Brian

Who Stands to Gain From Hard Drive Shortage Discussion

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If we've learned anything after Western Digital and Seagate's quarterly conference calls this week, it's that the hard drive industry is going to be pretty "volatile," as both companies say - or layman's terms, a cluster$%@* - over the next 6-9 months. Flooding in Thailand has caused severe issues for both companies, but WD's heavy exposure to not only Thailand, but specifically the heavily flooded region, is causing them an extra level of pain. Regardless of which company hurts more, the industry at large is going to suffer, with forecasted drive supplies for the current quarter only reaching 62-76 million units from WD and Seagate out of projected demand of 170-180 million units.

Who Stands to Gain From Hard Drive Shortage?

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thx for the post, hadnt really thought about problems the flooding over there would cause. makes me even happier about the deal i got fron newegg on 2 500 gig re4's the other day- $140 to my door for both.

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It will be interesting to see if SSD manufacturers increase their prices (just because they can).

Edited by Ace

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I would guess not, there's still a major fight for market share here as we haven't seen the consolidation yet in the market that many expected.

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I would guess not, there's still a major fight for market share here as we haven't seen the consolidation yet in the market that many expected.

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We're seeing 20 to 25% spikes in drive prices... good thing (pure luck) a few large orders of drives were placed before the price increase. (maybe my purchasing guys have a crystal ball somewhere??)

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Wow a 3TB 7K3000 on newegg is $400 ! A reviewer said they bought it for $150 a month or two ago.

http://www.newegg.com/Product/Product.aspx?Item=N82E16822145472&SortField=0&SummaryType=0&PageSize=10&SelectedRating=-1&VideoOnlyMark=False&IsFeedbackTab=true#scrollFullInfo

The price hikes are getting insane. Laptop drive prices are up too. Why are Seagate drives getting a price hike if they haven't really been hit by flooding?

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Right, WD is hit hardest, but Seagate is also suffering from lack of components. Either way, only half the market is likely to get filled this quarter, so anyone who has drives is going to charge through the nose for them.

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Another interesting data point:

The WD20EARX 2TB Green that was available on Newegg a few weeks ago for $90ish jumped to $125 the day of this article and hit $229 today on Newegg. That's almost a 3X jump. I bought one at a local shop for $112 the day this article came out - that shop now has them listed at $249.

(One of WD's financial types (I think it was the CFO) the other day said on a conf call that they were "overweight in Thailand" compared to other HDD manufacturers. Yeah, just a tad.)

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Well overweight in Thailand is fine...but they're grossly obese when it comes to being in the affected area. Just horrible luck, I'm not sure if such a thing was foreseeable. At least there's Malaysia.

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... but as I said Nidec's operations are back online for a number of days now..

Bullcrap. They are in bad stinker as everybody else. Nidec in Rojana is totally drowned and will be for many many weeks. That plant alone made 20% of their output. Shifting to other locations will take time, even for them...

http://www.nidec.co.jp/english/news/indexdata_e/2011/1026.pdf

Imported from the other thread...

Even if operations are coming back online, there are still several logistical issues that are keeping things from being far from "normal." As to the price gouging, this happens any time there's more demand than supply.

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