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HDD semiconductor sales plunge

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Worldwide HDD chip sales went south 12 points last year. And things ain’t going to get any better for the vendors. Their revenues were £4 billion in 1998, against $4.5 billion in 1997. By 2002, the market will only be worth $3 billion, IDC predicts. System-on-chip sales will grow, but most other component sales will fall. The sector is squeezed by increasing integration and falling component prices. In 1997, IDC notea, The average HDD contained 10 or 11 integrated circuits(ICs), worth $35.19. By 2002, this will drop to 3 or four Ics, worth $12.29. The 3.5 inch form factor will increase its dominance in the HDD market, with revenue share jumping from 61 per cent in 1998 to 69 per cent in 2002. ®

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