Hard-drive makers enjoy price bumps
Demand for high-capacity drives in digital video recorders, set-top boxes and other consumer devices leads to slight price rise.
Seagate Technology saw the average selling price of its drives rise to $79 in the first quarter, up $3 from the previous quarter, according to research company iSuppli.
Western Digital saw its average selling price rise to $60, an increase of $1. And Maxtor got a $4 nudge to achieve an average selling price of $75.
The bump came about in part because of demand for high-capacity drives in digital video recorders, set-top boxes and other consumer devices.
"These applications typically use drives with capacities ranging from 160GB to 500GB," iSuppli said in a research report. "The PC maker's density sweet spot is 80GB."
Demand for 1-inch diameter drives, which are incorporated in small music players and now cell phones, has helped, too.
A shortage of recording media also contributed to the price hikes.
The slight rise is something of a vindication for drive makers, who started to move into the electronics market a few years ago as a way to ameliorate the tough economics of the hard-drive industry.
Although the trend toward drives in consumer electronics devices will likely reduce some of the pressure on drive makers, making drives will remain a tough way to earn a living. The majority of drives still get consumed in the PC market, and many drive makers still regularly lose money.