Report: PC hard drive prices might go down next month

A few weeks ago, the flooding in Thailand was causing a number of major PC hard drive makers to shut down their factories in that country. This caused PC hard drive prices to go sky high, with hard drives selling (if you can find them) for three times their normal amount. Now a new report from Digitimes claims that things may not be quite as bad as they could be in the hard drive industry.

The report claims that several channel retailers, who had been stockpiling hard drives since this issue began, might actually unload some of their inventory in December. This is apparently due to the demand of hard drives not overcoming the current supply as previously thought. The idea is that hard drive prices could be lower in December.

Furthermore, hard drive supplies are expected to bounce back in January and February 2012. This is due in part to PC hard drive makers such as Seagate and Western Digital finding ways around the issues surrounding their Thailand factories being affected by the floods. Nidec, a company that makes hard drive motors, has also reported that its Thailand plant is now back in operation.

So a combination of lower demand for PC hardware with factories in Thailand going back online has apparently saved the PC hardware industry from a rather major bottleneck in production. Of course, things could change for the worst again so we will keep an eye out for any further developments.

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16 Comments

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I ordered a drive for a friend to replace.. in 5 days after I got it the sucker jumped 20$ more in price. Soon later a $60 drive went to $99 that is just insane and should be illegal! Gas prices are just as bad if you want to talk about that... they should be no higher than $2/gallon average!

Majesticmerc said,
Who wants to bet that when factory output re-stabilizes, that prices won't come back down to their original low price?

They will eventually. Do you think hard drives are just going to stop getting larger and cheaper?

Majesticmerc said,
Who wants to bet that when factory output re-stabilizes, that prices won't come back down to their original low price?
I disagree. I think they'll go back down for sure. The prices were formerly set by supply / demand and the price hikes we're seeing now are just ridiculous merchants trying to cash in. It's not working and many people are choosing to wait it out. I'm one of them. I have to buy a few 2TB drives but I can wait! There's no way I'm paying (literally) 3x for a drive when compared to what I paid just a few months ago.

A lot of companies put their prices up before they'd used up their existing stocks so are just profiteering from the situation -.-

This is the case with me. I've got a home server with a dying drive but I'm just keeping daily syncs to my NAS box and will wait until normal prices again.

So basically they were stockpiling with the hope of price gauging. I wouldnt say the price is triple, I woukd say 1.5 from the suppliers I go to. I even picked up a drive at pre-flood prices a few days ago from Officeworks (in AU) I find that they always have the best prices on external HDDs, even better than MSY

Meanwhile seagate contrary to this article is saying this could last a year and won't be fixed until the end of 2012...

Over here the web shops all kept low prices on existing stock and only increased along with supply prices as they ran out.

I must say out suppliers started price goudging pretty quick in AUS... 500gb drives (Stocked) doubled in price in the first week and trippled in the weeks after....

At least some suppliers started doing "per order pricing"

brent3000 said,
I must say out suppliers started price goudging pretty quick in AUS... 500gb drives (Stocked) doubled in price in the first week and trippled in the weeks after....

"Tripled" has 2 p's in Australian English?