Current HDD prices in line with pre-recession levels
The hard drive industry was hit particularly hard by the 2011 floods in Thailand, which is the second biggest producer of hard drives behind China. The devastating deluge was accompanied by a sharp increase in hard drive prices, with the average selling price for HDDs shooting up 28 percent to reach $66 in Q4 2011 (Q2 FY2012). Although a return to pre-flood prices does not seem likely in the immediate future, things aren’t nearly as bad as they were an year ago.
According to data filed by Seagate and Western Digital with the Securities and Exchange Commission (SEC) and compiled by X-bit labs, the average selling price of HDDs during the last two quarters of calendar 2012 (Q1-Q2 FY2013) declined to $62 - $63 per unit. While still far from the pre-flood prices of between $45 and $55 per unit, the current levels are reminiscent of the prices observed just prior to the global economic downturn in 2008.
