more optimistic about the enterprise market as compared to the cloud market. Do you expect further correction in the enterprise market, maybe — or maybe just a U-shaped recovery, considering comments from some of the storage OEMs seem to be quite subdued and it looks like they are just going through the domain collection in their — it’s still in the early stages for them.Dave Mosley Yes. I think the only subtlety to your comment is I would say that my comments earlier were about inventory. There’s just not too much inventory out there in those chains.
So when we did start to see some recovery, I think there’s room for the inventory to repopulate. I know — to your point, I know that people are talking about a fairly subdued summer at least, maybe no recovery until the back half in there, and so we are watching that. I do think there’s — unlike some of the other markets where we look at maybe too much inventory to be digested, I don’t think that’s necessarily the case there. It’s been managed better.Operator The next question comes from Ananda Baruah of Loop Capital.Ananda Baruah Just two quick ones, I’ll ask them at the same time here. One might be more of a clarification. Dave, when you talk about you believe — and it was the question about, I think, sort of sequential growth at some point later in the year.
When you say towards the end of the year, you think demand will pick up again. Is that to say you think December quarter could see exabyte up sequentially. I guess, does that also mean the implications you think the September quarter would be down sequentially? And then I have a quick follow-up — I’ll leave that there and I have a quick follow-up.Dave Mosley Yes. I think — Ananda thanks for the question. I think it’s a little too early to guide. I mean I think we’re still, frankly, digesting. We’re just telling people what we’re building. I do think at some point, exabytes pick up, of course, right? And if we want to think about the December quarter or something like that, that’s fine because I think there should be some pickup, barring any other macro issues or something, but it’s too early to guide, I think, very specific.
What we’re doing right now is curtailing the build.Ananda Baruah And the quick follow-up is on the BIS dynamics, is there a revenue impact we should take into account now as well with that invested?Dave Mosley No, no revenue impact.Operator This concludes our question-and-answer session. I would like to turn the conference back over to management for any closing remarks.Dave Mosley Thanks, Andrea. As you heard today, Seagate’s 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 positions us to serve our customers and improve Seagate’s financial performance. I just want 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, and you may now disconnect.
