Global Information Inc. would like to present a new market research report,"The Hard Disk Drive Industry: Market Analysis And Processing Trends" by The Information Network.
Demand for hard disk drive (HDD) shipments has declined by 4% in the second quarter of 2010, which could trigger a slowdown for the PC market during the second half of 2010. Average prices for hard disk drives also averaged a 2% decrease during the second quarter and are expected to remain level for the third quarter. Overall, "the worldwide PC market is up 25% in 1H 2010 over the same period in 2009". Whats more, "Looking further down the supply chain, HDD shipments in Q2 2010 were down 4% sequentially but up 23% from Q2 2009."
According to Dr. Robert Castellano, President of The Information Network, "There were several factors in the drop: weakness in Europe, destocking by OEM customers, and a shift in ordering patterns by OEMS as they took advantage of lower cost sea versus air freight."
DigiTimes reports, "PC vendors have lowered their shipment goals by 5-10% for the third quarter as inventories have piled up due to weaker-than-expected second-quarter sales in Europe". Relative consumer weakness was the trend characterizing Q2 2010 as the European credit crisis forced retailers to pause purchasing for several weeks as a consequence of fluctuations in the euro exchange rate.
However, the brighter outlook is that "The HDD market is on track to record a growth of 22% in unit shipments to 680 million units in 2010."
What drives demand in the HDD market?
- Increased demand for personal computers with high storage capacities fueled by consumer multi-media, wireless and broadband applications, increased business usage and expansion of computers in developing economies.
- Growing demand for new consumer electronic applications requiring considerable digital data storage capability (i.e. digital video and audio recorders, video game platforms, GPS systems, HDTV applications).
- Rising demand for enterprise storage driven by a larger deployment of applications, such as data recovery, data security operations, and enterprise software data warehousing.