Due to the flooding in Thailand and surrounding areas, WD have had to close 2 factories. 1 due to it being underwater and the other as it is inaccessible. This has resulted in a hard drive shortage in the short to medium term. As a result Western Digital have recalled all hard drives that are currently in transit to the World wide channel so they can reallocate supply.
They will be prioritising the channel in order to keep supplies flowing but still project they will be about 16 million drives short this quarter. The biggest worry however is that there is currently no visibility on when the closed factories will reopen as that all depends on when the floods recede and the state of the factories after.
As Thailand is integral to where Hard drives and their components in general are manufactured (Seagate, Hitachi and Toshiba all have plants there) it is projected there will be a 50 million unit shortfall this quarter again with no realistic date as to when supply shortages will ease.
Hard drive shortage is inevitable and price rises will be reflected in line with the shortfall.
Tags: hard drive shortage