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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 thisisaname on 10/24/2011 5:37:18 PM , Rating: 0
That's a bunch of crap and you know it. My Samsung hdd, was made/assembled in Korea. Yet, that same hdd I purchased from Newegg a few months ago for $35 suddenly jumps to $43 yesterday. Another Samsung I had in my wishlist for so long, was $35 for a long time, suddenly jumps to $55 yesterday. And that's just Samsung, all hdd's listed there have gone up dramatically.
There is NO shortage of current stock. Newegg and everyone else got them at pre-flood prices, but are suddenly charging flood prices for them. Most of which ARE NOT affected by the flood. This is typical corporate greed at work.
Open your eyes people.

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
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