Posted on Friday, January 25 2013 @ 12:00 CET by Thomas De Maesschalck
X-bit Labs
compiled a chart of the average selling prices of HDDs based on the quarterly earnings reports from Seagate and Western Digital. The reports reveal that in Q4 2012 (fiscal Q2 2013), the average price of a HDD was around $62. Prices have gradually come down since the Thai Flood crisis, but they're still elevated above "pre-flood" levels.
Obviously, just average selling prices of hard disk drives cannot fully describe the market situation by themselves since they are affected by multiple factors, such a product mix, seasonality, product performance and so on. Nonetheless, it is evident that the HDD ASPs peaked in Q4 2011 (Q2 FY2012) and were on the decline trend since then.
At present WD is trying to sustain average selling prices on certain levels and avoid further drops since it will negatively affect its margins and competitive abilities in the long-term. The company’s new chief executive said that it limits production levels in order not to produce excessive inventory and then sell it at low prices. At the same time, Western Digital is looking forward to make its business and products more economically efficient, which should help the company to survive even with soft market demand and low ASPs.
