December 17, 2008

Storage drive market prices continue to fall

Converge Storage Update

3.5" Drives
Converge has been tracking an increase in sales in the 3.5" storage drive market month over month. Meanwhile, pricing has remained relatively stable in the 160 GB to 500 GB range during this timeframe, differing by only $1 to $2 since our last Market Insights update. However, pricing in the higher-capacity drives, 750 GB and 1 TB, is eroding at a much faster rate, with open-market pricing in the low $70 to high $90 range, respectively. Conversely, sales in lower-capacity drives have slowed, with 80 GB and 120 GB capacities no longer moving at the same volume they were two to three months ago. These devices have experienced sharp price declines compared to mainstream drives, with price parity occurring between these two capacities.

In general, the PATA interface remains liquid as compared to the SATA interface, which is particularly true in the lower-capacity models.

2.5" Drives
The 2.5" market continues to slide. Open-market IDE pricing fell by 10% to 15% month over month. However, sales volumes have remained relatively stable. Meanwhile, the SATA market is experiencing even sharper declines, with as much as an $8 difference between comparable IDE hard drives of the same capacity and speed. SATA sales volumes are low, but part-specific demand remains.

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