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Profitability Returns to the Hard-Drive Industry
Written by Philip Buonpastore
Friday, 04 January 2008
El Segundo, CA - The Hard Disk Drive (HDD) industry underwent a
resurgence in profitability in the third quarter, signaling that the
market is finally is on firmer ground, according to iSuppli Corp.
iSuppli reports that the HDD industry shipped 138 million drives in the
third quarter of 2007, up 19.6 percent from the second quarter,
according to iSuppli. Combined third-quarter revenue for all HDD
suppliers was $8.8 billion, up 22.2 percent from the second quarter.
"The HDD industry as a whole returned to profitability in the third
quarter, marking the first time the business has been in the black
since December 2006," said Krishna Chander, senior analyst at iSuppli.
"The revival of HDD profits is being driven partly by the
consumer-electronics market," Chander said. "Shipments to
consumer-electronics applications represented 17 percent of the total
HDD market in the third quarter, up from 15.5 percent in the second
quarter. iSuppli expects this trend to continue to grow to 22 percent
by the third quarter of 2008. The rising adoption of High Definition
Television (HDTV) is spurring demand for higher-capacity HDDs for
Digital Video Recorders (DVRs), helping to propel consumer electronics
sales."
iSuppli predicts conditions in the HDD market will remain robust in the
fourth quarter, with shipments rising 6.9 percent to 147 million units.
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