January 31 2012

HD Shortage From Thai Floods

Posted on the 01:33 pm under Computer Hardware by Darren Boyer

A worldwide shortage of hard drives is affecting the Technology Industry as many of the Thai-based factories continue to struggle with the damage and effects from flooding.

The majority of the world’s hard drives are produced in factories located in Thailand, where the flood crisis has put a damper on many industries, hard drive producers included. 

According to reports, the shortage is already driving hard drive costs up and may just be the beginning of that trend. Prices for hard drives began to increase as early as November 2011 and can add as much as $150 per drive to the cost of business class servers.  Some manufacturers such as Lenovo are forecasting shortages in the near future but have managed to maintain price levels up to this point. With flooding still an issue for some producers the shortage could expand.  If there is limited ongoing damage it is estimated the industry could recover as early as the summer of 2012 up to full capacity.

As of now, there is still no concrete solution in sight for the problem with the supply of hard drives in the world.  While reconstruction efforts in Thailand are ongoing, getting the hard drive industry on its feet will take a while. One manufacturer, Lenovo, has begun to offer a creative solution to this problem by discounting the price of Solid State Drives (SSD) as a replacement to the traditional hard drive.  The promotion currently in place offer’s upgrades to the SSD drive for as little as $100.  SSD’s are not in as short of supply and this may help alleviate the impact on customers.

Written by Darren Boyer

Darren Boyer

Darren Boyer is the founder and president of pcit.

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