HDD prices will remain above pre-disaster levels until 2014

Published:2012/6/11 4:47:00 Author:Ecco From:SeekIC

Market research firm IHS iSuppli indicates that the average selling prices (ASPs) of hard disk drives (HDDs) may remain higher level in the rest of this year because of rampant flooding in Thailand last year. And the HDD ASPs are expected to remain inflated until 2014. HDD production is rapidly recovering from the impact of the floods, which forced the closure of several HDD and HDD component production facilities.

HIS also analyzes that the ASP for the entire HDD market soared to $66 in the fourth quarter of 2011 after flooding with growing 28 percent from $51 in the third quarter. The ASP held steady at $66 in the first quarter, and is expected to decline marginally to $65 in the second quarter.

In the third quarter, shipments are expected to rise by another 10 percent to 176 million. It shows that shipments in 2012 will exceed their 2011 quarterly levels, up from 173 million in the third quarter of 2011. Despite exceeding pre-flood shipment levels in the third quarter, pricing is expected to remain inflated.

According to HIS, the number of PC OEMs which have signed long-term agreements with HDD makers in the second quarter is increasing. These agreements provide shipment guarantees, but lock in pricing that is approximately 20 percent higher than pre-flood levels, IHS said.

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