Hard Disk Drive Shipments Expected To Drop 3.9% In Q1 Due To Tablet Impact (STX) (WDC)
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With tablets stealing sales of conventional netbook PCs in ever increasing numbers, IHS iSuppli now expects a low single-digit decline in shipments of hard disk drives (HDDs) in the first quarter.
HDD shipments in the first quarter of 2011 are anticipated to reach 160.9 million units, down 3.9 percent from 167.5 million in the fourth quarter of 2010, the research firm said.
In addition to the impact from tablets, other factors will contribute to the decline in shipments. Those include a seasonally slow period, an oversupply and declines in in four of the six major segments.
"Tablets like Apple Inc.'s (Nasdaq: AAPL) iPad represent a major threat to HDD demand," said Fang Zhang, analyst for storage systems at IHS. "Among the various computing segments in which HDDs are used, the netbook - with lower computing capabilities than either a desktop or laptop - is considered the most vulnerable to being supplanted by tablets, which do not use hard disks as storage media. And as tablet adoption gains momentum, netbooks will suffer even greater declines."
This decline, while expected, is a negative for hard disk drives makers Western Digital (NYSE: WDC) and Seagate Technology (NYSE: STX).
HDD shipments in the first quarter of 2011 are anticipated to reach 160.9 million units, down 3.9 percent from 167.5 million in the fourth quarter of 2010, the research firm said.
In addition to the impact from tablets, other factors will contribute to the decline in shipments. Those include a seasonally slow period, an oversupply and declines in in four of the six major segments.
"Tablets like Apple Inc.'s (Nasdaq: AAPL) iPad represent a major threat to HDD demand," said Fang Zhang, analyst for storage systems at IHS. "Among the various computing segments in which HDDs are used, the netbook - with lower computing capabilities than either a desktop or laptop - is considered the most vulnerable to being supplanted by tablets, which do not use hard disks as storage media. And as tablet adoption gains momentum, netbooks will suffer even greater declines."
This decline, while expected, is a negative for hard disk drives makers Western Digital (NYSE: WDC) and Seagate Technology (NYSE: STX).
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