HDD prices are dropping

DigiTimes reports prices of hard drives are down 10 to 20 percent compared to levels seen at the beginning of Q2 2010

Supply had been tight since the second quarter of 2009 causing quotes to remain at a high level until the second quarter of 2010, when Europe's bond crisis occurred and started affecting PC demand. As PC brands started downwardly adjusting their shipment forecast for the third quarter, it relatively helped relieve the shortage of hard drives and even turned the market status to over-supply, as a result, the hard drive makers started reducing their quote.

The sources noted that quotes for capacities over 500GB at the end of June had an average drop of about 20% compared to the beginning of the second quarter, while 250GB and 320GB capacities had an average drop of about 10%.