Hard drive industry sales will fall 12% in 2013 to $32.7B, IHS predicts, as both slumping PC...

|By:, SA News Editor

Hard drive industry sales will fall 12% in 2013 to $32.7B, IHS predicts, as both slumping PC demand and growing solid-state drive (SSD) adoption take a toll. The low valuations given to Seagate (STX) and Western Digital (WDC), as well as controller suppliers Marvell (MRVL) and LSI, makes it clear the Street sees an industry in long-term decline - all four are working to grow their SSD exposure (I, II), but competition is intense. IHS thinks WDC could eat into STX's 50% share of the high-margin enterprise HDD market thanks to its helium drives.