Average Chinese Consumer Stores Nearly RMB5,000 Worth of Digital Content

07-16-2008, HONG KONG - The volume and value of digital content usage has increased rapidly among consumers in China. According to a research study announced today by Hitachi Global Storage Technologies (Hitachi GST) and KRC Research, the average Chinese consumer has RMB4,722¹ worth of digital media stored on electronic devices, as a result of the growing digital entertainment trend and the explosive growth of rich media content.

This study provides a snapshot into the digital storage needs, behaviors and attitudes of Chinese consumers. It indicates that we have now entered what Hitachi calls the “Tera Era,” where the amount of digital information being created, accessed, shared and stored around the world continues to grow at an uninterrupted, unrelenting pace.

“The intersection of three dynamic elements -- capacity, content and culture -- has resulted in explosive growth in the amounts and types of information people are now storing,” said Robert Chu, vice president, Asia Pacific, Hitachi Global Storage Technologies. “In the Tera Era, megabytes are long forgotten. Gigabytes are replaced by terabytes as a way to address insatiable demand for more storage capacity.”

High Capacity and Value

The results show that two in 10 Chinese consumers are “high storage capacity” users. Eighteen percent possess 200 gigabytes (GB) or more of storage capacity, and 20 percent own 81 to 200GB of storage capacity.

At the same time, Chinese consumers highly value the digital media stored on their devices. More than 60 percent of those sampled attribute value to their digital media, of which 9 percent consider the contents as “priceless,” and 32 percent regard the contents as “valuable.”

“Hitachi believes the next 50 years of storage will be marked by widespread proliferation of hard drives into a multitude of electronic devices that we can’t even imagine yet,” said Mr. Chu.

Below are other key findings of the national telephone survey² of 1,040 adults aged 18 to 64 in China conducted during May 2008:

Digital Device Popularity

Nearly all surveyed Chinese have at least one electronic device that provides digital data storage:

• More than nine in 10 (93 percent) own some kind of device with digital storage
• Four in five own a desktop computer or PC (82 percent) or a cell phone with a camera (80 percent)
• Three in five (62 percent) own a digital camera
• Three in five (62 percent) own an MP3 player
• More than one-third own a laptop computer (38 percent) or digital video recorder (36 percent)

Capacity in High Demand

Despite such high usage, there continues to be steady demand for even more storage capacity:

• Nearly half (48 percent) of the subjects would like to have twice as much storage or more in order to save everything they would like to on their devices
• Of these, 14 percent would like twice as much storage, six percent would like three times as much, and 28 percent wish they had “so much storage that it was never an issue”

“Generation Y” (18 – 24 years) Driving the Trend

On average, Chinese consumers who own electronic devices have 1,311 songs, 3,083 photos, 24 movies and 22 games stored on their devices.

• Three in four (74 percent) consumers with digital devices have stored songs
  • “Generation Y” consumers store a lot more songs than other adults, an average of 3,195
• As with songs, three in four (74 percent) Chinese consumers with digital devices have stored photos
  • “Generation Y” consumers store the most digital photos, an average of 7,571
• Half (51 percent) of Chinese consumers report storing a movie on an electronic device
  • Adults aged 25 to 34 store the highest average number of movies, 40
• More than six in 10 (62 percent) Chinese consumers store video games on their devices
  • Adults aged 25 to 34 store the highest average number of games, 36
  • Men store more games than women, an average of 32 games versus 12 games

A Hitachi white paper and more details about the Tera Era can be found at www.hitachigst.com/TeraEra.

 

About Hitachi Global Storage Technologies

Hitachi Global Storage Technologies develops advanced hard disk drives to store and preserve the world’s valued data. Founded by the pioneers of hard drives, Hitachi GST enables users to fully engage in the digital lifestyle by providing high-value, high-capacity storage in formats suitable for the office, in the home or on the road. With vertically integrated research, design and manufacturing capabilities, Hitachi GST delivers leadership technology and quality to its global customer base.

With approximately 33,000 employees worldwide, Hitachi GST offers a comprehensive range of hard drive products for desktop computers, high-performance storage systems and servers, notebooks and consumer devices. For more information, please visit the company’s website at www.hitachigst.com.

About Hitachi, Ltd.

Hitachi, Ltd., (NYSE: HIT/TSE: 6501), headquartered in Tokyo, Japan, is a leading global electronics company with approximately 384,000 employees worldwide. Fiscal 2006 (ended March 31, 2007) consolidated revenues totaled 10,247 billion yen ($86.8 billion). The company offers a wide range of systems, products and services in market sectors including information systems, electronic devices, power and industrial systems, consumer products, materials and financial services. For more information on Hitachi, please visit the company's website at http://www.hitachi.com

Hitachi Global Storage Technologies' trademarks are authorized for use in countries and jurisdictions in which Hitachi Global Storage Technologies has the right to use, market and advertise the brands. The Travelstar trademark is authorized for use in the Americas, EMEA, and the following Asia-Pacific countries and jurisdictions: Australia, Hong Kong, Japan, New Zealand, South Korea and Taiwan. Hitachi Global Storage Technologies shall not be liable to third parties for unauthorized use of its trademarks.

¹Based on the average price of digital songs, printed photos, movie DVDs and PC video games from popular retailers

²The estimated margin of error for this study is ±3.0 percentage points at the 95% confidence level. Please note that in looking at the numbers, the results themselves are weighted to match the general population, although the provided sample sizes are unweighted

Contact:

 

U.S.A:	Hong Kong:
Jim Pascoe Hitachi Global Storage Technologies +1 408.717.7924 This e-mail address is being protected from spambots. You need JavaScript enabled to view it	Elizabeth Warr/ Wendy Kam Weber Shandwick Worldwide +852-2533-9913  / 2533-9928 This e-mail address is being protected from spambots. You need JavaScript enabled to view it / This e-mail address is being protected from spambots. You need JavaScript enabled to view it