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Friday, 09 November 2007 14:56

Hard drive prices may drop in fourth quarter

Written by David Stellmack

Image

Don’t get too excited, the price will only drop a little


Hard drive buyers enjoyed some steep price drops this past summer and fall on hard drives as manufacturers attempted to clear out old inventory and capacities that they are no longer offering due to new platter configurations. According to iSuppli, hard drive prices are only expected to drop between 4 to 6 percent this quarter and it does not look like consumers will be the main beneficiaries.

Hard drive demand is expected to rise by about 11.3 percent in the fourth quarter due to higher demand for the PC and several non-traditional hard drive storage segments. Hard drive manufacturers are starting to pay much more attention to the non-traditional markets, such as gaming consoles and DVRs, than they have in the past since these segments are growing at a higher rate than many of the hard drive manufacturers had predicted. This has led to the development, tweaking, and customization of drives that are better suited for these market segments.

This is good news for hard drive manufacturers who have traditionally struggled to turn a profit in a very competitive market space. The need for more hard drives means fewer hard drives sitting in warehouses waiting to be sold.

Last modified on Friday, 09 November 2007 15:49

David Stellmack

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