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HDD market struggles with 70 million shortfall

by on29 November 2011

180 million units needed in Q4

The effects of the HDD shortage, caused by flooding in Thailand are expected to linger and affect the market for months.

Just how bad is it? Well, according to Tom’s, global supply is about 70 million units short in the current quarter. The market needed 180 million new hard drives by the end of the year, but the massive disruption will result in only 110 to 130 million drives being shipped worldwide.

The results are nothing short of disastrous for end users. Although major vendors are still managing to get their hands on hard drives, albeit at somewhat higher prices, retail prices have gone through the roof. Major vendors such as Acer, Asus and Dell are set to increase notebook prices by a few percent in December, despite the fact that they will get priority shipments.

Some Taiwanese vendors expect the shortage to ease in the first quarter of 2012, but it is still not clear when retail prices will go back to normal. Less optimistic manufacturers and analysts believe the shortage will drag into the second quarter of 2012.

More here.

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