Fueled by the World’s Appetite for Digital Storage Capacity, HDD Demand Will Continue to Grow, IDC Believes

FRAMINGHAM, MA – June 2, 2008 – The world's prodigious appetite for digital storage capacity continues to fuel hard disk drive (HDD) demand and revenue. Worldwide HDD shipments are expected to grow in 2008, even in the face of economic uncertainty in the United States, and increase at a compound annual growth rate of more than 9% between 2007 and 2012, IDC forecasts. Flash-based solid state disk drives (SSDs) will curtail HDD demand in some markets, but the HDD industry will shrug-off these and other competing storage technologies to attain consecutive years of record-setting HDD shipments and revenue.

"Disk drive OEMs are very aware of the different competing storage technologies that exist today, and will exist in the future," said John Rydning, research director for Hard Disk Drives at IDC. "They will rightly shrug-off these competing technologies for a later day, choosing instead to capitalize on the healthy and profitable opportunities that lie ahead in the hard disk drive industry."

Among key trends of the HDD industry are the following:

* HDD markets least threatened by competing storage technologies such as enterprise storage systems, personal storage devices, and personal video recorders, will compose nearly 50% of total HDD unit shipments by 2012.

* Successive generations of HDD products using perpendicular magnetic recording (PMR) technology will enable average HDD capacities to increase by nearly threefold by 2012.

IDC's study, Worldwide Hard Disk Drive 2008-2012 Forecast: Shrugging-Off Storage Technology Challengers (Doc #212231) presents a forecast of HDD demand both by standard HDD industry form factors, and for the following HDD consumption segments: portable PCs, desktop PCs, enterprise storage systems, servers, personal storage devices, and various consumer electronics products. The HDD market opportunities are discussed in terms of HDD OEM unit shipments, exit-factory revenue, terabytes shipped, and compound annual growth rates for the period 2007-2012, providing the reader with a solid understanding of the current situation and future outlook for the worldwide HDD market.

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 1,000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 100 countries. For more than 44 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.

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