Saturday, December 10th 2011
HDD Shortage To Go On And On And On
The recent Thailand floods appear to be taking a bigger toll than expected, with the effects of the shortages to be felt all the way into 2013, according to market research firm IDC. This isn't helped by the fact that the largest manufacturer of HDDs, Western Digital, was hit the hardest. As the situation is so volatile, companies such as HP, Dell & Lenovo are keeping watch on the market daily and are even sometimes having to accept drives of a lower spec if they are to ship some systems at all. As expected, the retail purchaser of hard disk drives comes bottom of the allocation list. IDCs John Rydning said in a statement: "I think the most painful period will occur now through February of next year. We expect the situation will improve, but it won't feel as if things are back to normal until 2013". There's more detail and analysis over at Network World.
32 Comments on HDD Shortage To Go On And On And On
I think WD is just bullshitting at this point to try and keep prices higher.
The fluctuation of prices for a computer component is a petty issue when in comparison to why the price have sky rocketed (the flood). I'm more worried about how the humans are dealing with everything as opposed to how fast my computer components can come down in price.
I'll stick with 1 terabyte for a year more >:)
www.youtube.com/watch?v=9JyN6Obi7eI
And as I read this: It could really happen if milk became that viral!?
WD has factories other than Thailand, so those factories are not good enough to increase production or what? What about the recent Hitachi purchase? They are still producing drives right?
I think this is all a stunt.
HOWEVER, look at it from the eyes of Seagate. They don't have to up production by adding another shift, hire more workers, or change a damn thing, all they have to do is up prices.
Which sounds easier?
Seagate went along with this and said, oh we will just charge more and make a 100% higher profit.
This situation is a classic case of taking advantage of the need in the market, and PRICE FIXING.
Prove me wrong.
And really, I think everyone involved with the HDD business was getting sick of the rock bottom prices on hard drive. Just like memory manufacturers are getting sick of the rock bottom memory prices(some to the point of abandoning selling memory because it was no longer profitable). That is why pretty much every "smaller" HDD manufacturer has sold off their HDD decision to either Seagate or WD. The rock bottom prices made manufacturing and selling HDDs in anything less than super extreme quantities not profitable, and Seagate and WD are the only ones that could do that.
It is the Distributors/Suppliers who adjust price due to the lack of inventory surplus. it is the Distributors who alter the price more even when they have ample surplus already.
Its the Suppliers! ! ! ! R0aR!
I'm sure everyone is upping their cut and the effect snowballs. But the main point I was trying to make was that the actual manufacturers aren't totally to blame for the price hike, everyone is taking advantage.
We had a petrol company open up and petrol prices dropped.
Didn't have to think about petrol costs when going for a road trip.
Then all of a sudden the oil thing happened and petrol priced stayed high.