|Innovating The Next Big Thing||May 24, 2013|
• Analyst Insights
• Enterprise Insights
• Network & Information Security
• Enterprise Mobility
• Remembering 9/11
Next Innovator Group
Feedjit Live Web Stats
• Ghost City
iSuppli: Hard Disk Drive Prices Not Expected to Return to Pre-Flood Levels Until
Jun 6, 2012 – Fang Zhang
Although production of hard disk drives (HDDs) is rapidly recovering from the catastrophic 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 Memory & Storage Market Brief report at information and analytics provider IHS (NYSE: IHS).
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, as presented in the figure below.
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.”
Potentates of Pricing
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.
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 Corp.’s Ivy Bridge microprocessor, the surging sales of ultrabooks in the second half of the year and the proliferation of Microsoft Corp.’s new Windows 8 operating system.
» Send this article to a friend...
» Comments? Tell us what you think...
» More Analyst Insights articles...
Commentsblog comments powered by Disqus
Support This Site
• 5/12 Frontline Sentinel: Two-Factor Authentication for Social Media Sites
• 5/10 McAfee Blogs: RealTime for ePO – Optimized Endpoint Security
• 5/10 Ovum: Ovum comments: GB smart meter delay better late than never
• 5/10 Gartner Says India Has The Potential To Lead The World In The Nexus Of Social, Mobile, Cloud And Information But May Waste The Opportunity
• 5/9 Frontline Sentinel: NSA's Manual on Hacking the Internet
• 5/9 Frontline Sentinel: 8 charged in $45 million cybertheft bank heist
• 5/9 Gartner Highlights Three Key Foundational Elements for Demand-Driven Retail Success
• 5/9 iSuppli: Korean and American Versions of Galaxy S4 as Different as Kimchee and Coleslaw, IHS Teardown Reveals
• 5/9 eMarketer: eMarketer: Emerging Markets Drive Facebook User Growth
• 5/9 Wireless Watch: Microsoft/Nokia alliance at crossroads as both ponder OS futures
• 5/9 Wireless Watch: Apple must rethink far more than the iOS user interface
• 5/9 Faultline: Quantenna gets closer to ST Micro, expect it to get “ascloseasthis”
• 5/9 Faultline: Microsoft volunteers to take Nook, as Barnes and Noble start to breakup
• 5/9 Canalys: Smart mobile device shipments exceed 300 million in Q1 2013 - Android powers 59% of smart phones, tablets and notebooks
• 5/8 McAfee Blogs: Cybercriminals Celebrate – It’s Mothers Day!!
• 5/8 Ovum: Government policy-makers need to create a level playing field for cloud services procurement
• 5/8 Gartner Says Smart Organizations Will Embrace Fast and Frequent Project Failure in Their Quest for Agility
• 5/7 McAfee Blogs: How Secure Are Your Social Accounts?
• 5/7 McAfee Blogs: The Password Problem. Is it Your Problem?
• 5/7 McAfee Blogs: Have you met McAfee’s SIEM?
• 5/7 McAfee Blogs: NCCDC 2013 – Red Team Recap
• 5/7 HP Security Lab Blog: HP TippingPoint announces Security Management System 3.6
• 5/7 McAfee Blogs: Yes, There are “Mother’s Day” Scams
• 5/7 Ovum: Analyst View: TPG looks to become Australia’s fourth MNO
• 5/7 Ovum: Analyst view: UK G-Cloud to champion public cloud
• 5/7 Gartner Says CIOs Will Need to Manage Both Technology and Business Innovation to Gain Competitive Advantage with Big Data
• 5/6 Gartner Says Indian Public Cloud Services Market To Reach $443 Million In 2013
• 5/6 iSuppli: IHS Discusses How PCs Can Survive the Tablet Invasion, at the SID Touch Gesture Motion Event
• 5/6 McAfee Blogs: Emerging ‘Stack Pivoting’ Exploits Bypass Common Security
• 5/5 McAfee Blogs: Intel, McAfee Investing in Network Security; Strength through Acquisition
• 5/5 McAfee Blogs: Change Your Password Day – Get Onboard!
• 5/5 Frontline Sentinel: iFrame drive-by attack demo [Anatomy of Attack online]
• 5/3 Frontline Sentinel: Basic Use of Maltego for Network Intelligence Gathering
• 5/3 iSuppli: Russian, Eastern European Video Surveillance Market to Double from 2012 to 2017
• 5/3 McAfee Blogs: AP, Burger King, LivingSocial….Who’ll be Hacked Next?
• 5/2 iSuppli: SSDs to Account for One-Third of Worldwide PC Storage Shipments by 2017
• 5/2 iSuppli: PV Inverter Supplier Base Fragments in 2012 – Minimal Impact From Recent M&A Activity in 2013
• 5/2 McAfee Blogs: Healthcare Cloud Enabled Analytics is Growing
• 5/2 Ovum: Analyst view: Facebook’s Q1 2013 results
• 5/2 Australian Organizations to Spend A$70 Million on Business Process Management Suites in 2013: Gartner
• 5/2 Worldwide Semiconductor Assembly and Test Services Market Grew 2.1 Percent in 2012, According to Final Results by Gartner
• 5/2 Wireles Watch: ZigBee Alliance completes Smart Energy Profile 2:
• 5/2 Wireless Watch: AMD, AT&T and Ericsson – wireless value chain shifts to IoT
• 5/2 Faultline: Netflix Hastings predicts OTT world – should stick to profit predictions
• 5/2 Faultline: Ziggo to add 1m homespots by August, work with Liberty Global
• 5/2 Canalys: Canalys launches ‘Appcessory Analysis’ service - First analyst firm to launch a dedicated continuous information service in this space
• 5/1 McAfee Blogs: BadNews for Good People
• 5/1 Frontline Sentinel: The PR Implications Of Cyber Security
• 5/1 HP Security Lab Blog: So, you want to build a Security Operations Center...
• 5/1 HP Security Lab Blog: The new era of security intelligence, part 1