Print 18 comment(s) - last by SuperSix.. on Oct 26 at 12:00 PM

The battle against flooding in Thailand continues  (Source: Reuters)
Thailand continues to suffer from major flooding, which is having a major impact on the PC industry

PC sales are under continued pressure from a hard drive shortage caused by major flooding in Thailand, with one-fourth of the world's HDDs originating from the flood-ravaged nation.

The floods have shutdown more than 14,000 factories and forced at least 660,000 people out of work -- and has also severely damaged an already fragile global PC industry.  Thailand remains the No. 2 maker of HDDs commonly used in PCs, notebooks and servers -- with hard drive manufacturers already suffering from lower demand for PCs and peripherals.  

Both Western Digital and Seagate have warned of shortages because of supply issues, while Apple and other computer makers also confirm storage problems.

Earlier in the month, WD confirmed it was going to extend the suspension of Thai facility operations, due to manufacturing facilities being flooded.  Even with manufacturing facilities still functional in the United States, Singapore and Malaysia, flooding "will have significant impact on the company's overall operations and its ability to meet customer demand" for the rest of 2011.

Even worse for WD, CEO John Coyne predicts a 60% quarter revenue decline from the same period last year, as the company looks to rebound as fast as possible.

Seagate's Thai production has not been hit as hard, but the US hard drive maker is expected to have a difficult time finding parts for its products.

Some companies are trying to shift manufacturing from Thailand to other facilities, and all of them must rebuild and assist their employees.  Seyyon Semiconductor expects it to take at least one year for the Thai tech industry to fully recover, with the industry to remain volatile.

The Thai government has confirmed their efforts at draining floodwater has been more successful, while Bangkok Governor Sukhumbhand Paribatra warned residents to be prepared for increased flooding.

Source: CRN

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RE: Newegg should burn
By SuperSix on 10/24/2011 5:26:42 PM , Rating: 5
You are completely wrong, and should do a bit of research before making such statements instead of parroting things you don't know about and just read on other forums.

While Seagate, et al do indeed assemble their drives in China, Malaysia, etc - many of the PARTS needed for said drives are manufactured in Thailand, and those plants are flooded. The best example is Nidec spindle motors - which are used in 75%+ of HDD, their plant is flooded, and it will be months before they will be back in full production. The company that makes the slider mechanisms - down and out. And many other component manufacturers.

And - if WD can't ship any drives, what does that cause to the supply of the other manufacturers - It will also out them in severe shortage. It's called supply and demand. I can tell you with confidence that there's very little of ANY manufacturer available.

Am I saying there's NO price gouging or hoarding? No, but this is the way a free market operates.

RE: Newegg should burn
By thisisaname on 10/24/11, Rating: 0
RE: Newegg should burn
By SuperSix on 10/24/2011 5:55:35 PM , Rating: 4
I am an account executive at the distribution company that Newegg, Amazon, Mwave,etc BUY their hard drives from. I have been here for 10 years. I have friends that I have discussed this with that work at the other major distributors, and there is no excess stock, It's not some big conspiracy to raise prices. You can't assemble product if you don't have the parts, regardless of the geographical location of your plants. There ARE major shortages, I see the stock levels.

You are a fool, and don't understand basic economics, and the industry in general. You don't sell on what you pay for things, you sell based on replacement cost.

RE: Newegg should burn
By thisisaname on 10/24/11, Rating: 0
"I want people to see my movies in the best formats possible. For [Paramount] to deny people who have Blu-ray sucks!" -- Movie Director Michael Bay

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