Saturday, November 5th 2011

Thailand Floods: HDD Prices To Remain Extortionately High As Supplies Get Tighter

The recent dreadful flooding in Thailand has forced the closure of several hard drive factories. The immediate concerns of course, are for the health and wellbeing of the people living and working in the area. The wider concern is the severe restriction in hard drive manufacturing capacity. Already, prices have doubled or tripled, depending on the exact model affected. The biggest HD manufacturer, Western Digital, has been hit the hardest, as IDC predicts that up to 75% of its production will be shut down. This means, that the big corporate HDD customers, those like HP and Dell, who build computer systems in large volumes, will get whatever inventory is available to fully satisfy their needs. Whatever is left is then sold on to the retail channel, for ordinary consumers to buy. IDC believes that hard disk production will reach pre-flood levels by around March, but that HDD levels by then will be very low. The prices should go through the roof then, in the meantime. As expected, this will also increase the prices of complete systems, as such a price hike is too much to absorb fully.Source: Network World
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94 Comments on Thailand Floods: HDD Prices To Remain Extortionately High As Supplies Get Tighter

#1
Jarman
whatever they are, they are beyond what I am willing to pay
Posted on Reply
#2
Easy Rhino
Linux Advocate
by: Jarman
whatever they are, they are beyond what I am willing to pay
you and just about everyone else. disasters like this really hurt companies (even those that can recoup some of the loss through insurance policies.) hopefully we will see companies rethink their strategy and start opening HDD plants in other areas of the world.
Posted on Reply
#3
digibucc
i didn't think extortionately was a word - that's what i took from this article ;)
Posted on Reply
#4
qubit
Overclocked quantum bit
by: Easy Rhino
the article itself is pretty good, i just take issue with the title as it is misleading. qubit you have to understand people will react negatively to you injecting your bias into a news article. people want facts so they can make up their own mind.

i dont think these prices are extortionately high so i don't believe you should have used that word. i believe the prices are actually an accurate reflection of market price after a major disaster. a good title would have been "HDD prices to remain high as supplies tighten."
Thanks, I'm glad I got something right. :)

Yes, your title works, it's accurate and it's fine, but it's bland and I don't do bland. I think extortionately does apply to this, so it all just boils down to... opinion. Again, lol. It gets across the "WTF!!" factor any poor buyer in the market for a hard drive right now feels. I think this is just splitting hairs now, seriously. Hard drives are very expensive right now, regardless of the exact words one uses.

Can we call a truce now please?!
Posted on Reply
#5
n-ster
by: Easy Rhino
whatever. i just have different expectations for news i guess. but i won't stop bringing up my issues with his news in his news thread. if i read something i know to be incorrect im going to call him out on it. otherwise he will never learn to tone down the rhetoric and write professionally.
I don't mind you calling him out, I mind you calling him out HERE... qubit said it again and I'll say in another time, this is not the place for these comments. Why? It derails the thread and it craps the thread (and by that I do not mean you posts are crap, I mean that the thread is derailed and gone in a completely different direction). TBH I see your point. I like qubit's style but not everyone does, but people mistakenly think the qubit doesn't know this. HE KNOWS. There are many places where you can call him out, including PMs, "what's wrong with our forum" and "Our News, your views" threads.

This is why mods usually try to stop the MAC vs PC and INTEL vs AMD comments as they derail threads. The qubit vs not qubit style is what happened here. I mean look at the thread! You can't in all honesty tell me this "calling out" didn't derail the thread

by: Easy Rhino
the article itself is pretty good, i just take issue with the title as it is misleading. qubit you have to understand people will react negatively to you injecting your bias into a news article. people want facts so they can make up their own mind.

i dont think these prices are extortionately high so i don't believe you should have used that word. i believe the prices are actually an accurate reflection of market price after a major disaster. a good title would have been "HDD prices to remain high as supplies tighten."
Isn't high technically an opinion too? You could see HDD prices being a steal, and now they are less cheap or normal. Yes the prices are higher, but not necessarily high. I admit the word "remain" neutralizes this point somewhat. Just trying to point out there can be "opinion" in many news titles that you might find appropriate.

Again though, the "extortionately" can mean with extortion, but it can also mean that it exceeds the customary, and the later is true and perhaps the best neutral way of saying it.
Posted on Reply
#6
erocker
by: n-ster
I don't mind you calling him out, I mind you calling him out HERE... qubit said it again and I'
ll say in another time, this is not the place for these comments. Why? It derails the thread and it craps the thread (and by that I do not mean you posts are crap, I mean that the thread is derailed and gone in a completely different direction). TBH I see your point. I like qubit's style but not everyone does, but people mistakenly think the qubit doesn't know this. HE KNOWS. There are many places where you can call him out, including PMs, "what's wrong with our forum" and "Our News, your views" threads.

This is why mods usually try to stop the MAC vs PC and INTEL vs AMD comments as they derail threads. The qubit vs not qubit style is what happened here. I mean look at the thread! You can't in all honesty tell me this "calling out" didn't derail the thread



Isn't high technically an opinion too? You could see HDD prices being a steal, and now they are less cheap or normal. Yes the prices are higher, but not necessarily high. I admit the word "remain" neutralizes this point somewhat. Just trying to point out there can be "opinion" in many news titles that you might find appropriate.

Again though, the "extortionately" can mean with extortion, but it can also mean that it exceeds the customary, and the later is true and perhaps the best neutral way of saying it.
I think qubit can defend himself. Let's get back on topic now.
Posted on Reply
#7
Neuromancer
Back On topic, to both the article and the title.

Extortion is an apt description of the event. A high price is above market value, extortion is a forced and excessive payment, because no option is left for you. Since retailers unilaterally tripled cost, before shortage even occurred, this is price gouging, something that happens on new releases, and when shortages occur. It is not justified, and you know prices will fall to what they really should have been adjusted to based on the articles predicted 25% impact on supply. Fact is that these retailers did NOT pay the price they are charging at the minute, so yes.. not illegal just dubious as hell and should not be supported.

I will cinch my data belt and wait till prices fall back down to appropriate levels before I purchase a HDD for myself.

As to the title, despite its apropos connotations, when people use excessive adjectives in their assessments I tend to dismiss their opinions as juvenile. And that is what it sounds like a teenager writing a news article. (No offense qubit, I do not mean your wording I mean in generally, sensationalist words smack of youthful or ignorant writing.. ). similar consternations would be applied to those that think "Intel murders/rapes/slaughters AMD or crushes, demoralizes, or takes your mother out for a nice seafood dinner and never calls her again!" type of comments.

*free cookie for the first person to name the movie of that last part :)

(Sorry for the wordy post, I am in writing mode right now)
Posted on Reply
#8
n-ster
by: erocker
I think qubit can defend himself. Let's get back on topic now.
I know he can, but Easy Rhino was divulging his opinion, I was merely counting his opinions with mine
by: Neuromancer
Back On topic, to both the article and the title.

Extortion is an apt description of the event. A high price is above market value, extortion is a forced and excessive payment, because no option is left for you. Since retailers unilaterally tripled cost, before shortage even occurred, this is price gouging, something that happens on new releases, and when shortages occur. It is not justified, and you know prices will fall to what they really should have been adjusted to based on the articles predicted 25% impact on supply. Fact is that these retailers did NOT pay the price they are charging at the minute, so yes.. not illegal just dubious as hell and should not be supported.

I will cinch my data belt and wait till prices fall back down to appropriate levels before I purchase a HDD for myself.

As to the title, despite its apropos connotations, when people use excessive adjectives in their assessments I tend to dismiss their opinions as juvenile. And that is what it sounds like a teenager writing a news article. (No offense qubit, I do not mean your wording I mean in generally, sensationalist words smack of youthful or ignorant writing.. ). similar consternations would be applied to those that think "Intel murders/rapes/slaughters AMD or crushes, demoralizes, or takes your mother out for a nice seafood dinner and never calls her again!" type of comments.

*free cookie for the first person to name the movie of that last part :)

(Sorry for the wordy post, I am in writing mode right now)
Anchorman is the movie

now imana write my post but I wanted to be first lol

What the retailers did was not extortion IMO... It is as simple as supply and demand. If they had kept their prices low, they would have lost precious stock they have. They priced up HDDs to slow down the demand in order to keep enough stock for the months to come. If they didn't, we'd be out of HDDs during the Christmas shopping which is very bad :p

Extortionately =/= extortion btw

One of the definitions of extortionately is exceeding the customary. That is exactly what the prices of HDDs are right now, and it is the best way to describe it. Even "remain high" is less correct than "exceeds the customary". Using the turn of phrase would have made the title bland, hence the synonym
Posted on Reply
#9
Easy Rhino
Linux Advocate
i guess they don't teach economics in school anymore.

a disaster of this magnitude first effects the manufacturer. supply is now limited so the price naturally increases to retain some sort of revenue. the retailers then fight each other to acquire as much of the product as possible. this immediately shoots the retail price through the roof as a bidding war begins for the short supply. as a way to off set the long term costs retailers raise the price on their current stock so they have more cash to bid on the short supply. retailers know that some consumers will pay the higher costs because those consumers have a higher demand for the product while others will wait. retailers capitalize on their high demand customers who build a higher cost into their own products and services. this actually softens the blow as the total cost is now spread out to a wider group of people. as supply begins to come back the cost to retailers will decrease adding certainty in the marketplace. costs will then go down for consumers as prices reach an equilibrium for the greatest population of consumer demand.

tldr; it isn't extortion.
Posted on Reply
#10
qubit
Overclocked quantum bit
Nice bit of economics 101, Easy. :toast:

I couldn't explain it quite like that.
Posted on Reply
#11
Easy Rhino
Linux Advocate
as consumers we often focus on the retailers and say they are gouging us. remember though that retailers are consumers too! they are buying from the manufacturers and other retailers some times.

if prices on HDDs crash (much lower than they were before the disaster) when the disaster is all cleaned up and people are back to work then we will know the retailers overcharged for their limited stock to the consumer. this is bad for the retailers because they lose on the initial high cost after the disaster and they lose after the disaster because they can't charge enough for the HDDs. it behooves retailers to keep prices as low as they possibly can during a disaster to avoid that.
Posted on Reply
#12
n-ster
My simplistic mind did not think of the scenario as detailed as that lol. I didn't think of some of the factors you mentioned

My ECON 1000 class I'm taking didn't cover disasters yet lol, but I'm only 1/4 into the class (a full year class)

At least I came to the same conclusion LOL
Posted on Reply
#13
imitation
Well, for now prices are just insane (here in Germany). I bought a bunch of Seagate 500GB 3,5" drives for 28€ a piece half a year ago. Now, the cheapest drive available is a Samsung 1TB 2,5" for 80€, and the aforementioned Seagate is pinned at 135€. Until 500GB cost somewhere close to 30 or 40€ again, i'll refuse to call this "normal".
This is madness!!!
Posted on Reply
#14
fullhd99
WDC hdd prices rose very crazy
because the factory drowned due to flooding

in my country
before Internal 3,5" WDC Green 2TB SATA6 price $90:D
After flood disaster price $150 :banghead:

Bonus

[spoiler=]



[/spoiler]
Posted on Reply
#15
n-ster
by: fullhd99
WDC hdd prices rose very crazy
because the factory drowned due to flooding

in my country
before Internal 3,5" WDC Green 2TB SATA6 price $90:D
After flood disaster price $150 :banghead:

Bonus

[spoiler=]

http://www.enterkomputer.com/images/wdflood.jpg

[/spoiler]
That is less of a rise than most other countries, which saw 100+% price increase :p
Posted on Reply
#16
fullhd99
by: n-ster
That is less of a rise than most other countries, which saw 100+% price increase :p
only say Oh my good:respect:
in prediction hdd prices will continue to rise
many stores who have stock hdd in large quantities to take advantage of two and even three-fold,whereas at the time of purchasing stock from the manufacturer with the normal price
Posted on Reply
#17
Chappy
They should put their factories at the top of the world. :D

Posted on Reply
#19
Chappy
by: qubit
OMG he's not afraid of heights is he?! :eek: I'd turn to jelly up there.
I doubt you will, you won't be able to see the ground up there. Even people with Acrophobia won't trigger their fears as there will be no ground to fall to... :D
Just look into the clouds ;)

Anyway how funny it would look if they make a hdd factory up there. :laugh:
Posted on Reply
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