Economics are everywhere
If the missing storage hardware investment is going into solid state storage, this will bring forward the point at which the marginal cost of flash approaches that of the Winchester disk.
However, we know there isn't enough flash foundry capacity to cater for storage growth, even if total Winchester disk capacity continues to increase. This puts a brake on Winchester -> flash substitution.
If the marginal price of storage rises or stops dropping, there will be an incentive to raise investment. That investment is likely to go to solid state tech. But building a foundry is like building a ship or an office building - a colossal bet on future prices. The dynamics are exactly like those of shipping or commercial property, which lurch from periods of echoing overcapacity to periods of frantic building. Half the projects in those businesses go bust, and no-one knows which half until it's too late.
In semiconductors, the flat panel debacle still haunts manufacturers. Building flat panel factories to cater for seemingly insatiable demand turned former industrial giants into shells. LG, Samsung, Sharp and Sony were all humbled by flat screen bets. Between 2004 and 2010 the industry lost $13 billion, according to the Economist (2012). That is chicken feed in comparison to what awaits poorly judged solid state storage investments.
Will we have a Mexican stand-off of non-building? Or there will have to be consolidation or co-operation on semiconductor fab mega-projects that don't lead to overcapacity because they are cartels?
If manufacturers compete on megaprojects, some of them will be fatally injured, which leads to de facto concentration, and more manufacturer pricing power.
Long term price falls are still possible, with current dynamics, but not in the most likely scenarios.