The past year hasn’t been too great for the PC market. There has been a noticeable slowdown of the market because of a number of reasons. Smartphones and tablets have done exceedingly well in comparison and while they aren’t going to wipe out the PC market completely, they are responsible partly for the slump. The Thailand floods also shut down several hard drive manufacturing companies. Seagate and WD were both affected during the floods and prices of drives shot up further. Demand has continued to rise steadily and supply has reduced and the extra stock has depleted over the end of last year. Prices almost doubled towards the end of last year and the beginning of this year.
Prices expected to drop soon
Now however, things are slowly improving it is said. Digitimes has been in touch with their industry source and it says that prices of hard drives will fall by some 10 percent by the end of April. A 500GB 3.5-inch format drive for example, today that sells for roughly 2,200 Taiwanese dollars, should fall to NT2,000. It’s still much higher than the prices of the same drive before the floods. Prices won’t go back to be completely normal either primarily because of the increased costs of manufacturing drives since the later half of last year.
Demands will continue to rise as Microsoft launches its new operating system, Windows 8, sometime in October this year. There’s also going to be an additional boost in hard drive demand, as Intel launches its upcoming processor lineup which in turn would increase the number of Ultrabooks that are launched. Hard drive companies are being cautious about the year to come because of the continuing success of tablets and smartphones through this year. However, the market is said to do well in the second half of the year so things should improve as soon as the third and fourth quarters arrive.