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HDD Industry Set for Return to Growth This Year

By - Source: IDC | B 35 comments

Market researchers believe that the HDD industry will be able to recover this year and grow unit shipments again.

The destructive Thailand flood caused HDD shipments to decline by 4.5 percent in 2011 year-over-year, but 2012 is expected to bring 7.7 percent unit growth. IDC forecasts an average annual growth rate of 9.6 percent between 2011 and 2016.

"In many respects, the hard disk drive industry has collectively hit the 'reset' button," said John Rydning, an IDC research vice president in a prepared statement. "A reset of the HDD industry structure should allow for the remaining HDD industry participants to slowly reduce HDD prices from current levels at a rate that still delivers value to customers, while at the same time ensuring sufficient funding is available to develop new HDD technologies that are needed to improve HDD capacity, performance, reliability, power consumption, and security."

Long-term growth, however, will only be possible if the major HDD manufacturers will be able to evolve into storage device and storage solution suppliers that address more markets than they do now. IDC believes that client PC HDD revenue will substantially decline over the next few years, while HDD demand from personal storage, entry-level storage, and enterprise applications (combined) is predicted to increase. The market research firm said that enterprises will make up the lion's share of sales down the road.

The company also noted that the cost of SSDs is not yet at a level where these devices can be easily justified for integration in an average PC. The opportunity for HDD makers is to convince PC vendors that hybrid HDDs are the more cost effective solution over SSDs, IDC said.

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  • 30 Hide
    warezme , April 3, 2012 3:14 PM
    dontcrosthestreamsi still find it strange that one factory that made oem old school hdd's getting its parking lot flooded could cause all hdd and sdd's to double in price. For a year.

    Now you understand how the oil companies work.
  • 25 Hide
    icemunk , April 3, 2012 3:33 PM
    I'm glad I bought my 1.5 TB and my two 1 TBs before the monopoly price fixing began. I refuse outright to pay $100+ for a 1TB harddrive when I was able to buy one for $49 in 2009.
  • 22 Hide
    dontcrosthestreams , April 3, 2012 3:12 PM
    i still find it strange that one factory that made oem old school hdd's getting its parking lot flooded could cause all hdd and sdd's to double in price. For a year.
Other Comments
  • 22 Hide
    dontcrosthestreams , April 3, 2012 3:12 PM
    i still find it strange that one factory that made oem old school hdd's getting its parking lot flooded could cause all hdd and sdd's to double in price. For a year.
  • 30 Hide
    warezme , April 3, 2012 3:14 PM
    dontcrosthestreamsi still find it strange that one factory that made oem old school hdd's getting its parking lot flooded could cause all hdd and sdd's to double in price. For a year.

    Now you understand how the oil companies work.
  • 12 Hide
    Pezcore27 , April 3, 2012 3:15 PM
    Good! Hopefully we see prices start to reflect this growth soon.
  • 8 Hide
    alidan , April 3, 2012 3:31 PM
    Pezcore27Good! Hopefully we see prices start to reflect this growth soon.


    lol, just checked the 4tb drive that i want, its down to 350$, 50 cheaper than initial price.
  • 25 Hide
    icemunk , April 3, 2012 3:33 PM
    I'm glad I bought my 1.5 TB and my two 1 TBs before the monopoly price fixing began. I refuse outright to pay $100+ for a 1TB harddrive when I was able to buy one for $49 in 2009.
  • 15 Hide
    huron , April 3, 2012 3:39 PM
    dontcrosthestreamsi still find it strange that one factory that made oem old school hdd's getting its parking lot flooded could cause all hdd and sdd's to double in price. For a year.


    I had heard that the actual clean rooms were flooded and they were the locations that made some of the drive heads.

    I'll agree with everyone else...not sure why it took so long to have the industry stabilize and get back to quasi-normal production.

    I'll be happy to see prices fall again.
  • 5 Hide
    skaz , April 3, 2012 3:47 PM
    I hope this brings back better pricing.
  • 17 Hide
    edlivian , April 3, 2012 4:07 PM
    I will not pay more than $70 for 2TB drive
  • 6 Hide
    fudoka711 , April 3, 2012 4:52 PM
    icemunkI'm glad I bought my 1.5 TB and my two 1 TBs before the monopoly price fixing began. I refuse outright to pay $100+ for a 1TB harddrive when I was able to buy one for $49 in 2009.


    I was going to buy a new external 2tb drive as a backup last holiday season...expecting it to go on sale for like $89 or lower like we saw in 2010's holiday season...but no =(

    Now I have to wait til holiday 2012 to maybe see that price again...sigh
  • 7 Hide
    e56imfg , April 3, 2012 4:55 PM
    Hallelujah!!
  • -3 Hide
    Northwestern , April 3, 2012 5:02 PM
    I'm going to hold onto my old 40GB drive until they quit the monopolization of the HDD market.
  • 2 Hide
    theuniquegamer , April 3, 2012 5:12 PM
    So prices are not coming to normal soon.
  • 4 Hide
    edlivian , April 3, 2012 5:12 PM
    the only good thing about the price squeeze is that I have been unloading my old 320gb hard drives on ebay for $60 and my 500gb drives for $75
  • 6 Hide
    guess who , April 3, 2012 5:14 PM
    Quote:
    I'm going to hold onto my old 40GB drive until they quit the monopolization of the HDD market.


    I have a couple of 4GB drives I can sell you.
  • 3 Hide
    Northwestern , April 3, 2012 5:43 PM
    guess whoI have a couple of 4GB drives I can sell you.

    If only you were being serious. I would buy them.
  • 5 Hide
    drwho1 , April 3, 2012 6:01 PM
    I'm still holding until 5TB are on the market, and then until they are available on the $100-$140 range.

    Still good news.
  • 4 Hide
    Middleman , April 3, 2012 6:07 PM
    Great, so when are prices going to come down? My 1.5TB Toshiba took a click-of-death crap last night, and I need to replace it with ANYTHING-BUT-ANOTHER-GD-TOSHIBA-BECAUSE-THIS-MAKES-3-IN-A-ROW as soon as possible, and 80 bucks for 500 gigs "On Sale" is ri-goddamn-diculous.
  • 1 Hide
    wishmaster12 , April 3, 2012 6:43 PM
    I wonder what windows 8 will do for the hardrive industry? Hopefully bigger and better raid technology and chipsets!
  • 9 Hide
    syrious1 , April 3, 2012 6:47 PM
    theuniquegamerSo prices are not coming to normal soon.


    Its just like gasoline, if you're payng $3.89 now, what's to keep you from paying $4 - they already have you by the balls.
  • 0 Hide
    f-14 , April 3, 2012 7:43 PM
    Quote:
    the HDD industry structure should allow for the remaining HDD industry participants to slowly reduce HDD prices from current levels at a rate that still delivers value to customers

    i don't see how that is going to be possible as nand flash is starting to kick their butts at $1 per GB.
    kind of hard for slower obsolete technology to recover from a price war like this let alone a disaster limiting their production.
    that was the death knell sounding for HDD profits, it only spirals down from here.
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