Sign in with
Sign up | Sign in

HDDs Return to Pre-Flood Prices

By - Source: Extreme Tech | B 22 comments

If you put off your upgrade plans following the 2011 Thailand Floods, now is a great time to consider expanding your computer or network's storage capabilities.

In addition to killing well over 200 people and displacing millions in the region, the July 2011 floods in Thailand provided some rather dramatic shocks to the storage market with the subsequent drop of production capacity causing delays in shipments, price increases and not coincidentally, strong profits for hard drive manufacturers.

New information from Dynamite Data’s Kris Kubicki and Extreme Tech has revealed some rather promising developments and revealed three distinct trends. Firstly, mechanical hard drive’s dollar per gigabyte prices have returned to pre-flood levels, and secondly, that solid state drive dollar per gigabyte prices are remaining stable and thirdly that SSD storage density has significantly increased.

Before we begin, it is important to note that the data provided is averages from Dynamite Data's database that have been weighted by popularity and thus should provide a more accurate representation of the industry as a whole than using comparing a small basket of products.

1. Mechanical Hard Drive Prices


The floods in July 2011 caused HDD prices to increase 72.7% from $0.055 per GB to $0.095 per GB and as indicated in the above chart, the market has since corrected for this spike by steadily reducing prices back to pre-flood levels. Since prices seem to have reached their current market equilibrium, we don’t expect to see any further price reductions in the near future unless we see the introduction of intervening technologies such as Western Digital’s Helium Hard Drives.

The data also indicates that we cannot reasonably accuse storage manufacturers of price gouging consumers in the aftermath of the flood (retailers and OEMs are a different matter entirely). Rather, it seems that the strong profits registered by manufacturers can instead be attributed to the retiring of less profitable product lines and shift towards drives with smaller, higher density storage platters.

Discuss
Ask a Category Expert

Create a new thread in the News comments forum about this subject

Example: Notebook, Android, SSD hard drive

This thread is closed for comments
Top Comments
  • 10 Hide
    yapchagi , April 22, 2013 9:52 AM
    nahh it's still not back to pre-flood price. Caviar Black 2 TB is still $160 from amazon. I bought it for $130 last time from amazon.
Other Comments
  • 5 Hide
    digiex , April 22, 2013 8:05 AM
    Well... It's close.
  • 0 Hide
    warezme , April 22, 2013 8:24 AM
    In the words Endarie of Radiant Rainment, "Finally"
  • Display all 22 comments.
  • 2 Hide
    Onus , April 22, 2013 8:32 AM
    Profits of manufacturers probably also increased because they chopped their warranty lengths, some to as little as one year (Samsung); two years is typical now. Only the WD Black drives still have five year warranties.
  • 0 Hide
    eklipz330 , April 22, 2013 8:56 AM
    i wonder if another price hike for hdd's will cause the ssd prices to tumble... probably if we're following the standard supply and demand curve
  • -1 Hide
    Pherule , April 22, 2013 9:51 AM
    Quote:
    Profits of manufacturers probably also increased because they chopped their warranty lengths, some to as little as one year (Samsung); two years is typical now. Only the WD Black drives still have five year warranties.


    OCZ have 5 year warranties.
  • 10 Hide
    yapchagi , April 22, 2013 9:52 AM
    nahh it's still not back to pre-flood price. Caviar Black 2 TB is still $160 from amazon. I bought it for $130 last time from amazon.
  • -1 Hide
    Thomas Hock , April 22, 2013 10:47 AM
    Mushkin Chronos pricing is to SSD as Gskill is to Ram. 240GB gaming SSDs for only $179.99 is such a steal. Hard drives are nearly mapped to my Personal files and backups now these days. Data recovery on a SSD when it fails compared to a HD thats failling is entirely different story. If you SSD stops working you data is GONE! if the hard drive fails there's a lot of easy means of recovering data bit by bit. So as we make a move to SSDs please, please, please backup your data people!
  • 8 Hide
    Soda-88 , April 22, 2013 10:56 AM
    Quote:
    Quote:
    Profits of manufacturers probably also increased because they chopped their warranty lengths, some to as little as one year (Samsung); two years is typical now. Only the WD Black drives still have five year warranties.


    OCZ have 5 year warranties.


    OCZ doesn't make HDDs.
  • 6 Hide
    whooleo , April 22, 2013 10:59 AM
    Last time I checked (this morning) prices are still above pre-flood levels.

    Example: Seagate Barracuda 250GB SATA $35 before floods, $60 right now...
  • 1 Hide
    noblerabbit , April 22, 2013 11:39 AM
    4TB Seagates, around $140 for your static data, Samsung SSD's for the OS boot. Done!
  • 1 Hide
    devBunny , April 22, 2013 12:34 PM
    "HDDs Return to Pre-Flood Prices"

    I'll believe that when I see it myself, thanks. The pair of 2TB drives that I bought not that long before the flood (phew) are still about 40% more than I paid for them, £145 versus £105 (inc VAT).
  • 1 Hide
    RazberyBandit , April 22, 2013 12:44 PM
    Quote:
    OCZ have 5 year warranties.


    OCZ doesn't make Hard Disk Drives, it makes SSDs. Onus was speaking about the warranty periods for Hard Disk Drives, and is correct in his statement that warranty periods have been shortened.

    I don't feel HDD prices are at pre-flood pricing just yet. I can recall purchasing a 1TB Samsung Spinpoint F3 from Newegg for $50 (on sale) just months before the flooding. Currently, the cheapest 1TB HDD on Newegg is $70, while the rest are $75 or more.
  • 0 Hide
    ipwn3r456 , April 22, 2013 7:07 PM
    5 cents per GB? Still too expensive xD Can't imagine years later with 10TB HDDs being available with 1 cent per GB.
  • 1 Hide
    maigo , April 23, 2013 1:16 AM
    It's been 2 years already!?!
  • -1 Hide
    murzar , April 23, 2013 1:31 AM
    Nope they haven't.
  • -1 Hide
    flank2 , April 23, 2013 3:51 AM
    no, no they're not. when hdd's go on sale, the sale price is VERY close to what the pre-flood prices were. I remember buying 2TB samsung's for $55-60 from tigerdirect not on sale. I go on newegg and the cheapest 2TB is $97...
  • -1 Hide
    somebodyspecial , April 23, 2013 7:38 AM
    Look at both Seagate/WD profits pre-flood and after. This was almost complete BS as they recovered far faster than they'd like you to believe and seagate wasn't really affected much at all. Look at unit shipments also which are up for both. Seagate Quadrupled (a little over actually) profits shortly after the flood.

    Not sure where this charts prices come from, but I still can't get a 1 or 2TB drive as cheap as pre-flood. They have another $10-20 to go. WD's 1TB at newegg is $75. I got my last 2 1TB drives for $55 & $59 before the flood and I think they went below that. The 2TB has another $20 to go also as they are still $99 or more and as a bonus for all their profits they killed out warranties. They have all shrunk and charge a premium to get them back. So they overcharge you for less warranty, and completely screw you for the same warranty you had before.

    Where are they getting the flood pricing data? IMHO it is wrong by a HUGE amount. $75 is a far cry from $55. $20 doesn't sound like much until you realize the % here. They keep pocketing HUGE quarters.
  • 0 Hide
    upfront , April 23, 2013 9:19 AM
    Recently I saw a 3TB on sale for 119 Dollars and free shipping. That's what I paid after a 10 dollar rebate for my Pre-Flood 3TB hard drive. Hard Drives seem to be at Pre-Flood prices if you wait for sales. I will still wait for a 4TB for under 140 Dollars before I upgrade our home server/HTPC. While this price hike was going on I upgrade all the computer in our home to SSD except our Home sever/HTPC. It's nice to see the lower prices.
  • 0 Hide
    earthwormsvx , April 23, 2013 10:12 AM
    2TB green drives were usually $70 in Canada pre-flood. Today, the cheapest is $95 which puts them about 35% higher than they used to be. Also consider that prices would have fallen since then so, in reality, we should be seeing 3TB drives for about $70 by now.
  • 0 Hide
    ven1ger , April 23, 2013 3:51 PM
    Quote:
    Last time I checked (this morning) prices are still above pre-flood levels.

    Example: Seagate Barracuda 250GB SATA $35 before floods, $60 right now...


    Other reason for a 250GB drive costing that much is probably because supplies on older equipment are typically not so much in demand and so they raise prices a bit. Newer equipment usually are in heavy demand, and hence the competition is somewhat fiercer affecting the pricing.



Display more comments