HDD market revenue to decline by 12 percent this year

The hard drive disk market is expected to suffer a pretty major decline in the coming year after a slow decline could already be seen in 2012.

According to iSuppli the global HDD market revenue will decline by approximately 12 percent in 2013 settling at an estimated $32.7 billion revenue compared to the previous $37.1 billion from 2012. On top of this gross and operating margins for HDD manufacturers are also expected to decline as a result of falling prices.

According to Fang Zhang, analyst for iSupply “the HDD industry will face a myriad challenges in 2013. Shipments for desktop PCs will slip this year, while notebook sales are under pressure as consumers continue to favor smartphones and tablets. The declining price of SSDs also will allow them to take away some share from conventional HDDs.”

However, even this decline in prices and revenue HDDs will still continue to dominate the market for the foreseeable future. This is mainly because of storage capacity HDD having a big lead over SSDs in regards to the dollars/gigabyte ratio. And this trend will continue in 2013 with average prices for HDDs expected to fall by approximately 7%. “HDDs will continue to be the dominant form of storage this year, especially as demand for Ultrabooks picks up and hard drives remain essential in business computing,” Zhang added.

On a company front Western Digital is expected to continue to battle with Seagate Technologies for dominance in the market space in both revenue and shipments especially on the enterprise side of things. According to iSuppli Seagate held about a 50% in the enterprise market but new evolving technologies from Western Digital could send them to second place in 2013. 

Source: iSuppli | Hard drive image via Shutterstock

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bviktor said,
Just let them die. They completely deserve it after way they acted after those stupid floods.

Oh be quiet..... do you run a SAN or a massive storage system? If these companies die the price would skyrocket.... We have a massive SAN system that has tons of drives in it, to do it as SSD will not be viable for a very long time... especially with databases that update almost non-stop, we'd wear drives out way to fast and be replacing them at a higher rate then we do HDD's right now... sure file storage arrays might be ok, but when you do a million plus transactions a minute, you can wear SSD's down fast.... HDD's aren't going anywhere especially in enterprise for a long time..... even big places like Facebook and Google use HDD's in the hundreds of thousands range because they are cheaper for the quantity of storage they need

Floods are long gone, and even when floods, just one country getting effected meant increase price by double or in cases triple ??

And as I said, floods are long gone but still prices are not refreshed yet...

Let hard drives die? Can you point me to a reasonably priced 2 Terabyte External SSD please? I bought my last external 2TB HDD for £100.

bviktor said,
Just let them die. They completely deserve it after way they acted after those stupid floods.

I believe the reason for the jacked prices was when the floods hit, all the OEM companies bought stockpiles of hard drives which created a huge shortage.

What is silly is how long it's taken for hard drive prices to come down, and they are still too high.

reLapse said,
Wouldn't be because retailers unnecessarily jacked the price up and blamed the floods.

Not only price, they also lowered warranty.

reLapse said,
Wouldn't be because retailers unnecessarily jacked the price up and blamed the floods.

Um, I think you meant the hard drive manufacturers NOT the retailers. The manufacturers are the real blame for jacking the prices up, the retailers probably had no choice but to follow suit.

ir0nw0lf said,

Um, I think you meant the hard drive manufacturers NOT the retailers. The manufacturers are the real blame for jacking the prices up, the retailers probably had no choice but to follow suit.

I'm pretty sure the reason for the price hike was because OEM companies bought a **** ton of hard drives incase there was a shortage.

Not really, in the last several months, I believe 120-128 GB SSD's are still hovering around the $70-$90 mark on a decent day. That should have likely come down since then.

Sly_Ripper said,
SSDs are coming down in price pretty fast now.

Awesome. You just let me know when I can get a 2TB SSD that will survive my daily write cycles for 5 years, won't you?

Doesn't matter how cheap SSDs become, most people say they are not trustworthy enough to be used for storage.
As for running your operating system... a definite must. Extremely fast.
I personally wouldn't want an SSD with a ton of space, cuz it would sure suck spending a bunch of money, loading it up with a ton of mp3s, movies, etc. etc. and then the thing decides to just die for no apparent reason.

LUTZIFER said,
Doesn't matter how cheap SSDs become, most people say they are not trustworthy enough to be used for storage.
As for running your operating system... a definite must. Extremely fast.
I personally wouldn't want an SSD with a ton of space, cuz it would sure suck spending a bunch of money, loading it up with a ton of mp3s, movies, etc. etc. and then the thing decides to just die for no apparent reason.

and SSD's with Trim and GC running, you delete something, tough luck recovering it.... at last on a HDD you can recover files easily after a delete

LUTZIFER said,
Doesn't matter how cheap SSDs become, most people say they are not trustworthy enough to be used for storage.
As for running your operating system... a definite must. Extremely fast.
I personally wouldn't want an SSD with a ton of space, cuz it would sure suck spending a bunch of money, loading it up with a ton of mp3s, movies, etc. etc. and then the thing decides to just die for no apparent reason.

I'm confident that in the near future, we'll find a way around that.

neufuse said,

and SSD's with Trim and GC running, you delete something, tough luck recovering it.... at last on a HDD you can recover files easily after a delete

Personally, I like that you wouldn't be able to recover stuff.

LUTZIFER said,
Doesn't matter how cheap SSDs become, most people say they are not trustworthy enough to be used for storage.
As for running your operating system... a definite must. Extremely fast.
I personally wouldn't want an SSD with a ton of space, cuz it would sure suck spending a bunch of money, loading it up with a ton of mp3s, movies, etc. etc. and then the thing decides to just die for no apparent reason.

SSDs are technically more reliable, but the key problem is down to the different controllers being used. Compared to consumer hard drives, SSDs are still early days but they've made huge progress in making them far more reliable than they have.

I have 3 SSDs, 2xVertex (the original series) that have been fine and no issues with) and the Agiligy 3 series which I've had zero problems with.

2yrs ago i could get a 2tb drive which used 3 platters for £50, now i can get a 1tb 2 platter for £53 or a 2tb 2 platter for £70.

People don't want to buy 2tb-4tb drives anymore as they cost so damn much. I'm sure pc sales must have dropped by a few percent due to the price of 1tb drives being so high, thats probably an extra £15 cost for OEM's on each cheap pc sold.

Also i believe there are just 3 harddrive makers now as they keep buying each other out and then jacking up the prices. Samsung were cheap and high quality then they were bought out

torrentthief said,
People don't want to buy 2tb-4tb drives anymore as they cost so damn much

Guess I'm not people.
Thanks for that.
I enjoy refreshing my hard drives every few years to max out my bays/ports with the largest capacity hard drives at the best prices.

I'm eager to get 4TB drives to replace the 8 2TB drives I Have today.
Once prices get better.

torrentthief said,
2yrs ago i could get a 2tb drive which used 3 platters for £50, now i can get a 1tb 2 platter for £53 or a 2tb 2 platter for £70.

People don't want to buy 2tb-4tb drives anymore as they cost so damn much. I'm sure pc sales must have dropped by a few percent due to the price of 1tb drives being so high, thats probably an extra £15 cost for OEM's on each cheap pc sold.

Also i believe there are just 3 harddrive makers now as they keep buying each other out and then jacking up the prices. Samsung were cheap and high quality then they were bought out

The prices didn't effect OEM companies as they bought a **** ton of stockpiles when the flood hit. That created a huge shortage and the retailers etc jacked the prices through the roof.

Still running a 250GB IDE drive in my system. Over 7 years of power on time recorded; still going strong!

By the time I get my older drives replaced, I'll probably have a big home server system for mass storage and only use SSDs in my PC.

Still have a hard time trusting new HDDs.

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