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November 9, 2011

What Why! Reason for Hard disk Price Rise-Thailand floods

So if you are wondering what this post is about, well if you had seen the movie "The butterfly effect" or "The sound of thunder" then you'd get the idea of how a small thing can make a huge difference. 

Even a flap of a butterfly may have an effect somewhere on this planet. So you get the point I think.You would've heard of the recent flooding in Thailand

and if you think that it has nothing to do with you since you are somewhere around the planet far away from Thailand, well think again. You would've also heard that there is a steep rise in the price of hard disk recently. You know why?

Well, Thailand produces around 70% of the world's hard disk and the recent flooding caused the hard disk giants like SEAGATE and Wester Digital to shut the production causing global demand of hard disk to sky rocket.

And consequently the prices of hard disk also raised to almost 110% of the previous. If you had any plans of buying hard disk, then think again! You just gonna have to wait atleast 6 more months to hope for a considerable reduction in the prices of hard disk. Also the computer shops are making use of this situation to increase the prices of other products like processor, RAM and monitor.

Even the shop that I used to buy increased prices for several products. Now the external and internal hard disk cost the same amount and I don't want to pay 100% more price and neither should you.  Don't panic and rush to the shops, wait for some time and see if the prices come down after the manufacturing of hard disk at the SEAGATE starts to its full potential. Buy now only if its necessary.

Here is what SEAGATE said in a press release on Oct12,2011.

"Currently, all Seagate factories in Thailand are operational and there are no logistical issues with employees reaching its factories. However, the hard disk drive component supply chain is being disrupted and it is expected that certain components in the supply chain will be constrained."

Here is what WD said in a press release on Oct 17,2011.

"Western Digital Corp today announced that it has extended the suspension of its operations in Thailand. Over the weekend, rising water penetrated the Bang Pa-in Industrial Park flood defenses, inundating the company's manufacturing facilities there and submerging some equipment. At the other company manufacturing location in Thailand, Navanakorn Industrial Park, the park flood defenses were breached on Monday morning local time and water has begun to flow into the park threatening the company's facilities there. All WD employees in Thailand remain safe."