Actually, johnw42, those who understand MORE than freshman or "basic economics" know that when there is a supply shock of decreased supply, prices CAN & OFTEN, but NOT always adjust higher in order to match demand to the decreased supply.
Then there's also the very REAL economic reality of oligopolies and PRICE GOUGING (ref: Seagate who was NOT directly affected by the floods, only indirectly by supplier problems), reduced competition and price fixing collusion, "back door" price hikes such as reduced warranties (Seagate and WD colluded to reduce warranties within one day of each other and there is 0.00% chance this was coincidence), both will now happily SELL you an "extended" warranty matching the old one at an inflated price, and the underlying reality of it all, opportunity and greed.
Do companies need to make a profit? Absolutely. Are these companies going to continue delivering old goods at higher prices, with shorter warranties, and near record breaking profits (mostly due to lies at this point)? They sure will, and we'll pay for it. There will be little or no price competition among these two new industry owning "friends"... ,
Let's all take a few minutes to feel sorry for Seagate while johnw42 learns how businesses - that are run by people, not academic theories - really operate...
See Financial News, 17th April 2012 22:48 GMT
"Seagate made huge profits of $1.1 billion on revenue of $4.4 billion in its third fiscal 2012 quarter......"