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Disk drives: shipments up, prices down

Disk drives: shipments up, prices down

What`s bad news for disk drive manufacturers is good news for storage buyers: Prices for hard disk drives have dropped to less than a dime per megabyte -- a trend that should be reflected at the subsystem level over the next few months. Analysts at Disk/Trend Inc., a market research firm in Mountain View, CA, expect drive prices to plummet to less than two cents per megabyte in 2000.

Price erosion is due in part to manufac- turers` excess inventories and to heightened competition. Manufacturers such as IBM and Fujitsu are putting the squeeze on market leader Seagate, and other vendors--includ- ing Quantum and Western Digital--have increased their market shares at the high end of the market.

Meanwhile, drive shipments continue to increase. In 1996, reports Disk/Trend, worldwide shipments of drives reached 105 million. This year, some 149 million drives are expected to be shipped, up from 126 million in 1997.

This article was originally published on March 01, 1998