Saturday, September 05, 2015
Search
  
Submit your own News for
inclusion in our Site.
Click here...
Breaking News
Facebook Dominates The Smartphone Apps Market
Toyota To Invest $50 million In Research Centers For Self-driving Cars
Report Reveals the Web's Shadiest Neighborhoods
Google Play Is Coming Back To China: report
Hackers Stole Data From Bugzilla
BlackBerry To Buy Rival Good Technology
GIGABYTE Z170X-UD5 Motherboard Is Intel Thunderbolt 3 Certified
LG Bets On OLED's Success, Showcases Innovative Prototypes At IFA2015
Active Discussions
How to back up a PS2 DL game
Copy a protected DVD?
roxio issues with xp pro
How to burn a backup copy of The Frozen Throne
Help make DVDInfoPro better with dvdinfomantis!!!
Copied dvd's say blank in computer only
menu making
Optiarc AD-7260S review
 Home > News > PC Parts > Hard Di...
Last 7 Days News : SU MO TU WE TH FR SA All News

Wednesday, June 06, 2012
Hard Disk Drive Prices Not Expected to Return to Pre-Flood Levels AnyTime Soon


Although production of hard disk drives (HDDs) is rapidly recovering from the Thailand floods that occurred in October, HDD average selling prices (ASPs) are not expected to decline to pre-disaster levels until 2014, according to an IHS iSuppli.

In the wake of the floods, the ASP for the entire HDD market soared to $66 in the fourth quarter of 2011, up 28 percent from $51 in the third quarter. The ASP held steady at $66 in the first quarter, and is expected to decline marginally to $65 in the second quarter.

Meanwhile, after flooding caused a 29 percent plunge in shipments in the fourth quarter, HDD production is rising and will recover completely by the third quarter.

Shipments rose by 18 percent to 145 million in the first quarter and by 10 percent to 159 million in the second quarter.

In the third quarter, shipments are expected to rise by another 10 percent to 176 million. This will mark the first time in 2012 that shipments will exceed their 2011 quarterly levels, up from 173 million in the third quarter of 2011.

Despite exceeding pre-flood shipment levels in the third quarter, pricing is expected to remain inflated. "HDD manufacturers now have greater pricing power than they did in 2011, allowing them to keep ASPs steady," said Fang Zhang, analyst for storage systems at IHS. "With the two mega-mergers between Seagate/Samsung and Western Digital/Hitachi GST, the two top suppliers held 85 percent of HDD market share in the first quarter 2012. This was up from 62 percent in the third quarter of 2011, before the mergers. The concentration of market share has resulted in an oligarchy where the top players can control pricing and are able to keep ASPs at a relatively high level."

Owing to concerns over HDD availability, an increasing number of PC original equipment manufacturers (OEMs) in the second quarter have signed long-term agreements (LTAs) with HDD makers. These LTAs provide shipment guarantees, but lock in pricing that is approximately 20 percent higher than pre-flood levels.

Even if all the OEMs stop entering into LTAs by the end of 2012, it would take about four quarters with a 6 percent sequential decline in the HDD ASP to reach the pre-flood pricing level. However, given that there have been no consecutive 6 percent sequential quarterly declines during the past three years, the likelihood is remote that this would happen now and that HDD pricing will decline accordingly.

Beyond the supply-side factors, demand-related issues also will contribute to inflated HDD pricing throughout 2012 and 2013.

From local drives for media content, to cloud storage of social media and corporate data, the requirement for large quantities of HDD capacity continues to increase.

Meanwhile, PC sales are also projected to climb in 2012. Growth will be driven by the rising adoption of Intel ?s Ivy Bridge microprocessor, the surging sales of ultrabooks in the second half of the year and the proliferation of Microsoft?s new Windows 8 operating system.


Previous
Next
Samsung To Offer Tom Clancy's Ghost Recon: Future Soldier Game With SSDs        All News        Pioneer Implements Class D3 Technology To AV Receivers
Samsung To Offer Tom Clancy's Ghost Recon: Future Soldier Game With SSDs     PC Parts News      Gigabyte At Computex 2012

Get RSS feed Easy Print E-Mail this Message

Related News
WD Delivers New 6 TB 3.5-Inch HDD for Datacenters
New LaCie Porsche Design Mobile Drive Has USB-C Reversible Connector
SDK Starts Shipments of 2.5-Inch 750 GB HD Media
HDDs Shipments Increased In 2014
HGST Hard Disks Top Reliability Tests
ASTC Says 100 TB HDDs Coming in 2025
Toshiba Offers New 4TB and 5TB Desktop HDDs
New WD My Passport Portable Storage Drive Has Wireless Function And SD Card Slot
Western Digital Introduces 6 TB NAS Hard Drive, Seagate Starts Sampling 8GB Models
HDD Market Seen To Post Modest Growth in 2014
HGST Debuts Touro S Mobile External Hard Drives, 15K RPM Enterprise-class Ultrastar C15K600 family
SDK Starts Shipments of 2.5-Inch 670GB HD Media

Most Popular News
 
Home | News | All News | Reviews | Articles | Guides | Download | Expert Area | Forum | Site Info
Site best viewed at 1024x768+ - CDRINFO.COM 1998-2015 - All rights reserved -
Privacy policy - Contact Us .