Several aspects of interest in this BBC story.
The perpendicular disk storage format mentioned earlier.
It’s not all about storage capacity – but if people want media (beyond simple text) content then quantity inevitably grows in consumer electronics – iPod shows that user interfaces can be created to make it usable.
Ruggedised drives for cars – extremes of temperature, physical vibration and knocks are also growing. Interestingly as Cringley predicted some time ago in 2002, cars are going to become the main focus of comms expansion.