September 16, 2009

3.5” drive market experiences price volatility

Converge Storage Update.

3.5" Drives.
The downward trend in the 3.5" market continues month over month, with pricing in higher-capacity drives still falling, which is especially evident in the 500GB, 750GB and 1TB SATA HDDs. We have also been monitoring contract pricing in the spot market for some 1TB drives in the low-to-mid-$80s range. Meanwhile, there is some part-number-specific production and service demand in this same capacity range commanding a premium price with manufacturer delivery dates up to two months out. With supply levels shrinking, we expect stabilization in prices or even an uptick in the coming months for this segment. Demand continues for the 250GB through 400GB HDDs in both the IDE and SATA interfaces, with little change in pricing over the last 60 to 90 days.

2.5" Drives.
Converge is not observing the same price volatility in the higher-capacity 2.5" HDDs as we are in the 3.5" market. This is in contrast to the August Market Insights update, when we were experiencing significant swings week to week. Demand remains strong for both the production and service arenas. As in our last report, most of the activity is in the 160GB to 320GB SATA range. However, we have received requests for 400GB and 500GB of the same interface recently. Similarly, demand for the IDE interface has remained strong month over month, with price points stable.

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2 comments:

  1. 3.5" HDD prices falling probably b/c netbooks/notebooks are in demand whilst DT drives are not, no?

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  2. Thanks for the comment. The shift from a desktop driven market to a notebook/netbook driven market certainly has a significant influence on this trend. Other factors include the natural price erosion in the mainstream capacities as new technologies/capacities emerge, competition between manufacturers to gain market share during the largest production quarter of the year, as well as management of production/supply levels in a volatile market.

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