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Hard Drive Pricewatch: Three Months Into the Thai Floods

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On February 7, 2012, 2:59 AM Breaking News

The hard disk drive supply chain was hit hard late last year when a series of floods struck Thailand. The Asian country accounts for about a quarter of the world's hard drive production, but thousands of factories had to close shop for weeks as facilities were under water, in what is considered the world's fourth costliest natural disaster according to World Bank estimates. That's on top of the human cost of over 800 lives.

Western Digital and Toshiba had factories in the flood zones whereas Seagate was mainly affected by the resulting supply constraints from business partners who were forced to halt production of related components. Among those was Nidec, which produces ~70% of the world's hard drive spindle motors.

All this resulted in hard drive prices shooting through the roof around the end of October as production became more expensive and limited. With the help of price tracking site Camelegg we've checked on a number of mobile and desktop HDDs to get a better overview of how the situation has developed in the last three months.

Read the complete article.

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User Comments: 36

Got something to say? Post a comment
  1. rpsgc,

    Can you help me understand where you see a better solution than a free market? It is certainly not perfect but in a market where you can buy a 3TB disk for $169US that is pretty efficient. Do you envision some type of world government that can oversee supply and demand? Just how would that work and do you think it would ultimately provide better goods and services at competitive prices? North Korea and the old Soviet Union gave it a heck of a try - but they did come a lot closer to equity for everyone - everyone was poor and couldn't even imagine owning a 3TB disk. I guess a reference to GM and Wall Street in the U.S. would be warranted. However, if government didn't prop up poorly run companies or incent the transfer of risk to taxpayers the markets would have likely corrected the situations - albeit painfully. Again, how do you see government regulating this across global markets? Thanks.

  2. I'm doing my part to keep prices down by reducing demand.

    I'm not buying until prices come down.

    I've postponed buying computers and other gadgets that use hard drives.

    Yes, it hurts the economy but I am doing my part to keep HDD prices down.

  3. One thing the article doesn't address is that there have often been limits to how many hard drives a person can buy from different online and brick & mortar stores. Prices may actually be artificially depressed below what they naturally would be if a limit like this is used, so price alone isn't the whole story.

  4. The Tech Industry has obviously never heard the old, but wise advice - Never put all of your eggs in one basket.

    We humans sure are dumb for such smart people. We just keep repeating the same historical mistakes over and over. That and the opposable thumb are the two things separating us from animals, because the ability to reason sure isn't in the mix.

  5. Um... If not for free markets driving competition, we'd still be paying $5/MB of disk space.

    Although that competition is drying up as HD vendors buy each other.

  6. I can think of some places in the US NOT subject to floods, where access to major markets is excellent (good rail, road and air transport) AND where labor is cheap and land cheaper. Let WDC build a disk drive factory in one of these places. Mind you, no slave labor available like in China, but plenty of government incentives and much lower risk. And maybe if some components start getting made in the US, then maybe more computers will be assembled here.

  7. Stop. You're making too much sense.

  8. What ever happened to Moore's Law?!? Proof that we are being taken for a ride......

  9. If you don't like the price of HDD's, don't buy. When demand shifts, so will the corresponding price on the the supply-demand curve intersection. One advantage I foresee is downward price pressure between competitors for a substitute product: SSDs.

    HDD manufacturers produce devices with greater densities, faster speed, and more power efficiency to differentiate and maximize profits. This does not happen for free. Let's face it, HDD's were a bargain; now they are simply priced based on supply. Yes, manufacturers will enjoy increased profits, but prices will eventually settle.

  10. Production was back to normal -- 100% -- in Thailand BEFORE Christmas 2011.

    The fact that these high prices are continuing is a SHAM; obvious price gouging on the part of the HDD industry. Buffoons who spout out the usual "supply and demand" drivel as reasons for the high prices must love getting buttreamed. Nothing to do with that. It's plain and simple greed. Another shinging example of unfettered capitalism.

    I've bought FOUR SSDs in the meantime. I'll be speaking with my wallet.

    When 2TB externals go down to no more than $70, then I'll know these companies are serious about wanting to compete again.

  11. It's no different than the oil prices. Those never quite came back down to where they should have, either, and no one did a damn thing about it. We just complain on forums, and pretend to be activists.

    We are headed for a fall. All great empires eventually do.

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