May 13, 2009

The storage market offers few surprises

Converge Storage Update.

3.5" Drives
Demand continues to rise for storage devices in the 3.5" market. This trend began the first month of the first quarter and has continued to the present. Currently, we are experiencing an uptick in pricing on 160 GB through 400 GB capacities month over month. This translates to approximately $2 per hard drive in that range. SATA HDDs are less expensive by $2 to $3, compared to IDE HDDs of the same capacity. There has been little to no change in pricing for 80 GB, 500 GB and 750 GB capacities when compared to April prices.

2.5" Drives
The 2.5" storage market is in a state similar to that of the 3.5" market. Amid reports of decreased inventory levels, coupled with production issues, we are tracking a spike in demand. This is particularly true of, but not exclusive to, the SATA interface in the 160 GB through 320 GB capacities. Pricing has remained stable, with increases expected in the near future as specific capacities and speeds become scarce. The market remains active in the lower-capacity IDE drives as well. This is evident in the 20 GB through 80 GB capacities in both the 4200 and 5400 speeds. All capacities in this range are liquid, and open-market pricing has remained remarkably stable.

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