Apple iPad sales slamming hard drive makers
[Via AppleInsider]
The outlook for hard drive manufacturers is getting jolted by the popularity of Apple’s iPad as the market wakes up to the reality that a significant segment of personal computers will no longer user mechanical hard drives.
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The original iPod changed things with its use of a small hard drive to store music, allowing it to hold much more than other non-hard drive MP3 players.
But, when it needed solid state memory to build smaller players, it started a trend away from physical hard drives with moving parts.
As the price came down, Apple included more and more of these types of memory – which are faster, more stable and sturdier than comparable hard drives.
Now, we see them in iPads, which is taking sales away for netbooks and smaller laptops – both of which normally have hard drives – as well as see them in the Macbook Air.
So Seagate sees its financial results drop by 72%. The iPad is following an adoption curve unheard of in the industry, with it being quickly taken up even by enterprise units that are normally quite slow to change technologies. They are selling every single one they can make and still can not make enough.
As the article states “Apple’s ecosystem makes its own rain.” Apple is pushing the market to flash RAM devices and depressing the sales of physical hard drives, meanwhile being able to command prices for the components that their competitors can not match, permitting Apple to sell these devices for prices for profits that can not be easily matched.
WHat is interesting is that analysts have not really examined this effect on the storage market until after it happened. They created a whole new category for the iPad – media tablet – as though it was not related to a PC at all.
But even Ballmer called it a PC.