There is less and less hope for cheap HDDs

According to the latest analysis from IHS iSuppli, current pricing could persist until 2014. The reason can no longer be traced back to production lines at all, as production is already at pre-flood levels in Thailand. 

IHS iSuppli said the average selling price hit $ 28 after rising 66 percent in the last quarter last year. This year, that figure dropped to $ 65, but it’s still significantly far from previous levels - it was $ 51 before the disaster. Analysts say the main reason for this is that only two major players remain in the HDD market to date. This is a very good time for Seagate and Western Digital, as if they agree wisely, they can shape prices and the vision of the hard drive segment to their liking. The two giants now have an 85% market share, compared to just 2011 percent in the third quarter of 62. It seems that the major players have switched to SSDs too soon, where an otherwise serious price war has developed, but the price / capacity ratio is still deplorable due to technological constraints. 

IHS iSuppli estimates that 176 million HDDs will be shipped in the third quarter, which is already ahead of last fall, yet it’s not worth expecting prices to fall drastically until 2014.

Source: computerworld.com