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Seagate cuts warranties on bare drives

by Scott Bicheno on 12 December 2008, 15:42

Tags: Seagate (NASDAQ:STX)

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The whole story

We weren't happy that this told the whole story so we spoke to Seagate's EMEA corporate communications director, Ian O'Leary, to find out the reason for the move and what it means for the channel.

"Number one we need to save some money," conceded O'Leary. "But secondly we also need to make our warranty more attractive to our customers."

We commented that this seems a funny way of improving things for Seagate's customers and asked O'Leary to elaborate. "Our warranties have a sliding scale of reimbursement and, as 95 percent of returns take place in the first three years we thought it better to improve the reimbursements for that period. So, for example, we've increased the year two reimbursement from 75 percent to 100 percent."

A full breakdown of the warranty periods on all Seagate drives and an FAQ on this change can be accessed here. Our understanding is that the only changes concern the desktop and mobile bare drives and that any other warranties of less than five years were already in place before this change.

 



HEXUS Forums :: 13 Comments

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If 95% of warrenty claims happen within the first 3 years why would they be worried about the 5% that happend in years 4 and 5, this is a stupid idea , ive always used seagate due to there 5 year warrenty.
Breezey
If 95% of warrenty claims happen within the first 3 years why would they be worried about the 5% that happend in years 4 and 5, this is a stupid idea , ive always used seagate due to there 5 year warrenty.

If you are purchasing OEM drives(ie installing them yourself) then you get 5 year warranty anyway. The only change is for builders, companies building PC's and notebooks can only give customers 3 year warranty. Then again companies building systems only ever do 1-2 years after sales service with warranties so again there is still no real change to the service you will get if your Seagate drive fails.
ExHail
If you are purchasing OEM drives(ie installing them yourself) then you get 5 year warranty anyway. The only change is for builders, companies building PC's and notebooks can only give customers 3 year warranty. Then again companies building systems only ever do 1-2 years after sales service with warranties so again there is still no real change to the service you will get if your Seagate drive fails.

ah i see
“But secondly we also need to make our warranty more attractive to our customers.”
cutting the warranty from 5 years to 3 years is definitely 1 way i'd go about making the warranty seem more attractive!
ExHail
If you are purchasing OEM drives(ie installing them yourself) then you get 5 year warranty anyway.

That's not how it reads to me……

Our current 5-year limited warranty will remain in place for consumer retail products as well as for enterprise-class hard drives

The 3-year limited warranty on notebook, desktop and consumer electronics bare drives

Sounds to me like the only ones left with a 5 year warranty will be drives sold in external closures or retail boxes…..and I have never seen a hard drive that came in a retail box.

I think I may have seen some retail boxes at PC World, although I may be mistaken.