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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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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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