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HDD Shortage to Continue

HDD Shortage to Continue

Due to flooding in Thailand inundating some of the world’s largest HDD production facilities, there has been an ongoing shortage of the storage medium and unfortunately it looks set to continue.

While the water looks set to subside in the next couple of weeks, the cleanup is going to take far longer. Early estimations of how long it will take to catch up on missed orders and resume normal supply schedules put it at several months.

IDC and iSuppli, have made claims that supply issues could result in anywhere up to 28% market shortage over the coming 6 months. Some claim that this will lead to increased SSD sales as there is less competition from HDDs on the market and people don’t want to wait before making a purchase.Especially if they were hoping to buy a Western Digital (perhaps raptor)drive, IDC estimates that up to 75 percent of the company’s production will be shut down during cleanup.

Notebook production is also expected to be affected, with the ones that utilise a larger storage capacity not coming into stock in large numbers again until some time in early 2012.

In Q3 of this year, there were some 173 million HDDs shipped worldwide. In Q4, it is likely that this number will drop to somewhere around 120 million, representing a massive drop in output from the HDD manufacturers. This is resulting in price increases of course, with the predicted 10 percent jump made by some firms already being firmly surpassed.

Photo from Broadband Buyer.

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