Notebooks, Windows 7, external hard drives and audio systems drive the computer storage market growth in 2010
According to iSuppli, following the decline in 2009, it is expected that the global operating income of hard disks (HDD) and optical drives (ODD) for computers will increase in 2010, as PC shipments will rise as the global economy recovers.
It is estimated that the operating income of HDDs used for computer applications in 2010 will reach 27.7 billion US dollars, an increase of 18.4% over the 23.4 billion US dollars in 2009. In 2010, ODD operating income for computers will grow to US $ 14.8 billion, an increase of 7.6% from US $ 13.7 billion in 2009. In contrast, operating income of HDDs used for computers fell by 11.7% in 2009, while ODD fell by 6.3%.
Figure 3 shows iSuppli's preliminary estimates of the operating income of the computing platforms HDD and ODD for each quarter in 2009 and 2010.
The economic recovery in 2010 will drive PC sales growth. The notebook market is expected to be particularly strong, with shipments growing faster than desktop computers. This will stimulate a strong rise in HDD shipments. Other factors that stimulate demand growth in 2010 include:
 • New server purchases and data center shift to 2.5-inch HDDs to reduce costs  • Enterprise sector adopts Microsoft Windows 7 operating system  • Increased shipments of external hard drives for storing games, music and computers  • High-quality audio systems Expand the use of storage devices
Rebound in the second quarter
iSuppli predicts that the operating income of computer HDDs in the first quarter of 2010 will drop slightly from US $ 6.7 billion in the fourth quarter of 2009 to US $ 6.6 billion, due to a normal seasonal slowdown. However, HDD operating income will rebound to the level of the fourth quarter of last year in the second quarter of 2010.
On the other hand, the operating income of the ODD market for computers will not rise back to the level of the fourth quarter of 2009-$ 4.1 billion in any quarter of 2010. However, the full-year operating income of the market in 2010 will be higher than in 2009.
In addition, as the market's demand for games, computers and high-quality audio systems grows, ODD's operating income will gradually increase from the fourth quarter.
Therefore, although operating income declined slightly in the first quarter, the HDD and ODD markets for computers will grow strongly, which is good news for all manufacturers in this market.
Author Fang Zhang is a storage system analyst at iSuppli.
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