Recovery in the disk drive industry is underway, according to speakers at the Asia Computer Storage Conference yesterday. John Donovan of TrendFocus Inc told the conference that the market will grow 17% in 1999, reaching 168 million units worldwide, following a two-year slump. According to a Dow Jones report, BT Alex Brown VP Michael Carboy, also speaking at the event, predicted 15% growth rates for the year, and said that he now believed the disk-drive industry was poised for disciplined growth.
Better growth in the PC market and a shake-out of disk drive manufacturers are factors in the recovery, the conference heard. But the high, 20-plus percent margins drive makers enjoyed before the slump are unlikely to return. Carboy said he expects average growth rates of 9.2% in revenues from the industry between now and 2002. CD-ROM drives sales are expected to peak in 1999 as DVD-ROM shipments rise and overtake them next year.
