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Higher capacity HDD prices slowly on its way to pre-flood levels

Posted at 29 May 2012 17:05 CET by Jan Willem Aldershoff

Figures released by market research company CONTEXT, show that sales through distribution of internal hard disk drives (HDD) grew by 36% across Western Europe during the first four months of this year. The HDD market in the United Kingdom grew by 78% with sales of 1TB drives  showing a jump of over 52% in sales compared to 31% across Western Europe.

Overall, sales were primarily driven by hard disk drive manufacturers Seagate and Western Digital, with the latter showing sales increasing by an average of +14% per month during the first four months of this year. Both Seagate and Western Digital  currently have a market share of about 44% year to date.

Although 500GB drives continue to remain strong, CONTEXT notes that the market has seen a spike in the sale of 1TB drives with Western Digital showing sales tripling over the first four months of the year. This is partly due to a 25% reduction in prices as well as an indication that the market for higher capacity drives is slowly on its way back up to pre-flood levels.

“Although average selling prices in April were still up +58% year on year, we are now seeing prices gradually on their way back down from the high November”, said Senthuran Premakumar, Enterprise Analyst at CONTEXT. “Going forward, we expect to see sales is increasing further for both 1TB as well as other highcapacity drives.”

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There are 5 comments

Posted on: 29 May 12 22:32
    Others are reporting that hard drive prices seem to have stabilized at 70% or so above pre-flood prices. And Seagate and Western Digital are reporting record gross profit margins now.
    Blown to smitherines
    Posted on: 29 May 12 23:09
      The 500GB hdd, the lowest capacity, curent technology, hdd that will do the job for $100au/$50us.
      I remember right before the crisis when I was installing 1TB/2TB hdd's at home, anf 500GBs at work.

      After the crisis, I was installing 160GB hdds at work when ssds broke down. Premium prices for old slow technology 5400Rpm Hdds.
      Damn I was peeved.
      Dedicated DoMi groupie
      Posted on: 30 May 12 05:35
        I just bought 2 1.5 tb drives for $79 each. I think that is just about preflood prices.
        Blown to smitherines
        Posted on: 30 May 12 05:54
          You're a bit ahead of the curve then .....
          I can get a 1.5TB@7200rpm for $150 and 2TB@7200rpm HDD for $120-130
          Preflood, 2TB HDD's were hovering around $100au .... .... $75US (actually I managed to swangle a pair of 7200RPM HDD's for $75-80 each).

          Taking into account that the Australian Dollar is now practically parity with the US dollar, rather than hovering around the 75c mark ... the adjusted price is $160au ....

          That's still a hefty 65-70% markup on pre-flood levels.
          MyCE Resident
          Posted on: 30 May 12 22:51
            I got my 1tb wd caviar black drive about a year before the flood for around $97.
            The hard drive makers have already publically said those pre-flood prices are NOT coming back.. and although you can never say never their intent is to keep the wholesale prices at such a level that you will never see prices go lower until the next generation drives are at least hitting retail (HAMR technology drives starting at 4tb using 2 or 3 platters). Parallel drives will end with 1tb per platter in the 3.5" form factor, then move onto Heat Assisted Magnetic Recording substrate).

            They've had their 5 years to solve the longevity issues associated with HAMR and need to release product in 2013.

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