According to Taiwan media reports, news from HDD makers was previously based on the lower-than-expected PC market performance in the third quarter, and they generally formulated a more conservative fourth-quarter shipment plan. Recently, PC makers, especially notebook makers, began to purchase for the Christmas shopping season at the end of the year. The hard disk market has already experienced shortage problems. This situation may continue until the first quarter of 2011.
Due to the debt crisis in many countries in the European region, the euro fell sharply in the second quarter of this year against the U.S. dollar, causing notebook manufacturers to generally lower their notebook configurations for sale in the European market to maintain profit margins. Modifying the configuration of the hard disk and lowering the storage capacity are often the first methods to reduce the cost of the entire machine. This factor led to a significant decline in demand for large-capacity hard drives in the second and third quarter of this year.
Based on the market's demand for 250GB, 320GB and other small-capacity HDDs is significantly higher than 500GB or higher capacity models, while the hard drive overall demand is weak, most HDD manufacturers decided to maintain the production in the fourth quarter is comparable to or slightly higher than the third quarter On the level, and most of the production of small and medium-capacity products.
However, as DRAM memory prices began to dive recently, notebook makers decided to upgrade configurations and purchase higher-capacity drives with the cost savings from memory. The demand for notebook hard drives that have a capacity of 500 GB or more has recovered since September and has since grown dramatically. In October, this increase continued, and hard drive manufacturers have begun to experience shortages of raw materials.
Since hard disk manufacturers need at least two or three months of buffering period to adjust the production plan, the out-of-stock condition of the hard disk should continue until the first quarter of 2011. During this period, the price reduction trend maintained by the hard disk for a long time may be reversed.
Due to the debt crisis in many countries in the European region, the euro fell sharply in the second quarter of this year against the U.S. dollar, causing notebook manufacturers to generally lower their notebook configurations for sale in the European market to maintain profit margins. Modifying the configuration of the hard disk and lowering the storage capacity are often the first methods to reduce the cost of the entire machine. This factor led to a significant decline in demand for large-capacity hard drives in the second and third quarter of this year.
Based on the market's demand for 250GB, 320GB and other small-capacity HDDs is significantly higher than 500GB or higher capacity models, while the hard drive overall demand is weak, most HDD manufacturers decided to maintain the production in the fourth quarter is comparable to or slightly higher than the third quarter On the level, and most of the production of small and medium-capacity products.
However, as DRAM memory prices began to dive recently, notebook makers decided to upgrade configurations and purchase higher-capacity drives with the cost savings from memory. The demand for notebook hard drives that have a capacity of 500 GB or more has recovered since September and has since grown dramatically. In October, this increase continued, and hard drive manufacturers have begun to experience shortages of raw materials.
Since hard disk manufacturers need at least two or three months of buffering period to adjust the production plan, the out-of-stock condition of the hard disk should continue until the first quarter of 2011. During this period, the price reduction trend maintained by the hard disk for a long time may be reversed.
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