September 18, 2008

Converge Storage Update

3.5" Drives
We have been tracking an increase in demand and volume sales on IDE HDDs in the 3.5" market segment. This represents a sharp reversal of a downward trend experienced during the past three months. Most of the activity is in the 80 GB to 160 GB range. However, the 250 GB and higher capacities are experiencing an increase as well, although not to the extent of the lower capacities. While demand and sales are on the rise, pricing has remained low, with no significant change month over month, with the exception of 1TB devices. This capacity has dropped to the $115 to $125 range in the open market.

2.5" Drives
Pricing for 2.5" SATA HDDs continues to decline in the open market. The 40 GB and 60 GB capacities are priced in the low- to mid-$20 range, while the 80 GB and 120 GB are selling in the mid-$30s. Meanwhile, 160 GB and 250 GB HDDs can be found in the mid-$40 and mid-$50 ranges, respectively. Overall, sales volumes remain low. However, we are seeing an increased amount of part number–specific demand at the CEM/OEM level.

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