Hitachi, Fujitsu to exit small iPod-sized hard drive business

“Hitachi Ltd, Japan’s biggest electronics conglomerate, plans to exit the business of making small hard disk drives as demand shifts to flash memory chips, the Nikkei business daily reported on Sunday,” Reuters reports.

“Hitachi’s hard drive unit, Hitachi Global Storage Technologies Inc, has already stopped production of 1-inch hard drives and plans to stop shipping 1.8-inch drives around next summer, the newspaper said,” Reuters reports.

“The Nikkei also said Hitachi rival Fujitsu Ltd. has given up on plans to enter the market for small drives. Fujitsu had been developing 1.8-inch drives with U.S.-based Cornice with plans to bring a product to market in 2007,” Reuters reports.

“Small hard drives are increasingly being replaced by flash memory chips as the memory storage device in video cameras and portable music players, such as Apple Inc’s popular iPod, as flash memory capacity improves and prices come down,” Reuters reports.

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