History 2001: Small HDDs Clash in Consumer Applications

Flash cards and HDDs will clash in consumer device markets through the next decade, according to research published jointly by Trendfocus and the Institute of Information Technology (IIT).

MP3 players, digital still and video cameras, PDAs, and mobile phones are a few of the markets that will be hotly contested by suppliers of flash and small HDDs.

“Consumer devices will be the battleground between flash and small HDDs,” states Noboru Kubokawa, MD, IIT. “1.8-inch and 1-inch HDDs are much cheaper than flash, and have improved ruggedness and reliability. Almost any device that currently uses flash can potentially use a small HDD.”

The market analysis disclosed that over 12 million flash products were sold into the digital camera market in 2000. The consumer market for small storage devices like flash, HDDs, and optical will grow 70% annually through 2005. Rising demand and the need for more storage capacity is drawing the interest of the HDD industry.

“IBM, the pioneer of the 1-inch HOD, and several other companies are eyeing the digital camera and MP3 markets,” adds Mark Geenen, president, Trendfocus. “We expect more companies will enter the small HDD field, which will ultimately drive down prices of storage and end-user devices.“

The long-term trend favors HDDs in many consumer applications.

“Consumer device capacity requirements will spiral upward in the coming years, and HDDs are far better suited to higher-capacity needs,” states Geenen.

Prices for 1-inch HDDs will fall dramatically starting in 2002, further extending the price/performance leadership of HDDs.

“The sale of HDDs to consumer applications exceeded 2 million units in 2000, with game consoles, PVRs, MP3 players, digital cameras, and a host of other emerging devices anchoring demand. The market will grow 79% annually through 2005 to over 100 million HDDs. In most consumer devices, HDDs are attractive alternatives to flash and optical drives,” Geenen stated. “New applications are appearing daily, complementing PVRs, MP3 players, digital still and video cameras. Game consoles, like Microsoft’s Xbox, will really drive growth starting this year.“

This article is an abstract of news published on issue 161 on June 2001 from the former paper version of Computer Data Storage Newsletter.