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Pressure from SSDs and declining demand will affect the market

The traditional hard drive market has been under assault from various factors over the last several years. One of the biggest factors affecting hard drives has been the decline in the computer industry. With fewer sales of computers, fewer hard drives are required leading to declining profits. At the same time, as notebooks get thinner, manufacturers are increasingly using solid-state drives.

Market research firm iSuppli reports that hard drive market revenue is expected to decline in double-digit numbers during 2013. The research firm is predicting revenue of $32.7 billion for 2013, a decline of 11.8% from 2012. The research firm also believes that revenue for the hard drive market will be flat in 2014 with a revenue forecast of $32 billion.

“The HDD industry will face myriad challenges in 2013,” said Fang Zhang, analyst for storage systems at IHS. “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.”

ISuppli also expects that gross and operating margins for hard drive manufacturers will continue to decline thanks to price erosion in the market. Despite declining profits, the research firm predicts that hard drives will continue to be the dominant form of storage during 2013, particularly in the ultrabook and business realms.

Source: iSuppli

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Yes, but don't overlook other opportunities.....
By GotThumbs on 2/6/2013 8:55:26 AM , Rating: 2
Yes, many consumers are by-passing a desktop computer or upgrading to SSD boot drives or going towards laptops or tablets for their web content and FBing, but HDD companies should not overlook a growing trend by many tech-savvy consumers. Techies are always early adopters and as time provides simpler setups that are more user friendly, then general consumers will jump on board. I'm talking about personal clouds and home storage. I have my own home-server with 4 terabytes of storage. This is small compared to many others out there, which can be between 10 and 20 terabytes. This server hosts all my music, archived movies, documents and backups of all my families computers. I can stream the movies/music using my smart TV, computer, tablet, or smart phone (Android of course). I use Subsonic for the streaming of my music catalog (listening right now). The one time cost/donation is very reasonable rather than a yearly fee that Apple charges. This central repository allows streaming of music and video anywhere and I'm in total control/ownership of it. Google music is a free service up to 20 gigs, but having to upload each song is too time consuming for me. Apples walled garden will always be avoided and you still have to pay to access ICloud content you purchased from Apple. Only a fool would choose this option IMO.

Home-servers will continue to grow over time as it puts control back in the consumers hands. I haven't even touched on the additional things one can do with a home-server. Add security cameras to record activity and notify you at the same time, also syncing/interfacing with future smart appliances. Program you coffee maker from your phone, close garage door, etc..

Best Wishes for the year,

RE: Yes, but don't overlook other opportunities.....
By 91TTZ on 2/6/2013 9:49:05 AM , Rating: 2
Home-servers will continue to grow over time as it puts control back in the consumers hands. I haven't even touched on the additional things one can do with a home-server.

I agree with this. While all the PC hardware and software makers would love everyone to adopt a "rent" approach where you can't own your own stuff, the consumer is the one that drives demand and people don't like being nickel and dimed to death.

The average computer user may not understand the technical aspects of a thick client vs. thin client setup, but they surely will understand that they're being asked to pay a service fee for something that used to get for free after they bought it. Eventually "cloud" and "service" will earn a negative connotation because it will become synonymous with "you have to keep paying for it". With the economy getting worse for the average person, people are starting to pay closer attention to where their money goes.

By Reclaimer77 on 2/6/2013 11:32:44 AM , Rating: 2
Not sure how we're defining the "average consumer". But it seems to me the average consumer wouldn't be tackling a DIY home server build. Especially when comparing the fairly large upfront price to the pennies a day a cloud service offers.

By zephyrprime on 2/6/2013 2:41:32 PM , Rating: 2
Yeah, renting is actually very expensive. Take a look at amazon's cloud service pricing. It's much cheaper to own than it is to rent!

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