Hard Disk Drive Prices may hit Pre-Flood Level Prices in 2013, Analysts Say No, 2014

by Brian Tompkins
in Apple · Gaming · Hackintosh · Intel · Mac · Microsoft · Random Tech · Ultrabooks · Windows
— 10 Jul, 2012

The Thailand flood of 2011 is continuing to have a lasting effect on the prices of HDDs and that prices won’t fall to pre-flood levels until 2013.

According to Western Digital European sales director, Ian Keene that due to added costs, such as capital damage from the flooding, and the cost associated with shifting production to Malaysia the company needs the time to recoup their losses.

“There are a lot of added costs right now.” ”WD spent a lot of money on capital damage, running (under-utilised) factories that still paid people and mitigating risks of (future) floods.”

However, IHS iSuppli industry analysts are painting a more grim picture predicting that it will take until 2014 for prices to drop to their pre-flood levels due to long-term agreements HDD makers coerced OEMs to sign during the peak of the flood into in order to ensure availability. These agreements locked OEMs into purchasing hard drive priced at rates that are around 20 percent higher than pre-flood levels. The company also noted that the duopoly of WD and Seagate stands at 85 percent share of the worldwide market, and that it could serve to artificial keep prices high until 2014.

VIA: MAXIMUMPC Source: The Register

Tags: 2014 Analysts Say No floods Hard Disk Drives Prices May hit Pre-Flood Level Prices in 2013 HHD Prices

— Brian Tompkins

Is 29, a serial entrepreneur from New York. Major Apple  Fan, as well as critic. Couldn't live without his Mac, iPhone, or iPad. Has a soft spot for Nexus Android devices. Huge fan of Tech Gadgets and when he has the time, loves video games.