Seagate misses target

Seagate says its Q4 revenue is expected to have missed its forecast as a quality issue at a supplier affected production in its enterprise disk drive unit.

Shipments fell by about 1.5 million units to about 66 million for the June quarter, squeezing adjusted gross margins to 33.6%. The company now expects to report revenue of $4.5bn. It had forecast $5bn.

The company also said it was adjusting its production according to lower global demand. This also follows two analysts' reports this week advising of lower PC sales this year.

"We are adjusting our production and inventory planning accordingly, and we expect average selling prices and margins to remain relatively stable in the September quarter," Chief Executive Steve Luczo said in a statement.