Hitachi has indicated that it is preparing to phase out production of small sized hard drives, highlighting increasing competition from flash-based products as the key driver for its move.
"We are not trying to recruit new customers for our small drives any more … and as long as we don’t win new customers, the size of the business is set to dwindle," a Hitachi spokesman said.
The news comes just days after Japanese-rival Fujitsu said that it had shelved plans to develop a 1.8-inch drive, stating that the growing presence of NAND-based products in the market had made traditional drives uneconomical.