Hard Drive Revenue About To Take a Double-Digit Dip

Lucas123 writes "Ultrathin notebooks, smart phones and SSDs are all putting pressure on the hard drive market, which is set to take an almost 12% revenue loss this year, according to a new report from IHS iSuppli. Hard drive market revenue is set to drop to about $32.7 billion this year, down 11.8% from $37.1 billion last year. At the same time, In what appears to be a grim scenario, the optical disk drive industry is expected to encounter continued challenges this year, and optical drives could eventually be abandoned by PC makers altogether."

Comments

Low end drives are too expensive

[MarioMax]

It just drives me absolutely crazy that low end hard drives are as expensive as they are, and stubbornly not dropping. Take for example these prices on Newegg for a new internal desktop hard drive:

250GB - $49.99 ($2.00 per 10 gigabytes)
320GB - $59.99 ($1.87 per 10 gigabytes)
500GB - $58.99 ($1.18 per 10 gigabytes)
1TB - $79.99 ($0.80 per 10 gigabytes)

I mean, don't get me wrong, the 1 terabytes are an attractive price on a price-per-gigabyte point of view. But there are times where you simply don't need (or want) a large drive, and a small one would do, or your budget for a larger one doesn't exist and you need a smaller drive. But the price per gigabyte is so out of whack on the low end models, it doesn't make sense to waste your money. You'd think stores and suppliers would want to dump their low end inventory for the larger capacities, but apparently they aren't in any hurry.

Re:Less demand

[Miamicanes]

For a hint of where the market for spinning drives is going, look at DLP. DLP never totally went away... it just walked away from the low end, then milked the high end for years.

SSDs are getting cheaper, but for raw bulk digital tonnage and petabytes of ripped Blu-ray pr0n, it's still hard to beat spinning hard drives. Manufacturers will just quit making small drives as SSDs catch up, add platters until they can't fit anymore into a 3.5" enclosure, then revisit the past and reintroduce 5.25" hard drives, just like Quantum did ~15 years ago. At some point (probably 10-20 years from now) SSDs might eclipse spinning hard drives, but I wouldn't write them out of the picture TOO soon. We'll be buying them LONG after Joe Sixpack and his kids have forgotten what they are.

Optical media will probably be around longer, as long as Hollywood doesn't manage to kill it off, because it has one concrete advantage: longevity (as long as it's not based on organic dyes). BD-R media is likely to be around (in single, 2, 3, 4, or more) layer forms for a really, really long time.

Prices won't necessarily go up per se, but drives will probably get more expensive over time because the low end will just cease to exist, and manufacturers will try to make the drives bigger, faster, more redundant, (god forbid) repairable, or some permutation of the above, while maintaining the same price points and gradually just eliminating the lower ones until the only spinning drive you can buy is a 5.25" 500TB Western Digital Diplodicus Max with 256GB flashcache for $299.

Re:Less demand

[hairyfeet]

Actually if anything I have a feeling HDDs are gonna have a "bounce" in a year or two as all those that got cheap SSDs get burnt when they flip the switch and find all their data gone.

The problem with SSDs is frankly they have never really licked the controller issues and as they add more space the problem just seems to be getting worse. I have honestly never seen an SSD die from the cells being used up but I have seen a LOT of SSDs that had the controller fail and take the drive out. Over at coding horror they labeled this the hot/crazy scale in that to get the hot performance of SSDs you had to put up with the crazy failure rates. While those of us who are religious about backups won't have a problem with this most folks are NOT religious about backups and WILL get bit in the ass when they flip the switch one day and just find their data gone forever.

So I have a feeling when all those cheapo SSDs start going tits up there is gonna be a lot of folks that write off the tech and go back to HDDs, say what you will about HDDs they usually give you plenty of warning before going tits up.