Apple strength in the MP3 market will alter the course of the HDD market for 2005 and 2006, The Information Network says. Apple had a 20% share of the MP3 market and a 59% share of the HDD-based MP3 market in 2004. Unit shipments of 1-inch HDDs initially forecast to increase from 8.7 mln units in 2004 to 23.2 mln in 2005, will now increase to only 20.2 mln units in 2005. Shipments of 1-inch HDDs, initially forecast to increase to 37.0 mln units in 2006 will drop slightly to 19.8 mln units.
Apple's share of the MP3 market will reach 41% in 2006, and that the 1-inch HDD-based iPod Mini represented 52% of total iPod shipments in 2004. Removing the iPod Mini from the market and substituting it with a flash-based iPod Nano effectively will eliminate 17.2 mln 1-inch HDD drives from the market in 2006.