Hard Drive Supplies to Get Better in First Quarter - Analysts

From X-bit Labs: Hard disk drive (HDD) supplies in the first quarter commenced their recovery from the disastrous floods that struck Thailand in late 2011; still, a full recovery of production is still months away, with unit shipments not expected to return to annual growth until the third quarter, according to IHS iSuppli research firm.

“The recovery of global HDD manufacturing has begun and will continue during each quarter of 2012,” noted Fang Zhang, storage analyst for IHS.

Due to production disruptions at HDD suppliers and at component makers, global hard drive shipments in the fourth quarter of 2011 fell by 26% compared to the same period in 2010. Shipments are set to decline by another 13% in the first quarter and by 5% in the second quarter on an annual basis.

The global HDD market won’t return to year-over-year growth until the third quarter, when shipments rise by 2%, followed by a 49% surge in the fourth quarter as the industry snaps back from the previous shortage, according to analysts, which corresponds to plans of both Seagate and Western Digital.

On a sequential basis, shipments in the first quarter are expected to increase by 13%, a dramatic turnaround from a 29% plunge in the fourth quarter of 2011. Shipments are expected to continue to grow by 14% sequentially in the second quarter, by 11% in the third quarter and by 4% in the fourth quarter.

View: Article @ Source Site