A year after the flooding in Thailand devastated the hard disk drive (HDD) industry, production has returned to normal levels, according to IHS iSuppli. In fact, HDD shipments to the computer market are expected to reach record levels by the end of the year.
This year, HDD shipments to the computer market are forecast to rise 4.3 percent from last year, to 524 million units, the research firm said in a press release. Demand from the enterprise market and the release of Windows 8 are behind the uptick.
The increase "is the result of greater demand from the consumer and enterprise PC segments, both of which continue to clamor for disk space in order to hold storage-intensive media like music, videos and other forms of social media content," Fang Zhang, analyst for storage systems at IHS iSuppli, said in the release. "As downloadable media content becomes more readily accessible and affordable, so will the quest for storage space continue in order to satisfy unremitting demand."
HDD manufacturing and component supply have completely recovered from the Thailand floods, Zhang said. HDD shipments are expected to continue to rise through 2016. According to IHS iSuppli, demand will be driven by nearly all segments of the computer market, including desktops, notebooks, enterprise servers, and storage systems. Ultrabooks will also give the market a boost.
@Cryptoman: I don't think the increased supply will have an impact on the prices in the next two, three months. There's already a sufficient demand and a gap in the market that the supply will fulfill. Once that's done with, then the prices may fall if the supply remains constant.
Nemos I don't think there will be much if a difference here in price since this is not a monopoly market and vendors are there everywhere. So no fir a price change IMO
As I have said here many times the only thing we can do sometimes is to wait and we will see but the important fact is that the hard disk drive has recovered.
If the forecasts are accurate, we can expect that prices will be affected. Besides prices reduction, there is another good news: it is good sign that the global economy is recovering.
Hospice I don't think the forecast can define the price changes here since they know even they do not reduce the price the buyers still be there since there is no other alternative
Surely its something which themarketing team should look into but that eos not meant should be handled only by them. It does involve other factors too.
Focusing is something where as performing is totally different from the above mentioned. I think focusing is ok as long as it can be done but if not you have to make it forcefully work since thee is a demand for the product.
@ Nimanthad:In order to boost the speed itself do you think we should go through such a radical change ? Or do you feel that there are so many other functional benifits involved in it ?
Yrs there are more than enough vendors and that Is the reason why a price reduction will happen since everyone will try to sell their own at any cost . True there is no alternative but it can't hold the price
it is good sign that the global economy is recovering.
@Hospice_Houngbo, no doubt global economy is recovering, but lets not forget that most of the recovery is because of stimulus being given by the government. Let's hope this recovery will continue even if the stimulus is withdrawn by the government.
I dont know about the level of reliance on government but the government might not withdraw support as I believe, financially the government is not dependant on HDD market as there are many agriculture products as well in which Thailand excels.
Congratulations to the everyone involved in getting production back on track in the devasted areas. This is a miracluous feat of human perseverance and ingenuity.
>>demand will be driven by nearly all segments of the computer market, including desktops, notebooks, enterprise servers, and storage systems<<
The demand would be driven by enterprise and storage machines especially. Meanwhile, a big plus for HD market and that would probably drive down soaring prices being experiencing since the disaster occured.
HDD shipments to the computer market are expected to reach record levels by the end of the year.
@Barbara, thanks for the post. This is really good news. Finally we are seeing recovery in HDD market, this clearly shows that market is showing signs of recovery after deep recession. Lets hope this is just the beginning of the next uptrend.
The recovery of Thailand HDD market is a good sign for consumers as now dont have to switch to expensive alternates as cheaper products will be available from Thailand.
In prior blogs, I believe one of the research companies estimated that prices will also start to decline once manufacturing has ramped up. However, I think they will remain slightly above pre-flood levels becuase demand has also rebounded.
EBN Dialogue enables and encourages you to participate in live chats with notable leaders and luminaries. Not only editors and journalists, but the entire EBN community is able to comment and ask questions. Listed below are upcoming and archived chats.
Archived Dialogues
Thailand Stages a Comeback Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Euro-Crisis: What It Means for High-Tech Firms Join EBN Editor in Chief Bolaji Ojo and Contributing Editor Jennifer Baljko on Thursday, July 12, at 10:00 a.m. EDT for a Live Chat on high-tech and Europe's economic difficulties.
Microsoft Surface: Potential Winners & Losers What are the implications for the electronics industry supply chain of Microsoft Corp.'s decision to launch its own tablet PC? Join industry veteran and EE Times' systems and OEM expert Rick Merritt on Tuesday, July 3, at 12:00 pm EDT for a Live Chat on this subject.
Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Peter Drucker famously said "Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window." Yet in the razor's-edge world of electronics—with a lean supply chain and just-in-time demands—the need to know the future is vital.
While no one really can accurately predict the future, we can take guidance from another Drucker saying which is the best way to predict the future is to create it.
You've heard the saying "the No. 1 supply chain risk is your people." That hasn't always been the case. But today's complex global supply chain requires a new type of multitalented employee. It's one who understands, finance, marketing, economics, is savvy with technology, graceful with relationships and can think analytically.
Where are these people? Are universities properly preparing the next generation supply chain professionals? How do train your existing workforce for these new, demanding positions?
Brian Fuller, editor-in-chief of EBN, will lead a 60-minute Avnet Velocity panel discussion that will ask and answer these and other questions swirling around today's supply-chain talent challenges.
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