DVR Shipments Set to Drop for Lack of Hard Drives

According to IMS Research, speculation about the fate of hard disk drives (HDDs) in the wake of late-2011 floods in Thailand and recent data from major set-top box (STB) vendors are resulting in new predictions about DVR demand in 2012.

Last Friday, Technicolor, one of the world's largest STB manufacturers, indicated in its financial reporting that reduced DVR shipments cut deeply into the company's 2011 revenues. Pace, the world's largest set-top box manufacturer, has reshuffled top management and issued profit warnings in response to HDD supply contractions.

Recent forecasts from IMS Research's "Online Set-top Box Database" anticipate a 2012 DVR volume drop of more than 20% as operators rely on existing inventories and delay new DVR orders.

Initial estimates of the 2011 Thai floods' impact on 2012 DVR shipments suggested that HDD shipments would not resume pre-flood volumes until at least 2013. Nearly five months after the Thai floods began, there has been speculation that 2012 shipments of HDDs, and DVRs by extension, will drop between 30% and 40% below 2011's already reduced volume.
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