HDD Prices are Increasing Rapidly; 50% in One Week

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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  • xcomvic
    Oh wells, just wait until they rebuild and restock, prices will fall again within a few weeks.
  • deathengine
    Until then, the price gouging will continue!
  • AbdullahG
    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.