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Guru3D.com » News » Average Selling Prices of Hard Disk Drives after Floods

Average Selling Prices of Hard Disk Drives after Floods

by Hilbert Hagedoorn on: 01/25/2013 02:15 PM | source: | 29 comment(s)
Average Selling Prices of Hard Disk Drives after Floods

Over at Xbitlabs they compiled this great little plotted chart showing how incredibly slow average selling prices of HDDS are dropping back to the “pre-flood” levels, but today’s ASP are on the pre-economic crisis levels. average selling pBased on the recent financial results of Seagate Technologies and Western Digital Corp., average selling price of a hard disk drive in Q3 – Q4 of calendar 2012 (Q1 – Q2 of fiscal 2013) decreased to $62 - $63 per unit, which is considerably higher than $45 - $55 ahead of the flood in Thailand in 2010. 

Prices are gradually returning to their historical levels due to general dynamics of the personal computers market. It remains to be seen whether the ASPs will get back to the “pre-flood” levels, but today’s ASP are on the pre-economic crisis levels.

But is in line with ASPs between $53 and $62 in Q3 2008 (Q2 FY2009), ahead of a major drop of demand for PCs in the following quarters due to global economic. Obviously, just average selling prices of hard disk drives cannot fully describe the market situation by themselves since they are affected by multiple factors, such a product mix, seasonality, product performance and so on. Nonetheless, it is evident that the HDD ASPs peaked in Q4 2011 (Q2 FY2012) and were on the decline trend since then.

At present WD is trying to sustain average selling prices on certain levels and avoid further drops since it will negatively affect its margins and competitive abilities in the long-term. The company’s new chief executive said that it limits production levels in order not to produce excessive inventory and then sell it at low prices. At the same time, Western Digital is looking forward to make its business and products more economically efficient, which should help the company to survive even with soft market demand and low ASPs. “We obviously have more capacity than what we are producing because we are throttling it to what we see as demand. But we are taking actions to reset our capacity potential to a more appropriate level given what we view the secular changes in terms of the overall demand profile for the industry. Not that we do not expect to see growth, but not at the same rates than what we have historically done. […] There are multiple opportunities that we have as an organization to continue to improve our cost structure,” said Stephen Milligan, chief executive officer of WD.



Average Selling Prices of Hard Disk Drives after Floods




« NZXT Kraken X60 gets reviewed and tested · Average Selling Prices of Hard Disk Drives after Floods · Belkin to acquire Linksys from Cisco »

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nicugoalkeper
Senior Member



Posts: 905
Joined: 2006-04-13

#4509805 Posted on: 01/25/2013 03:25 PM
The truth is that the old HDD will become obsolete in time whit the new SDD pushing hard, so they want to make as many money as they can, and then make the move but in max 3 years i think they need to go under 40 or they will not sell them.

WhiteLightning
Moderator



Posts: 29368
Joined: 2007-09-19

#4509810 Posted on: 01/25/2013 03:32 PM
I really want to buy a 4TB drive, but they are too expensive atm imo

schmidtbag
Senior Member



Posts: 6492
Joined: 2012-11-10

#4509815 Posted on: 01/25/2013 03:38 PM
The truth is that the old HDD will become obsolete in time whit the new SDD pushing hard, so they want to make as many money as they can, and then make the move but in max 3 years i think they need to go under 40 or they will not sell them.


SSDs are only good for PCs and low i/o servers. Where I work, SSDs were used in a server and they showed signs of failure within a couple months, where servers with HDDs have been lasting for years.

Koniakki
Senior Member



Posts: 2843
Joined: 2009-09-15

#4509856 Posted on: 01/25/2013 04:24 PM
My 5.5TB HDD space(1x3TB, 1x2TB and a 500GB) are full. I have like 50Gigs left. So I was thinking about the 4TB also,
but for the reasons below I ordered another Seagate 3TB a week ago.

I can get from the e-shop I buy a Seagate 3TB(
ST3000DM00
1) for €110,90 and the 4TB
Hitachi 7K4000
for
€209,90. Really? 99euros difference?

Let's see: 4TB GB/$ ratio: 0.0524c/per GB against the 3TB ratio: 0.0369c /per GB. That translates to almost 42% more expensive per GB. No thank you.

When I bought it on 07 June 2012 the Seagate's 3TB(
ST3000DM00
1) price was €143.90 btw.
That's a 22.93% price drop.

I could justify the the premium if it was faster/better overall, but the Seagate is as fast or even faster sometimes. Not counting reliability/24-7 usage scenarios btw.

http://www.tomshardware.com/reviews/4tb-3tb-hdd,3183-10.html

http://www.storagereview.com/hitachi_deskstar_7k4000_review


IPlayNaked
Senior Member



Posts: 6559
Joined: 2009-10-12

#4509889 Posted on: 01/25/2013 05:03 PM
SSDs are only good for PCs and low i/o servers. Where I work, SSDs were used in a server and they showed signs of failure within a couple months, where servers with HDDs have been lasting for years.


We have an application server here with 6 SSDs in it that has been running non-stop serving about 300 people all day every day for years, as well as taking in EDI, satellite information, and a bunch of other stuff. Not a single drive failure.

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