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
Add your own comment

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

#1
Fx
this is a lose, lose, lose situation

it sucks for the victims, sucks for manufactures and it sucks for those of us who need more TBs :
Posted on Reply
#2
kajson
what i'm hoping that will happen, is because traditional hhd's will be less interesting compared to SSD as you have to fork over the same amount of money, be it a lot less capacity but still financially same investment. Thus peeps will run to shortterm investment in SSD.

This will result in SSD production increase and slightly increased prices, (or big increase if we're unlucky) But when the normal HDD production is back on track, the increased SSD production capacity will make the prices of SSD plumet...

Thats what i'm hoping anyways ;)
Posted on Reply
#3
Jack Doph
kajson said:
what i'm hoping that will happen, is because traditional hhd's will be less interesting compared to SSD as you have to fork over the same amount of money, be it a lot less capacity but still financially same investment. Thus peeps will run to shortterm investment in SSD.

This will result in SSD production increase and slightly increased prices, (or big increase if we're unlucky) But when the normal HDD production is back on track, the increased SSD production capacity will make the prices of SSD plumet...

Thats what i'm hoping anyways ;)
Interestingly enough, Seagate is streamlining its offerings of HDDs and some will be hybrid drives, to replace the current line-up of high performance drives.
Also, Seagate will be phasing out its line of 5900RPM drives completely (the infamous 2 dimes savings).
So, in a few months' time, Seagate (not sure about competing offerings) will use 7200RPM drives only, or as part of their hybrid series (SSD & HDD combined - improved XT series, if you will).
Posted on Reply
#4
AhokZYashA
Jarman said:
do you really need any more porn?
yeah, i need more of them,
;)
Posted on Reply
#5
Laurijan
I have followed the price of Buffalo 2TB USB 2.0 and the price has increased from 99€ to 165€ the USB 3.0 model is up from 120€ to 217€
Posted on Reply
#6
tigger
I'm the only one
Jack Doph said:
Interestingly enough, Seagate is streamlining its offerings of HDDs and some will be hybrid drives, to replace the current line-up of high performance drives.
Also, Seagate will be phasing out its line of 5900RPM drives completely (the infamous 2 dimes savings).
So, in a few months' time, Seagate (not sure about competing offerings) will use 7200RPM drives only, or as part of their hybrid series (SSD & HDD combined - improved XT series, if you will).
I'm using a Seagate 5900rpm drive, i like it coz its very quiet and does not seem to effect my pc or games at all.
Posted on Reply
#7
Easy Rhino
Linux Advocate
please remove the word "extortion" from the news title. there is no extortion happening. news fail.
Posted on Reply
#8
NdMk2o1o
Easy Rhino said:
please remove the word "extortion" from the news title. there is no extortion happening. news fail.
HDD Prices To Remain Extortionately High

Extortionately is not the same as extortion, I see nothing wrong with the title :confused:
Posted on Reply
#9
hhumas
2 weeks ago I went to computer market and asked the shopkeeper to tell the price of WD element SE 1tb usb3.0 its was 8.4k

and now 3 days back again asked and he said now 10.4k ..

its all due to flood
Posted on Reply
#10
Easy Rhino
Linux Advocate
NdMk2o1o said:
HDD Prices To Remain Extortionately High

Extortionately is not the same as extortion, I see nothing wrong with the title :confused:
it means the same thing. "extortionately" is the adverb describing "high." the title assumes that if extortion were happening hard drives would cost what they do after the flood disaster. so the title links extortion and the current price of hard drives.
Posted on Reply
#11
NdMk2o1o
Easy Rhino said:
it means the same thing. "extortionately" is the adverb describing "high." the title assumes that if extortion were happening hard drives would cost what they do after the flood disaster. so the title links extortion and the current price of hard drives.
Really the title assumes all that? meh ok :rolleyes:

As far as I am concerned it's fitting they are extortionately high compared to 2 weeks ago, that is not the same thing as saying there is extortion happening and that's why they are so high, but I guess it's how you read it?
Posted on Reply
#12
Wagoo
Nabbed another 5 drives, empty shelves in all 3 local branches of the shop now. 18 TB should see me through these terrible dark times!
Posted on Reply
#13
Easy Rhino
Linux Advocate
NdMk2o1o said:
Really the title assumes all that? meh ok :rolleyes:
that's because i'm a critical thinker.
As far as I am concerned it's fitting they are extortionately high compared to 2 weeks ago, that is not the same thing as saying there is extortion happening and that's why they are so high, but I guess it's how you read it?
so you too assume that if extortion were happening in the HDD industry they would cost the same as they do now? that assumption belongs in the comments section, not in the news title.
Posted on Reply
#14
NdMk2o1o
Easy Rhino said:
that's because i'm a critical thinker.



so you too assume that if extortion were happening in the HDD industry they would cost the same as they do now? that assumption belongs in the comments section, not in the news title.
It's your assumption, please don't put words into my mouth or tell me what you think I am thinking. I don't read what you're reading, the joys of the english language are such that there are a myriad of words that can be used in different contexts and situations to describe something, it's all about context. However how would you describe all HDD prices going up from existing inventory and from manufacturers that don't have any manufacturing plants in Thailand? extortionate? supply and demand, opportunistic? same with e-tailors with stock they have had since before all of this happened.

It's figurative and one could say you were being literal or pedantic..
Posted on Reply
#16
Jack Doph
With all due respect to all concerned, the prices are very much extortionate.
When some 25% (or less) of all HDDs are manufactured in Thailand, yet the price of HDDs is doubling or tripling in price, then the only conclusion that can be drawn is what I mentioned before.

Yes, WD has invested heavily in operations in Thailand, but the other major HDD manufacturers (most notably Seagate and Toshiba) have no such investment, yet their prices have gone up by the same amount, then one has to wonder..

Human tragedy == massive profit.
It's not the first, nor the last time this happens.
If evidence to the contrary can be presented, I'm most curious, especially as I have worked both in a hospital for 7 years, as well as having toured some of the plants where HDDs are made (a clean room that's up to 100 times cleaner than an operating theatre is quite an experience to behold).

Oh mighty dollar :/
Posted on Reply
#17
Damn_Smooth
Jack Doph said:
Nonsense.
Less than 25% of HDDs are manufactured in Thailand, so there is most definitely a case for price gouging going on.
It's yet another typical response by businesses to turn a human tragedy into a profit margin.
That said, it is true that WD in particular has invested a lot of their operations in Thailand, but this is far less true for the other manufacturers (Seagate in particular).
I guess I should probably keep better track of my manufacturing plants and quit believing what I read then.

I probably won't though because that knowledge won't get the prices any lower.
Posted on Reply
#18
Jack Doph
Damn_Smooth said:
I guess I should probably keep better track of my manufacturing plants and quit believing what I read then.

I probably won't though because that knowledge won't get the prices any lower.
That is the unfortunate truth - you & I both don't want these prices, yet.. here we are :/
Posted on Reply
#19
Damn_Smooth
Jack Doph said:
That is the unfortunate truth - you & I both don't want these prices, yet.. here we are :/
I'm just hoping nothing critical comes up where I absolutely need a drive, until this blows over. I wonder how high the prices will get if we're still at the beginning. Bah, I don't want to think about it.
Posted on Reply
#20
Jack Doph
Agreed.

If only SSDs weren't so bloody expensive XD
Posted on Reply
#21
Damn_Smooth
Jack Doph said:
Agreed.

If only SSDs weren't so bloody expensive XD
If this keeps up, they might seem cheap. Now that's scary.
Posted on Reply
#22
Jack Doph
Damn_Smooth said:
If this keeps up, they might seem cheap. Now that's scary.
:laugh:
I rue the day XD
Posted on Reply
#23
Damn_Smooth
Jack Doph said:
:laugh:
I rue the day XD
I've wanted one for a long time but I was hoping it would be a good deal because prices came down, not because mechanical prices went up.
Posted on Reply
#24
Neuromancer
First, sorry was not trying to thread crap I was just half asleep but it does appear to be a crappy post (mine I mean).

Second,

This does make SSDs look more manageable.

Also externals have not changed much, I got an email last week about 2TB for $79...
Posted on Reply
#25
Easy Rhino
Linux Advocate
NdMk2o1o said:
It's your assumption, please don't put words into my mouth or tell me what you think I am thinking. I don't read what you're reading, the joys of the english language are such that there are a myriad of words that can be used in different contexts and situations to describe something, it's all about context. However how would you describe all HDD prices going up from existing inventory and from manufacturers that don't have any manufacturing plants in Thailand? extortionate? supply and demand, opportunistic? same with e-tailors with stock they have had since before all of this happened.

It's figurative and one could say you were being literal or pedantic..
sorry i take news literally. :rolleyes:

Jack Doph
With all due respect to all concerned, the prices are very much extortionate.
When some 25% (or less) of all HDDs are manufactured in Thailand, yet the price of HDDs is doubling or tripling in price, then the only conclusion that can be drawn is what I mentioned before.
you do realize that higher prices = less sales right? HDD sales will suffer because of this. nobody is going to gain anything from really high HDD prices. do you know why the prices go up? because supply is down and demand is the same. honestly, i thought this was all common sense...
Posted on Reply
Add your own comment