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Nvidia & AMD Say HDD Shortage is Impacting GPU Sales

By - Source: The Verge | B 48 comments

Hardware manufacturers continue to feel the effects of the 2011 Thai floods.

In the summer of last year, Thailand was hit with some disastrous flooding that continues to affect HDD companies and and the supply of hard drives. It's not unusual to hear HDD companies and tech analysts talk about the flooding and how it is affecting the industry. However, joining the refrain are companies with no stake in the HDD industry. They say that the shortage of hard drives has impacted PC shipments and, as such, had an effect on their businesses.

The Verge reports that both AMD and Nvidia have said the shortage of HDDs resulting from the flooding has had an impact on sales. Though neither expected to see any impact from the 2011 floods, recent earnings calls have revealed that they are feeling a squeeze due to the hard drive shortage.

Nvidia yesterday told investors it earned approximately $116 million less revenue than it had anticipated and is putting at least some of the blame on the hard drive shortage. Meanwhile, AMD also told investors that it was seeing "a little bit of pressure" thanks to the shortage.

Though neither are in the hard drive business, they say the decline in computer shipments has affected graphics processor sales because fewer computers shipped means less demand for components.

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  • 22 Hide
    Inferno1217 , January 25, 2012 3:18 PM
    The perfect time for SSD manufacturers to lower prices, capitalize and take a huge market and yet another missed opportunity.
  • 19 Hide
    Lord Captivus , January 25, 2012 3:22 PM
    You don’t have to be a finance genius to see that there’s a relation between the HDD and GPU markets. Probably monitor companies have the same problems...
  • 18 Hide
    tmk221 , January 25, 2012 3:32 PM
    in other news AMD said that HDD shortage won't impact their CPUs sale.....

Other Comments
  • 22 Hide
    Inferno1217 , January 25, 2012 3:18 PM
    The perfect time for SSD manufacturers to lower prices, capitalize and take a huge market and yet another missed opportunity.
  • 19 Hide
    Lord Captivus , January 25, 2012 3:22 PM
    You don’t have to be a finance genius to see that there’s a relation between the HDD and GPU markets. Probably monitor companies have the same problems...
  • 11 Hide
    thor220 , January 25, 2012 3:22 PM
    Inferno1217The perfect time for SSD manufacturers to lower prices, capitalize and take a huge market and yet another missed opportunity.


    Totally agree with this. If one manufacturer were to lower prices would could have seen a huge sift from HDD to SSD.
  • 0 Hide
    c_herring , January 25, 2012 3:30 PM
    lord captivusYou don’t have to be a finance genius to see that there’s a relation between the HDD and GPU markets. Probably monitor companies have the same problems...
    I'm not quite as sure about that one. Not everyone gets a new monitor with every new PC. But every worthwhile laptop has an NVidia or AMD IGP, and whether a desktop has a discrete card or an IGP there's a good chance that it, too, has an NVidia or AMD chip in it somewhere.

    I wonder how memory's doing? In theory the OEMs could still order less memory and use their overstock to fill more slots in the machines they make/sell, perhaps charging slight premiums for making 6GB and 8GB more common.
  • 18 Hide
    tmk221 , January 25, 2012 3:32 PM
    in other news AMD said that HDD shortage won't impact their CPUs sale.....

  • 3 Hide
    shin0bi272 , January 25, 2012 3:36 PM
    Maybe nvidia shouldnt say "be patient" when asked about their new GPU then huh? Not that that's what this article was about but it still irks me when the rumor mill says their new card will be out in 2-3 months and we havent heard anything concrete about it! Everyone expects to see their new card at CES and they talk about tablets. Then when pressed about the new geforce card they blow the question off. Then a couple of weeks later they come out and whine about low sales of their lower end/mobile chips because theres a shortage of drives. boohoo. I dont wanna hear your complaining when its gamers that put you where you are now and you dont care to even tell us about your new card.
  • 0 Hide
    de5_Roy , January 25, 2012 3:45 PM
    any info on how many bulldozer cpus (zambezi, valencia, interlagos) sold? llano and brazos seem to carry the cpu revenue.
  • 1 Hide
    theuniquegamer , January 25, 2012 3:45 PM
    That hdd shortage is making a good impact on ssd sales too. The people who were buying the performance level hdd(on or above 10k rpm) are now buying the ssd product. But the entry level pc users are being punished by such high price of hdd ( as much as double the price than before in some cases). The hdd companies are trying to sell & clear their old stockpile of 500gb, 320gb or lower hdd products in this time to entry level users.
  • 3 Hide
    rosen380 , January 25, 2012 4:05 PM
    I'd imagine that SSDs were already selling on lower margins just to try and stay moderately competitive with HDD pricing-- and if that is the case, then they might not have a lot of room to go down until improvements in technology reduce costs.

  • 10 Hide
    Cryosis00 , January 25, 2012 4:26 PM
    Nvidia is not talking about the consumer, you and me, when they mention HDD shortage affecting their GPU sales.

    They are talking about their commercial contracts where HP/Dell or anyone else who orders millions of dollars worth of product from Nvidia and AMD at a time for their computer and server line ups.

    Consumer sales are small potatoes in the over all outlook.
  • -5 Hide
    daggnar , January 25, 2012 4:35 PM
    Excuse me, but what is the relation between those two markets ? Isn't the lack of progress in the GPU domain that causes this ?
  • 0 Hide
    alidan , January 25, 2012 4:37 PM
    Inferno1217The perfect time for SSD manufacturers to lower prices, capitalize and take a huge market and yet another missed opportunity.


    i say this all the time THEY CANT, physical limits dont allow them to sell ssds at lower prices, go over to the intel article about the 14nm fab they are building, i did some math on what ssds will cost with that process and with the larger wafer size.

    again if i knew how big the die size of a ssd chip was, i could do math based on that, but till than, i can only do math based on price.

    lord captivusYou don’t have to be a finance genius to see that there’s a relation between the HDD and GPU markets. Probably monitor companies have the same problems...


    no, i dont see the coloration, mainly because most pre built computers have integrated, and i cant see intergrated pulling in more than 116 million dollars in loss. are gpus used in servers normally? if so i can see it now.
  • 1 Hide
    alidan , January 25, 2012 4:40 PM
    theuniquegamerThat hdd shortage is making a good impact on ssd sales too. The people who were buying the performance level hdd(on or above 10k rpm) are now buying the ssd product. But the entry level pc users are being punished by such high price of hdd ( as much as double the price than before in some cases). The hdd companies are trying to sell & clear their old stockpile of 500gb, 320gb or lower hdd products in this time to entry level users.


    and to get a decent warrenty you have to buy an enterprise drive, and those things are 450$ minimum for i think 2tb, what were they before flood?
  • -4 Hide
    drwho1 , January 25, 2012 4:53 PM
    This must has been written by some cowboy... because this is total Bull....

    1) There is never been any real HDD shortage, the HDD prices were hijacked even when they were safely
    dry, right here in the US. They didn't even got wet, yet the prices skyrocketed.

    2) Even if "new PC's" was even an excuse, Neither AMD or Nvidia sell high end graphic cards for pre-built PC's. Their real market is the "enthusiast market" which upgrades (or build) their system(s).

    This people (myself included) have a lot of hard drives already or have moved to SSD's. (or both)

    This is just a scheme to hijacked their prices, hope that people don't fall for it.
  • 1 Hide
    leon2006 , January 25, 2012 4:56 PM
    People purchase more tablets last quarter than pc
  • 1 Hide
    noblerabbit , January 25, 2012 5:00 PM
    The outsourcers, and asian distributers, have singlehandedly, destroyed the HDD, and component business since the floods.
  • 3 Hide
    dontcrosthestreams , January 25, 2012 5:02 PM
    i think its price gouging at this time....one parking lot to a warehouse was flooded along with roads....so 4000 oem units lost....im writing my congressman and asking them to do the math. why would a 500gb 7200 rpm drive double in price and stay there for 5 months when one factory in one county was damaged. crimes are being commited. and why had SSDs gone up in price?
  • 6 Hide
    sunflier , January 25, 2012 5:16 PM
    As a PC gamer the only thing impacting me from upgrading to a new high-end video card is high prices.
  • 2 Hide
    rooket , January 25, 2012 5:17 PM
    Good thing I bought drives before all this happened. Two 2TB Hitachi drives for $60/ea after rebate and made good use of them with space to spare. Also they are external so they aren't being wasted spinning constantly while doing other things on the PC.


    Quote:
    Hardware manufacturers continue to feel the effects of the 2011 Thai floods.

    Nvidia & AMD Say HDD Shortage is Impacting GPU Sales : Read more


    As good of an idea as this may sound on paper, I don't see that it is currently feasable otherwise it would already happen. The reason being is that people have known well for years that NAND flash is expensive and the hard drive industry is completely separate from the microchip industry. They are two different things entirely. One does not depend on the other. So yeah I "wish" that I could get a 1TB NAND based solution for 50 bucks but will it happen? that depends on the manufacturing process costs, not how much a hard disk costs or if hard drive companies are having a difficult time meeting demand. Demand can stay high or low on NAND but it isn't going to change the fact that it is expensive to manufacture opposed to a perfectly working hard drive foundry.

    There are people who speculate that prices may drop on SSD by the middle of this year, but it is speculation until it does or doesn't happen. I hope that it falls but I'm not holding my breath.

    As far as on topic of GPU prices, if those fall then that is fine because I was thinking about getting a 600 series nvidia card anyway (although I really don't need one, which is one key thing too a lot of people already have video cards that run everything well and really don't have a reason to spend more money on a new one) I sold my 9800 gtx+ and bought a 260 core 216 but I didn't really need to do that so that kinda taught me that even thoguh you might want to get 60fps in a certain game, spending money on it is worthwhile if you are actually going to play the game for more than an hour or two which I pretty much didn't.

    Anyway I think I've been in the gaming hobby too long so although I can run out and buy new parts if I want to, it isn't really that big of a need. I guess these price concerns are more for high school kids that don't have much money anyway.
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