This is the latest information we have been given regarding the hard drive shortage resulting from the floods in Thailand.
It seems that the shortage could persist for much of next year. This is a blow to CCTV installers who have seen prices falling recently, there is however little that can be done in the short term to rectify this situation.
How will the Thailand floods affect your HDD supplies?
The infrastructure impact is still being assessed, but 30-40% of Hard Drive component production is done in Thailand and more than 25% of HDD assembly production is located in the Thailand flood area.
Therefore we have to assume that the impact will be considerable. The industry analysts are stating that:
- There is significant shortage in Q4 2011 and it could be worse in Q1 2012. It may affect Q2 2012 (source: 3IDC)
- Up to 70% price increases (source: 3IDC)
- Pre-flood volumes will not come back until Q4 2012 (source: Gartner)
- Pricing will be affected (source: Gartner)
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Importantly, we have already seen hikes in prices in conjunction with industry consolidation (WD/Hitachi & Seagate/Samsung). The main consideration, however, may not be the price but whether your hard drives are available at all.
Taken from an update from SCC