DigiTimes reports demand for hard disks dipped 4 percent sequentially in Q2 2010, which could signal a slowdown in the rampant growth of the PC market in the second half of the year.
"The worldwide PC market was up 25% in the first half of 2010 over the same period in 2009," noted Robert Castellano, president of The Information Network. "Looking further down the supply chain, hard drive shipments in the second quarter of 2010 were down 4% sequentially but up 23% from the second quarter of 2009. There were several factors in the drop: weakness in Europe, destocking by PC customers, and a shift in ordering patterns by PC vendors as they took advantage of lower cost sea versus air freight."
Average hard drive prices decreased by 2% on average in the second quarter, and are expected to remain flat in the third quarter.