The 2.5-inch external HDD market segment registers increasingly intensive competition

Nov 24, 2008 11:06 GMT  ·  By

It seems that the mainstream size of enterprise-grade hard disk drives is on its move from the current 3.5 inches toward 2.5 inches due to the major power gains the smaller form factor HDDs offer. According to Paul Martin, Western Digital senior director for Worldwide Channel Marketing and Enterprise, a 10,000rpm 2.5-inch HDD consumes 35 percent less power than a 3.5-inch one, which could bring a lot of benefits.

Martin stated that WD offers optimal solutions that combine the highest capacities offered by 3.5-inch HDDs and the power efficiency of the 2.5-inch drives. A 30 percent power gain can be spotted when using mixed solutions, while the total capacity diminishes by only 10 percent, Martin revealed.

The average power consumption per HDD has decreased from 240W (watt) in 2004 to 144W in 2008 due to technological advancements. At the same time, average storage capacity per HDD has quadrupled, added Martin. The global demand for enterprise-grade HDDs in 2008 should rise to 49.3 million units according to IDC, he said.

2.5-inch storage solutions seem to be an attraction point for many industry players, as the recent news has showed. The increasing use of portable consumer electronics has attracted many vendors to the area starting with the second quarter of the year, and the competition in that segment is turning increasingly intensive. Moreover, local retail channels in the Taiwan market expect a price war to burst shortly.

Leading international own-brand makers/vendors, including Seagate Technology, Western Digital, Toshiba, Hitachi Global Storage Technologies and Maxtor, used to dominate the market segment of 2.5-inch external HDDs, yet foreign and local players have entered the stage lately. The newcomers' list includes Philips, Asustek Computer, BenQ, Freecom, Buffalo, Synnex Technology International, Samsung Electronics, Memorex, and Transcend Information (brand name - T.sonic).

At the moment, the retail price for a 250GB 2.5-inch external HDD ranges from $69 to $75, state market sources.