Feeling the heat in an increasingly volatile hard disk drive market, Seagate Technology has restructured its Australian distribution operations at the expense of Tech Pacific.
The loss of its Seagate distribution rights comes as somewhat of a blow for Tech Pac, although the distributor will continue to carry Seagate's tape backup products.
Tech Pac's marketing communications manager, Fiona Stewart, said that: "We were quite aware that our future distribution of Seagate hard disk drives depended on a stocking agreement being reached, but we weren't able to find a mutually workable solution."
The decision does, however, play nicely into the hands of fellow Seagate hard drive distributor Agate Technology, according to its managing director Hugh Evans.
"We feel that in six to 12 months Seagate will recapture some of the market share that it has lost to the likes of Quantum and will also come to grips with many of the quality issues it faced previously," Evans said.
Sources contacted by ARN last week claim that the vendor may have reacted adversely to the fact that Tech Pac already distributes hard disk drives from arch rival Quantum and recently acquired the rights to Fujitsu's hard disk range.
Seagate's decision to discon-tinue its Tech Pac partnership follows an extended period of carnage within the hard disk drive market.
BS Teh, Seagate Technology's Asia-Pacific director of sales, cited several inhibiting factors including "significant overcapacity, downward pricing and lower margins" as the catalysts for the vendor's reappraisal of the market.