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Hard drive prices to remain high through 2014

Lucas Mearian | Feb. 14, 2012
Hard disk drive supplies will continue to languish due to last year's floods in Thailand and prices will continue to remain high through 2014, according to two different research firms.

The annual rate at which hard disk drive areal densities increase has slowed in recent years, Coughlin Associates said.

However, drive capacities continue to grow due to technology advancements such as Heat-Assisted Magnetic Recording (HAMR). While hard drive areal density growth has slowed, storage capacities continue to rise: 3.5-in. HDDs with storage capacities of 12TB and 2.5-in. HDDs with 6 B are expected by 2016.

Because of slower areal density growth, user companies will have to spend more per gigabyte of drive capacity over the next two years. The average hard drive capital equipment spending per year between 2008 and 2016 is estimated at about 7.2% of hard drive industry revenue.

 

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