AfterDawn: Tech news

Western Digital agrees hard drive prices won't drop until 2013

Written by Rich Fiscus (Google+) @ 24 Jan 2012 14:14 User comments (9)

Western Digital agrees hard drive prices won't drop until 2013 Western Digital executives expect hard drive production, which took a hit thanks to flooding in Thailand last year, to return to normal levels in the second quarter of 2012, reaching retailers some time in the following quarter.
Prior to the floods, Thailand was home to multiple hard drive manufacturing plants, including the single largest drive spindle manufacturing facility in the world.

The comments, from Western Digital CEO John Coyne and COO Timothy Leyden, came during the company's quarterly earnings call with analysts yesterday. Coyne indicated the company doesn't expect retailers to reach pre-flood inventory levels until some time in 2013.

During this time he sees demand outpacing supply in reaction to current shortages. This mirrors the thoughts of Seagate CEO Stephen Luczo from last November.

Leyden provided additional details. He said that while Western Digital's assembly capacity has returned to normal, they are limited by the availability of crucial components. Specifically, he said, there is a shortage of sliders, which are an essential part of the read/write head assembly in a hard drive.

In order to avoid the current situation in the future, he also says they are duplicating some of their Thai production in neighboring Malaysia. They are also working with suppliers on similar moves.

On top of that, Western Digital will be augmenting a flood wall planned by the Thai government "with company-specific initiatives."

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9 user comments

124.1.2012 14:59

There has been tons of info about this shortage...
But no info about any new tech that will increase drive capacity.

Drive capacity has increased every year for the past ten years or more... until now.

I smell a rat.


Oh, Im sorry... Did the middle of my sentence interrupt the beginning of yours?

224.1.2012 15:10

Originally posted by ThePastor:
There has been tons of info about this shortage...
But no info about any new tech that will increase drive capacity.

Drive capacity has increased every year for the past ten years or more... until now.

I smell a rat.


Never thought of this..........thanks! You shed new light on a rat-infested situation.

325.1.2012 2:20

What better way to get more for a product by taking a leaf out of OPEC's book,reduce the supply increase the profits,if they're smart they'll do exactly that & strangle supply indefinitely i would


425.1.2012 7:11

Conspiracy theorists seldom understand economics. So, you are not to be blamed for "smelling a rat"...that isn't there.

525.1.2012 12:17

Originally posted by Blessedon:
Conspiracy theorists seldom understand economics. So, you are not to be blamed for "smelling a rat"...that isn't there.
Economics is another form of statistics. Both forms use mathematics as a logical basis to prove their respective platforms, to which the proposed 'infallible' numbers can be made to say anything to prove a debating a point. None of which are lies. Just truths of that particular beholder's. So let's not start this court of urination, tour de force please.

So, no, not necessarily conspiracy. But it 'can' definitely be a creative use of a bad situation.

625.1.2012 18:16

Yeah, that's kinda what I think. That they've been using this "disaster" to not only reduce demand and raising margin, but to reduce R&D with the result of there not being any new, larger hard drives available.

Someone did mention a new 4TB drive listed at Newegg.com. That's the first new HD I've seen in a year.


Oh, Im sorry... Did the middle of my sentence interrupt the beginning of yours?

725.1.2012 21:06

New flash: to the people who build these factories, why not put it somewhere where it doesn't rain 24/7? Since Thailand is most a tropical climate, wouldn't it make a little sense to put it in a more temperature environment and a little higher in altitude? Less exposure to moisture and flooding is ALWAYS a plus!


Chance prepares the favored mind. Look up once in a while and you might learn something. - BLUEBOY

826.1.2012 12:51

Originally posted by blueboy09:
New flash: to the people who build these factories, why not put it somewhere where it doesn't rain 24/7? Since Thailand is most a tropical climate, wouldn't it make a little sense to put it in a more temperature environment and a little higher in altitude? Less exposure to moisture and flooding is ALWAYS a plus!
A desert 'would' be great, but the first smattering of a sprinkle one afternoon & the same thing would happen because the corporate nut sack bean counters wouldn't spend the proper money for irrigation. Because, "who needs irrigation in a desert?"

923.8.2012 17:00
nnvan
Unverified new user

Originally posted by blueboy09:
New flash: to the people who build these factories, why not put it somewhere where it doesn't rain 24/7? Since Thailand is most a tropical climate, wouldn't it make a little sense to put it in a more temperature environment and a little higher in altitude? Less exposure to moisture and flooding is ALWAYS a plus!
You build factories where you have cheap labor and stable political systems. Most places on earth are vulnerable to one kind of natural disaster or another.

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