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HDD Crisis Was Fake: Seagate and Western Digital Post Big Profits

Discussion in 'Storage' started by lyndonguitar, May 3, 2012.

  1. Frick

    Frick Fishfaced Nincompoop

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    Aye the same here. Now you can get a 2TB drive for €100. 1TB is €85 though and 500GB is €65. So we're getting there.
     
  2. m1dg3t

    m1dg3t

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    lilhasselhoffer: They faked "scarcity" in order to justify the price increase and also as you pointed out in your post there aren't other option's except for SSD, which cost more. Which further aid's their "plan" to maximize profit's :eek:

    The consumer never win's :cry:
     
  3. Frick

    Frick Fishfaced Nincompoop

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    And in the end you die anyway. Just kill yourself, it's the only right thing to do.
     
  4. Kreij

    Kreij Senior Monkey Moderator Staff Member

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    Someone hears a rumor that someone may fart in the middle east and our gas prices go up.
    Speculation is a wonderful thing.
     
    Last edited: May 5, 2012
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  5. m1dg3t

    m1dg3t

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    I will never cease to exist, death is irrelevant to me. :cool:

    Such a Sweedish thing to say :p
     
  6. qubit

    qubit Overclocked quantum bit

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    Oh god I can smell it from here! :roll:
     
  7. PopcornMachine

    PopcornMachine

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    I think the situation to cause shortages was real, but the companies involved took advantage of the situation.
     
  8. Fourstaff

    Fourstaff Moderator Staff Member

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    I bet they are praying hard for another flood :roll:
     
  9. Kreij

    Kreij Senior Monkey Moderator Staff Member

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    So the situation (flood) was real, the shortages were real, demand exceeded supply causing price increases and that's the company taking advantage of the situation?

    I'm missing something.
     
  10. Fourstaff

    Fourstaff Moderator Staff Member

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    They definitely did take advantage of the situation, but its the right thing to do as a company whose mandate is to maximise returns to its investors.
     
  11. PopcornMachine

    PopcornMachine

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    So I got one who gets it, one who doesn't. 50% not bad.

    Just saying that prices were raised more than they needed to be.

    It is the capatalist way.
     
  12. Kreij

    Kreij Senior Monkey Moderator Staff Member

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    Well, considering that getting things in and out of an area ravaged by flooding may be quite costly, or getting the alternative supppliers may be a logistic nightmare on short notice, it's possible it was costing them a lot more to do business than usual.
    Just tossing out ideas as we don't exactly know if the price increases were all retail generated (as opposed to the manufacturers).

    But ... we need someone to blame ... so I blame Canada.
     
  13. qubit

    qubit Overclocked quantum bit

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    The floods, deaths and damage were as real as can be and as awful as made out. However, it stands to reason that the companies affected would try to cushion the blow as much as possible by keeping prices as high as possible for long as possible. Frankly, anyone else can do the same and while I don't like being on the receiving end of a price hike, I don't condemn them for it like some people are. I'd do the exact same thing in fact and anyone who didn't would be a fool.

    So, who to blame? Oh well, it's obviously yourself Kreij. Anyone can see that! :p
     
  14. lilhasselhoffer

    lilhasselhoffer

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    Help me understand you. What gives you the authority to say that prices were raised too far? Are you a raw materials supplier for the HDD factories, a worker at the factories, a manager of the manufacturing company, a person who ships the HDDs to their destination, or a purchaser for a large name computer manufacturer?

    Do you have first hand knowledge of what it will cost to rebuild the factories? Perhaps you rendered physical aide to the natural disaster stricken area after the fact?

    No. Then shut it. We all hate price hikes, if you remember I said:
    Given that you have no data to show the prices were raised too high, it's time you either get some or shut it. I can't justify the pricing, but the burden of proof lies on you if you're going to trumpet that it was too far.



    As to SSD adoption, they're seeing a sales boost due to price decreases related to more manufacturers putting out more options; additionally, the maturation of the manufacturing process has let them see the same drops that accompany all maturing technologies. While the flooding was fortuitous (for SSDs, the human toll is beyond horrifying), it wasn't exactly a master minded plot to replace HDDs. Heck, they still aren't anywhere near the cost of HDDs for storage purposes, even if they are a much faster option for OS drives. This price gap was still huge, even when a 2 TB HDD cost 300 USD.
     
  15. PopcornMachine

    PopcornMachine

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    It's my opinion. Didn't realize I needed any authority to express an opinion.

    Why so angry. Work for or own stock in WD?

    Don't know who the heck you think you are, but no one tells anyone to shut it. You are way out of line.

    And this may come as a shock, but I neither remember or care what you said. Certainly will make a note to ignore your comments in the future.


    Did I mention I think they raised disk prices higher than they needed to.
     
    Last edited: May 6, 2012
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  16. Aquinus

    Aquinus Resident Wat-man

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    I think everyone should calm down and be happy that prices have been coming down on HDDs. Even if a WD RE4 costs twice as much as it would have if the floods never happened, but stuff happens, and honestly, when supply goes down price goes up. Why sell hardware that has a dwindling stock at the same price. Increasing price has the two fold effect of bringing in more revenue because people need hard drives and will still pay the premium price while reducing the number of hard drives being bought because of the price, therefore slowing the decline of hard drive stocks.

    Western Digital isn't at fault, it's companies like Seagate who raised prices because WD couldn't compete.
     
  17. Evolved

    Evolved New Member

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    I'm not surprised.

    I knew from the start that WD and SG were milking it.

    Both companies definitely used the flood as an excuse to gain more profit.

    There was literally no shortage of HDD's at my store.
     
  18. Chevalr1c

    Chevalr1c

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    That is but one store of many. Additionally, where in the world is it located and is it a retailer or a "Retailers'supllies" kind of store? I smell a bad deduction here.
     
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  19. syeef

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    In my country 1TB HD used to go for 7,000 BDT, now it is going for 14,500 BDT. Waiting for several months for the price to come down so that I may get one.
     
  20. Chevalr1c

    Chevalr1c

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    It doubled at your place, that is quite extreme.
     
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  21. Aquinus

    Aquinus Resident Wat-man

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    Stop trolling, and don't post unless you have something to talk about on topic. This is about HDDs, not how another person makes deductions.
     
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  22. m1dg3t

    m1dg3t

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    The flood was real. You honestly think they keep/kept all their "egg's in one basket" :confused:

    The corporation's are a lot smarter than we are, that's why they're rich and we're poor ;)
     
  23. lilhasselhoffer

    lilhasselhoffer

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    I don't own any stock. I don't believe that you are basing a conclusion on any facts, but you are proposing that a company is slighting you. By the same standards:

    There is a conspiracy on auto insurance.
    There is a conspiracy on gasoline prices.
    There is a conspiracy on the moon landing.

    All of these statements are made without any basis in fact, but must be true because I said so. Do you see the problem I have believing a conspiracy exists, when no facts are presented. I suggest that there is no conspiracy, but agree with you that prices are too high. It sucks, but isn't a conspiracy as the OP stated (and what the subsequent discussion was about). On top of that, neither you nor I have the knowledge about current pricing (my first hand knowledge is 6 years old) so stating that it was too high isn't up to either of us. The only reasonable conclusion is that we all shut up about a conspiracy, not to stop railing for more reasonable pricing.


    Perhaps you don't understand the reality of manufacturing. Several millions, or hundreds of millions, is spent on a factory. They produce a products, whose profit curve looks like a bell. They only start making money after a while, and they don't make back their initial investment for years.

    You can't just build a dozen plants scattered around the globe, because companies don't run in debt like the governments seem to. The reason that the factories are built where they are is access to workers, resources, and low cost. These three factors come together in very few places. So even if companies could afford multiple location, they may not have the location to build in. On top of this, natural disasters aren't something you expect, by their very nature.

    So the only theoretical remainder is a stash of HDDs kept somewhere. That is unlikely, as the storage wars have driven profit margins down very low. Lower profits mean that very few units can be kept in storage before the bottom line is hurt. So no "secret eggs" there. Seems like they couldn't be hiding anything...


    By the same logic, there is no oil shortage. I have several local gasoline stations, and the pumps there always have fuel.

    Kinda sounds funny when I say it out loud?

    You are looking at the store front, and denying the rest of the supply chain exists. Unfortunately, life doesn't work cleanly as that.
     
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  24. m1dg3t

    m1dg3t

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    As a matter of fact it is obvious to me that YOU don't understand the reality of, well, reality lol

    At this point i'm going to agree to disagree with you and politely bid you good day :toast:
     
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  25. lilhasselhoffer

    lilhasselhoffer

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    Agreed. Last post, and anyone else is welcome to the final words. :toast:
     

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