Hard Disk Drive Prices Not Expected to Return to Pre-Flood Levels Until 2014

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Hard Disk Drive Prices Not Expected to Return to Pre-Flood Levels Until 2014

Market researchers at IHS iSuppli have predicted that the Hard Disk Drive prices will not return from the pre-flood levels until 2014 .

The average selling prices ( ASP ) of the HDD market was $51 in the third quarter 2011 , which soared to $66 in the fourth quarter after the Thailand floods that occurred in October . The ASP is still held steady at $66 in Q1 2012 and is expected to decline $65 in the second quarter .

hddprice.jpg


Floods caused a 29% decline in the shipments in fourth quarter 2011 , but the production is rising now and will recover completely by Q3 2012 . 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.”

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

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It's make our life like without heart in this computer world. The HDD is the heart in the computer world my friend. Nice review.
 
Can't trust these capitalists. By the time the price has reduced this technology would have been redundant since SSD has been catching up.
 
i dont think prices will come down even after 2014. these two companies have a monopoly. unless they are sued for price fixing there wont be a difference.
 
i dont think prices will come down even after 2014. these two companies have a monopoly. unless they are sued for price fixing there wont be a difference.
That is called duopoly, not monopoly.
And from what I've heard, only WD suffered any real loss due to flood. Seagate was not at all affected.

---------- Post added at 12:15 PM ---------- Previous post was at 12:14 PM ----------

i dont think prices will come down even after 2014. these two companies have a monopoly. unless they are sued for price fixing there wont be a difference.
That is called duopoly, not monopoly.
And from what I've heard, only WD suffered any real loss due to flood. Seagate was not at all affected.
 
Suppose the price does begin to go down globally. How much effect will it have due to weakened Rupee?
 
Well, you can't do anything about it, just bought a 500gb WD block from a forum member for 4k. At least got 3 year warranty, on the new hdd's heard the warranty is now dropped to 2 years from WD. With the amount of content being downloaded only 2 options, buy a new hdd or burn blank dvd's to store data.
 
WD went from Bad to worst recently,
Warranty 2-years for internal HDD except WD-black, Internal HDD's especially the green ones crash like hell, no WD-blue available for 1TB and 2TB variants. 1TB and 2TB WD-Black also crash like hell. WD is currently not reliable. I really don't care about the cost but the quality is just not there, it's a better investment to get a SSD over HDD if you want your data to last three years.

No-one receives the Customer Care phone number, even if it is received it takes ~ 5 minutes for someone to actually answer your call.
email support has simply vanished, NO REPLIES AT ALL.

RMA'ing shifted from Blue Dart to AFL!!!
No pick-up and drop facility from now on, you have to personally submit the package to AFL. AFL is a 3rd grade courier company(even after being a branch of FedEx), to confirm just compare their locations and their employees with BlueDart/Aramex/DTDC etc....
 
Forget it ! They have tasted the blood. They will never bring the prices back anywhere near to the lowest they were. :|
 
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