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HDD Prices are Increasing Rapidly; 50% in One Week

By - Source: Golem.de | B 65 comments

The hard drive market is reacting to the heavy floods in Thailand.

Prices for hard drives have jumped by as much as 50 percent within one week, market research firm IHS said. About a quarter of all hard drives are manufactured in Thailand and it appears that all major vendors are affected in some way.

Western Digital previously said that it may see a revenue decline of about 60 percent in the current quarter and told German publication Golem.de that it will be able to produce only 22 to 26 million drives this quarter, instead of the planned 58 million units. A spokesperson said that WD "currently waits for the factories to dry" to be able to restart its manufacturing tools. What makes matters worse are the usually thin profit margins in the HDD industry, which means that manufacturers typically have only five to seven days of material supply.

A Seagate manager told CRN India that the company expects and "acute" shortage of drives and that the manufacturer expects prices to increase. However, there was no information how sharp this increase can be. Both WD and Seagate said that the floods in Thailand have created a problem for the industry that will take several quarters to resolve.

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Top Comments
  • 15 Hide
    ben850 , October 24, 2011 8:20 PM
    Luckily I buy HDD's once every few years and can afford to wait this one out.
  • 14 Hide
    xcomvic , October 24, 2011 8:07 PM
    Oh wells, just wait until they rebuild and restock, prices will fall again within a few weeks.
  • 13 Hide
    Camikazi , October 24, 2011 8:42 PM
    AbdullahGI noticed this on Newegg, though it wasn't all that high. I remember seeing a few $60 HDDs jump to $70 and all the way up to $100.

    Gotta love how the prices on HDDs already in stock and in their warehouse goes up when something happens somewhere else :p 
Other Comments
    Display all 65 comments.
  • 14 Hide
    xcomvic , October 24, 2011 8:07 PM
    Oh wells, just wait until they rebuild and restock, prices will fall again within a few weeks.
  • 10 Hide
    deathengine , October 24, 2011 8:12 PM
    Until then, the price gouging will continue!
  • 6 Hide
    AbdullahG , October 24, 2011 8:13 PM
    I noticed this on Newegg, though it wasn't all that high. I remember seeing a few $60 HDDs jump to $70 and all the way up to $100.
  • 8 Hide
    bobthemailman , October 24, 2011 8:13 PM
    I went on newegg this morning and noticed a 2tb went from 65 to 99 i was shocked. Oh well Just have to wait till the market chills again
  • 8 Hide
    Anonymous , October 24, 2011 8:17 PM
    Also an example of the hidden costs of outsourcing. Risk of supply disruptions are rarely factored in when a company makes the decision to outsource, but they can be very expensive, as they are in this case.
  • 15 Hide
    ben850 , October 24, 2011 8:20 PM
    Luckily I buy HDD's once every few years and can afford to wait this one out.
  • 5 Hide
    Anonymous , October 24, 2011 8:21 PM
    right about now would be a good time to move manufacturing back to the USofA for once
  • 0 Hide
    Branden , October 24, 2011 8:23 PM
    bought three hitachi 2TB drives from my fav parts shop couple months ago for $100/ea, now listing as $130.
  • 13 Hide
    JeanLuc , October 24, 2011 8:23 PM
    xcomvicOh wells, just wait until they rebuild and restock, prices will fall again within a few weeks.


    It's going to take more like 6 months to get back to normal.
  • -3 Hide
    littleleo , October 24, 2011 8:24 PM
    This is because of the worst flooding in Thailand in 50 years. 60% of all WD drives are made there. Seagate has factories there too but not as much of their production is based there. The biggest problem is a lot of the hard drive component manufacturers are their too. These are the ones the make the drive motors the the other parts that go in to hard drives. It could be 6 months before production is back to normal. Right now its a sellers market, and there is no end in sight right now to the price increases and shortages. Thank god global warming doesn't exisit!
  • 1 Hide
    BlackHawk91 , October 24, 2011 8:35 PM
    Hopefully they will learn from this unfortunate natural disaster and be prepared for the next rainy season.
  • 9 Hide
    mavroxur , October 24, 2011 8:37 PM
    It's funny how there's not going to be a shortage in supplies, as manufacturers and vendors keep inventory on hand. And what incentive does anyone have for the manufacturing to resume quickly? Since there's now a "shortage", manufactuers can jack up their prices and make a killing. Now, resellers can jack their prices up even more, and who gets screwed? The consumer. They'll drag out production delays as long as possible until the cash cow is milked dry first.
  • 0 Hide
    amk-aka-Phantom , October 24, 2011 8:39 PM
    This is *just* great since I need to build two PCs for the office... guess they'll have to be delayed.
  • 13 Hide
    Camikazi , October 24, 2011 8:42 PM
    AbdullahGI noticed this on Newegg, though it wasn't all that high. I remember seeing a few $60 HDDs jump to $70 and all the way up to $100.

    Gotta love how the prices on HDDs already in stock and in their warehouse goes up when something happens somewhere else :p 
  • 3 Hide
    Anonymous , October 24, 2011 8:46 PM
    Buy an SSD. Prices are getting better and the performance is doubling. The overall value is there.
  • 0 Hide
    jlight27 , October 24, 2011 8:49 PM
    I wonder if we are going to have more problems like this. Most companies manufacturing is located in third world countries, and climate change is going to have a big impact on the world and really hard on these third world countries. Big business usually want to deny that climate change is real, but once it starts affecting their profit margins they're going to change their tune. Thailand is located at the coast and sea levels will continue to rise (only by a few inches, but that is enough). Hard Disk manufactures will have to face the hard choice of staying where they are and face more flooding on a regular basis (Cut into profits) or move to another location that doesn't cause as much investment problems. I'm sorry for the people of Thailand, but the cost analysis might come into favor the USA; by moving production back to the States
  • 2 Hide
    buzznut , October 24, 2011 8:54 PM
    josephjpetersBuy an SSD. Prices are getting better and the performance is doubling. The overall value is there.


    Well, mechanical drives are still better for capacity and data storage. Plus I can't build a budget machine for someone with an SSD. This is unfortunate, but I do agree that like others I can ride this out for now.
  • 2 Hide
    joebob2000 , October 24, 2011 8:55 PM
    xcomvicOh wells, just wait until they rebuild and restock, prices will fall again within a few weeks.


    A few weeks? Anyone who understands how industry works in this part of the world is laughing quite uncontrollably. A few weeks from now (after any inventory in the pipe from these plants is completely gone) they will be several MONTHS away from seeing the pipeline full of inventory again. The shortage and high prices, unless demand slumps due to protracted economic issues, will last for at least 6 months, if not a year.
  • 5 Hide
    RipperjackAU , October 24, 2011 8:56 PM
    CamikaziGotta love how the prices on HDDs already in stock and in their warehouse goes up when something happens somewhere else


    What I find disgusting is the time it takes for prices to change. Once something triggers the price hike, online stores skyrocket their prices over night. Then, when things rectify themselves, it takes months for the prices to eventually trickle back down to the pre-event prices.

    And yes, most of the stock that is inflated is already in the warehouse, immune to whatever raised prices, so why so quick to raise them? Price gouging, since retailers can get away with it, and blame current events?
  • 6 Hide
    11796pcs , October 24, 2011 9:00 PM
    MAKEitHEREinUSAforONCE_54621right about now would be a good time to move manufacturing back to the USofA for once

    greggreggregAlso an example of the hidden costs of outsourcing. Risk of supply disruptions are rarely factored in when a company makes the decision to outsource, but they can be very expensive, as they are in this case.

    Hey I'm all for American jobs but national disasters happen in the USA too. The only difference between the two coutries is that it probably takes a little longer to rebuild in these third world countries.
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