Fueled by an Expanding Digital Universe, Worldwide HDD Storage Industry to More Than Quadruple Capacity Shipped by 2011, IDC Predicts

FRAMINGHAM, MA – MAY 23, 2007 – By 2011, the hard disk drive (HDD) industry will more than quadruple the total HDD capacity shipped in 2006 to meet the growing storage requirements of an expanding digital universe, according to IDC. Worldwide HDD unit shipments will increase to 675 million units in 2011, while revenue will rise to approximately $37 billion.

"The expanding digital universe creates a tremendous opportunity for HDD storage used in PCs, enterprise systems, and personal storage devices," said John Rydning, research manager for IDC's hard disk drives program. "Despite challenges from competing storage technologies, volatile consumer electronic markets, and enigmatic changes ahead for the computing environment, the fundamental need for additional storage capacity worldwide will continue to generate solid HDD demand."

Looking ahead to this growth, the HDD industry needs to remain vigilant to several emerging trends and realities including:

— Aggressive NAND-flash price reductions that will severely curtail the market opportunity for HDDs in handheld devices, and that will make possible increased penetration of solid state disk drives (SSDs) into traditional HDD markets.

— Growing adoption by enterprise storage customers of both small form factor HDDs to optimize performance and power, and high capacity desktop-class HDDs to optimize capacity and power.

— The risk of installing excess HDD manufacturing capacity that will only serve to exacerbate HDD price erosion, and inhibit industry revenue growth.

IDC's study, Worldwide Hard Disk Drive 2007-2011 Forecast and Analysis: Creating Space for an Expanding Digital Universe, (IDC #206701) examines the market opportunity for HDDs in the following applications: portable and desktop PCs, enterprise storage systems, personal storage devices, and various consumer electronic applications. The HDD market opportunity is described in terms of units, exit factory revenue, and terabytes shipped. Additionally, various metrics, significant trends, and related vendors are analyzed.

To purchase this document, call IDC's Sales hotline at 508-988-7988 or email sales@idc.com.

About IDC

IDC is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community make fact-based decisions on technology purchases and business strategy. More than 900 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 90 countries worldwide. For more than 43 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. You can learn more about IDC by visiting www.idc.com .

All product and company names may be trademarks or registered trademarks of their respective holders.

###