SSD and HDD Price Analysis: End of Shortage In Sight?

Subject: Storage | December 18, 2011 - 11:20 AM |
Tagged: WD, thailand, ssd, Seagate, hdd, Hard Drive, flooding

The hard drive industry might be recovering more quickly than expected and the entire tech field should be hoping that is the case.  We have been covering the unfortunate disaster in Thailand and the accompanying disruption in the world of storage since things first started hitting the fan in October.  The initial result was a very dramatic price increase on traditional spinning disks - prices going up as much as 200% in some cases.  This week we got our hands on some very interesting data from Dynamite Data, a company focused on channel monitoring, that they were willing to let us share with you.

First, the bad news that we already know about - the price increases we have seen percolate throughout the entire industry in the last two months.

ssd_hddpriceindex.png

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This graph shows the average price of the top 50 spinning disk drives over the last year in red and the very specific Western Digital Velociraptor 150GB pricing on Amazon.com in blue.  You can see that around October 16th the big price increase began and over the entire ecommerce span that Dynamite Data monitors, prices on the top 50 HDDs went up by 42%.  And while not shown in the graph, other provided data shows that at its peak the low-cost leaders in the HDD market increased their prices by 150% as of early December.

Why did this happen?  Looking at inventory levels clearly shows the drop in availability.

ssd_hddinventory.png

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Based on those same top 50 SKUs, we saw ecommerce inventory drop by 90% in late October (in less than one week!) after the first impact on the supply chain that occurred on October 8th. What is interesting is that it took a week or more for the price changes to take place based on the analysis of the disaster in Thailand.  Much to the dismay of many of the conspiracy theorists out there though this data definitely backs up the price increases from WD, Seagate and others. 

There is an uplifting bit of news in both of the above the graphs though - look towards the end of the time lines of gathered data.  Both show movement in the direction of consumer's interests: a jump in inventory and a drop in average pricing.  WD announced on November 30th that the first of its production facilities was back online and we are already seeing results.  Of course the CEO of Seagate is still claiming that it will take more than a year for the industry to recover but it looks like supply may increase at a quicker rate than initially expected. 

Finally, just for a bit of added bonus coverage, many have wondered if the price increase on traditional spinning drives would affect the pricing of SSDs.  Well, it looks like did at least for a 10 day span.

ssd_priceindex.png

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Over the last year prices for solid state drives have dropped by 23% on the top 50 devices available with one minor hiccup.  In a 10 day period between the end of October and early November, there was an SSD price increase that isn't explainable by any kind of inventory changes or supply line changes.  This was likely due to the HDD shortage and vendors looking to maximize profits when consumers didn't have access to the low cost hard drives they were used to.  But because the price increase lasted such a short time I think we can clearly see that customers didn't fall for the ploy and the hiccup was quickly self-corrected.

Even though we have been monitoring prices on our own since the Thailand disaster first occurred, it is great to get some hard data to put alongside our presumptions.  While there is tons of bad news still to digest for at least the first two quarters of 2012, the information provided by Dynamite Data provides some hope that the worst is behind us.  If you are interested in more analysis of this data and you will be at CES in January, you should stop by the Storage Visions conference where there will be a short talk on the topic. 

Podcast #182 - Intel Core i7-3930K, AMD 7000 Series rumors, a new low price SSD from OCZ and more!

Subject: Editorial | December 15, 2011 - 01:57 PM |
Tagged: ssd, podcast, ocz, nvidia, macbook pro, Intel, hdd, gigabyte, dell, apple, amd

PC Perspective Podcast #182 - 12/15/2011

Join us this week as we talk about the Intel Core i7-3930K, AMD 7000 Series rumors, a new low price SSD from OCZ and more!

You can subscribe to us through iTunes and you can still access it directly through the RSS page HERE.

The URL for the podcast is: http://pcper.com/podcast - Share with your friends!

  • iTunes - Subscribe to the podcast directly through the iTunes Store
  • RSS - Subscribe through your regular RSS reader
  • MP3 - Direct download link to the MP3 file

Hosts: Josh Walrath, Jeremy Hellstrom, and Allyn Malvantano

This Podcast is brought to you by MSI Computer, and their all new Sandy Bridge Motherboards!

Program length: 1:15:55

Program Schedule:

  1. 0:00:32 Introduction
  2. 1-888-38-PCPER or podcast@pcper.com
  3. http://pcper.com/podcast
  4. http://twitter.com/ryanshrout and http://twitter.com/pcper
  5. 0:02:54 Dell Inspiron 14z Notebook Review: A Portable Workhorse
  6. 0:03:57 Gigabyte E350N-USB3 Fusion Mini ITX Motherboard Review
  7. 0:08:12 Video Perspective: Antec Eleven Hundred Case Review
  8. 0:12:20 Intel Core i7-3930K Sandy Bridge-E Processor
  9. 0:23:27 This Podcast is brought to you by MSI Computer, and their all new Sandy Bridge Motherboards!
  10. 0:24:15 Some Details About AMD’s 7000 Series Graphics Cards Leak To Internet
  11. 0:27:00 Bad for reviewers, great for gamers ... AMD will allow non-reference Tahiti graphics cards
  12. 0:32:10 How much of PCI-E 3.0 is just marketing speak right now
  13. 0:36:05 OCZ Technology Petrol SATA 6Gbps SSDs Reduce SSD Deployment Costs by Thirty Percent (Hynix flash)
  14. 0:42:30 Two Catalysts from AMD; 11.12 and a highly recommended preview version of 12.1
  15. 0:45:05 Intel Scales Back Sales Outlook Due To Hard Drive Shortage
  16. 0:50:10 Apple May Bring High Pixel Density Displays To MacBook Pro Notebooks
  17. 0:57:56 Voicemail - 3d gaming, special graphics card, what games, etc?
  18. 1:03:54 Voicemail - SSDs - SF drive and Gaming
  19. 1:07:12 Hardware / Software Pick of the Week
    1. Ryan: 4GB to 8GB of memory - do it!!
    2. Jeremy: How have I never thought of this? Also, the 3930K since it proved to be about 95%+ of the performance for about 60% of the cost ... if you can find it
    1. Josh: You Monster!
    2. Allyn: Cheap SSD's for the holidays, do it!
  20. 1-888-38-PCPER or podcast@pcper.com
  21. http://pcper.com/podcast   
  22. http://twitter.com/ryanshrout and http://twitter.com/pcper
  23. Closing

 

Source:

Are you part of the 5% ... that won't be able to find a hard drive?

Subject: General Tech | December 13, 2011 - 12:40 PM |
Tagged: hdd, shortage, thailand

DigiTimes has been doing some good old fashioned investigative journalism and has come up with some (almost) good news about HDD shortages.  With the news coming out of Western Digital that they are set to resume HDD manufacturing sooner than was originally projected, along with the factories that produce parts for other hard drive manufacturers, DigiTimes predicts a 5% supply gap by Q2 2012.  This significant improvement will come too late for the Christmas season, which is why companies like Intel are lowering their economic outlook for this and the next quarter.  With a shortage of hard drives to put in machines comes a lowered demand for all other system components, the exception being machines utilizing only SSDs which do not make up a significant portion of the market.  By the third quarter of 2012, DigiTimes predicts a return to normalcy in the global supply of hard drives.  By that point we should also have a good idea how hard motherboard, CPU, GPU and other companies have been affected by the flooding in Thailand and subsequent shortages.

digitimes_HDD.png

"Thailand's floods in early October, have created strong impact toward the hard disk drive (HDD) supply chain, causing many PC brand vendors to miss business opportunities in the fourth quarter, the traditional peak season, but Digitimes Research senior analyst Joanne Chien believes hard drive capacity will see an obvious improvement starting February 2012 after experiencing the most serious shortages in December 2011 and January 2012.

Because brand vendors are already out of HDD inventory, shipment volumes of devices with HDDs in the first quarter of 2012 will remain at a similar level as in the fourth quarter of 2011, with the HDD supply gap to remain at about four million units. In the fourth quarter, brand vendors together have a total inventory volume of about 20 million units.

Benefiting from their crisis management capabilities, Western Digital and affected upstream HDD component makers are expected to restore 70% of their total capacity by March 2012, three months earlier than their original forecast."

Here is some more Tech News from around the web:

Tech Talk

 

Source: DigiTimes

Third time is the charm? Seagate releases the third generation of their hybrid drive

Subject: Storage | November 29, 2011 - 06:19 PM |
Tagged: hybrid, momentus XT, hdd, ssd, Seagate, sata 6Gbs

Over the past few years Seagate has been trying to perfect a way to get the best of both storage worlds by combining an SSD as a semi-permanent cache for a large platter based hard drive.  The new Seagate Momentus XT is the third generation of this series, a 750GB HDD with a 8GB SLC SSD available to cache frequently used files and are calling it FAST (Flash-Assisted Storage Technology).  Legit Reviews investigated their performance claims, after repeatedly using the drive to fill the cache as this drive will perform exactly like the platter based drive it is until that cache has moved frequently accessed or slow to load files into the flash memory.  It did seem to reduce boot times and program loading to almost SSD levels, though it does not effect infrequently used programs.  It was significantly less expensive than an SSD so if you tend to do similar tasks on your PC every day and need the large storage space this drive might just be for you.

LR_seagate-slide.jpg

"Overall, we'd certainly recommend the Momentus XT and frankly wouldn't go back to a plain old hard drive unless we were forced to. The expediency of boot and application load times are something that, once you get used to it, you can't seem to live without. Keep in mind that it may take two or three times for the Adaptive Memory Technology to decide that it should be cached and speed things up. On the down side, every operation is not SSD fast, especially if you're performing it for the first time..."

Here are some more Storage reviews from around the web:

Storage

 

Seagate Technology Provides Updated Financial Outlook

Subject: General Tech | November 29, 2011 - 12:23 PM |
Tagged: Seagate, hdd, earnings

It seems very interesting that Seagate is so upbeat about their earnings with the flooding in Thailand causing huge supply shortages of HDD world wide.  Last year at this time they were expecting 170 million units move, whereas this year is is 110-120 million units with demand outstripping supply.  That number does reflect some supply issues but perhaps not as bad as the issues faced by Western Digital and other manufacturers with a large presence in Thailand.  The profit being higher does show what happens when you have a product people want but cannot find; the price per unit quickly goes up and the business can still make a profit.  We can only hope that as supply returns to the chain that the price drops at the same speed it has risen.  We still do not have final word on Seagate's absorption of Samsung's HDD business, that will likely be in January.

CUPERTINO, Calif.--(BUSINESS WIRE)-- Seagate Technology plc (NASDAQ:STX) today updated its financial outlook for the December 2011 and March 2012 quarters.

The company continues to believe that, due to the industry impacts caused by the extensive flooding in Thailand, hard disk drive supply will be significantly constrained for several quarters. For the December 2011 quarter, the company believes the industry will ship between 110-120 million units.

The company believes the industry’s ability to manufacture and ship hard disks drives will gradually improve throughout calendar 2012. While this may alleviate some of the unit demand shortfall, it is expected that some companies will optimize unit shipments by manufacturing lower component count/lower capacity hard disk drives; thereby, only modestly offsetting the growing petabyte shortage. Because demand is estimated to significantly exceed supply during this time, pricing is expected to remain stable.

Financial Outlook
The company’s component and disk drive factories in Thailand have not been directly affected by the flood; however, the company’s ability to manufacture hard disk drives has been impacted due to external component supply constraints as first disclosed on October 12, 2011.

For the December 2011 quarter, the company now expects unit shipments of approximately 43 million units and revenue of approximately $2.8 billion. Gross margin as a percent of revenue is expected to be 150-300 basis points above the high-end of the company’s long-term, targeted gross margin range of 22-26%. Operating expenses (R&D and SG&A) are expected to be approximately $400 million. Expenses related to the acquisition of Samsung Electronics Co., Ltd’s (“Samsung”) hard disk drive business and any revenue or operating expenses of the acquired business following the closing date cannot be estimated at this time and are therefore excluded from this outlook. The company continues to expect to close the acquisition of Samsung’s hard disk drive business by the end of December 2011.

The company’s outlook for the March 2012 quarter assumes requisite regulatory approvals are received and the Samsung acquisition closes in December of 2011. The company also continues to work with its external suppliers to restore the component supply chain, and now expects that in the March quarter it will be capable of shipping a mix of products in terms of capacity per drive and expected market similar to pre-flood levels. Currently, for the March 2012 quarter, the company expects unit shipments to increase sequentially. Revenue is expected to be at least $3.75 billion and gross margin as a percent of revenue is expected to be at least 300 basis points above the aforementioned targeted range of 22-26%. The outlook for the March 2012 quarter excludes certain costs related to the integration of the acquired Samsung hard disk drive operations which cannot be estimated at this time.

The financial outlook provided today does not include the arbitration award previously disclosed on November 21, 2011.

Western Digital launches Sentinel Series of NAS devices, bringing enterprise features to the small business.

Subject: Storage | November 15, 2011 - 08:08 AM |
Tagged: western digital, wdc, WD, NAS, home, hdd

 Today Western Digital launches their Sentinel line of NAS devices. These Intel Atom powered devices can store up to 12TB when equipped with 3TB drives. The OS of choice is Windows Storage Server 2008 R2 Essentials, which supports RAID levels 1 and 5, as well as built in backup routines and the ability to configure the devices dual Gigabit ports with Adaptive Fault Tolerance (redundancy).

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Also available are some interesting yet agressive service options via Western Digital's Guardian Services, which include options for next-day warranty replacement of defective or failed parts, as well as the option to extend the warranty period from three to five years.

Pricing starts at $949.99 for 4TB (3 bay) and $1449.99 for 8TB (4 bay).

Following is the press release, and even more detail and pics should be available from WD themselves once their product link page goes live.

WD® DELIVERS NEW LINE OF NETWORK STORAGE SERVERS FOR SMALL TO MEDIUM BUSINESSES

WD Sentinel™ DX4000 Small Office Storage Server Combines Centralized Storage, Backup-and-Restore Protection for 25 Network Devices and Allows SMBs to Connect, Protect, and Collaborate

IRVINE, Calif. – Nov. 15, 2011 – Western Digital® (NYSE: WDC), the world’s leader in digital storage solutions, is introducing WD Sentinel™ DX4000 (photo), a complete network storage solution designed specifically to meet the demands of today's small-to-medium sized businesses (SMBs). WD Sentinel DX4000 includes the Windows® Storage Server 2008 R2 Essentials operating system software and the Intel® D525 Dual Core Atom CPU. The WD Sentinel DX4000 is centralized shared storage and automatic server-based backup and restore for up to 25 devices (PC and Mac®) in the network. It offers complete data protection with built-in hardware and software redundancy for all of the connected devices in the network. With capacities including 4 TB and 8 TB, WD Sentinel DX4000 lets small business owners expand small office server storage capacity as their business and storage demands grow. In addition, the WD Sentinel DX4000 small office storage server acts as the “on-premise cloud storage" for the SMB.

“The WD Sentinel small office storage server is the ideal storage, backup, and secure remote access solution for any SMB,” said Thomas Gallivan, vice president of marketing for WD’s SMB Solutions Group.

WD® Introduces New Line of Network Storage Servers for Small to Medium Businesses

“The ability to have centralized storage that is both on-premise and offers secure remote access provides a small business owner and employees the flexibility needed for today’s mobile lifestyle. WD is providing small business owners with a hands-free solution that offers complete data protection and unparalleled peace-of-mind.”

“The requirement for collaboration across multiple devices and locations necessitates the need for a centralized storage solution in today’s SMB environment”, said David Tuhy, General Manager, Intel Data Center and Connected Systems Group. “Intel is working closely with the industry and companies like Western Digital to provide the technology that is at the core of these storage solutions and provide SMBs a platform to manage, organize and secure their data to ensure business continuity.”

“Built on Windows Storage Server, WD Sentinel gives small business customers the storage and file services capabilities of Windows Server, as well as a solution aimed specifically at the SMB segment,” said Thomas Pfenning, general manager, Storage, at Microsoft. “We are pleased to see WD Sentinel serve our mutual customers.”

Whether they’re personal or professional, digital content and important files are invaluable and often irreplaceable if lost or compromised. WD Sentinel small office storage server provides several ways for businesses to protect their information without user intervention. WD Sentinel comes preconfigured with enterprise-class drives, RAID storage protection, built-in server based backup and recovery software, redundant networking ports and a redundant power option. In addition, WD Sentinel offers users the ability to connect to a “public cloud” storage provider, which offers small businesses an economical and integrated disaster recovery solution against earthquake, theft and fire or water damage.

Software included with WD Sentinel provides business owners and their employees the freedom and flexibility to remotely access files and share files with external employees, independent consultants and satellite offices anywhere in the world.

Five Levels of Data Protection

WD Sentinel DX4000 provides five levels of data protection for every device on the small office network and is supported by WD Guardian Services.

WD® Introduces New Line of Network Storage Servers for Small to Medium Businesses

1. The Drives Inside: Pre-configured with WD’s award-winning enterprise-class drives for durability and reliability.

2. RAID: Featuring levels 1 and 5 for data protection and speed.

3. Daily Backup: Automatic backup and recovery software provides daily full system back ups for up to 25 devices on your network. Simply set it and forget it.

4. Redundant Network Connectivity: Dual Gigabit Ethernet configured in Adaptive Fault Tolerance (AFT) automatically switches to second network port in the event of a network failure.

5. Optional Disaster Recovery Protection: Connect to the small business cloud provided by optional disaster recovery software and store your data offsite for disaster recovery.

WD Sentinel is certified to be compatible with a variety of Operating Systems (OS) including Windows XP, Windows Vista®, and Windows 7. In addition, WD Sentinel is compatible with Mac OS X® Leopard® and Snow Leopard® for file sharing among Windows, Mac and Unix/Linux operating systems and allows businesses to share files with clients, consultants, and inter-office personnel regardless of the OS used.

WD Guardian™Services for Small Business

WD Sentinel DX4000 is backed by WD’s world-class customer service and support. All WD Sentinel small business customers will receive free tech support for 30 days from the time of the first call. WD Sentinel customers may wish to upgrade their service plan to one of three options:

1. WD Guardian Express: Offers next-day parts replacement service including shipping and handling costs.

2. WD Guardian Pro: Offers a one year support agreement with WD service, express parts replacement and priority access to technical support.

3. Guardian Extended Care: Service that extends the product warranty from the standard three year warranty to five years.

Good news storage fans, the motors are revving up again

Subject: General Tech, Storage | November 8, 2011 - 10:54 AM |
Tagged: thailand, nidec, hdd

While Western Digital is still nowhere near the point where they can think about cleaning up their factory and getting started on the road to recovery there is good news for other HDD manufacturers from Thailand.  Nidec, a company which provides about 75% of the global supply of motors for HDDs, also has quite a bit of their manufacturing capacity in Thailand, in the neighbourhood of 62% according to DigiTimes.  Two of their Thailand based plants are back in business and they are redistributing quite a bit of workload to their Philippines manufacturing plants, in the hopes of increasing the supply of these critical motors.

Seagate, Fujitsu and other major HDD manufacturers desperately need these parts in order to help meet the demand from the market before we can even think to see prices begin to return to previous levels.  This is not going to be a quick return since Western Digital and its subsidiaries accounted for about 50% of the HDD market and they have much more work to do in order to repair their factories than Nidec.

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"Nidec currently has 10 production bases in Thailand with eight of them have been damaged by the floods. As water started to recede, Nidec announced its Rangsit plants, which stopped operation on October 13, already resumed production on October 25, while Ayutthaya plants also started operating normally on November 4.

Nidec's two plants in Philippine will also see their monthly capacity rise from 15 million units originally to 25 million units with capacity in China plants also increase from 10 million units to 15 million units. However, the total capacity in the fourth quarter will still drop close to 30% from 140 million units in the third."

Here is some more Tech News from around the web:

Tech Talk

 

Source: DigiTimes

Of hens teeth and hard drives

Subject: General Tech | November 4, 2011 - 11:42 AM |
Tagged: hdd, thailand, flooding, western digital, Samsung

According to SemiAccurate both Western Digital and Samsung will cease shipping hard drives to suppliers and retailers because of the devastating flooding in Thailand.  Both companies need to find a new source for head stacks and drive motors and Western Digital will need temporary manufacturing facilities while they wait for the flood waters to recede and repairs to start on their damaged factory.  Expect to see this have large effects on the industry as major suppliers like Dell, Acer, ASUS and HP do not tend to keep large supplies of hard drives lying around in storage which means that only the models with SSDs inside will be able to be manufactured and shipped out.  That reduction in production in turn will effect motherboard, GPU and CPU manufacturers as the demand for their products drop.  While you will not convince the 11,000+ Thai people who have been displaced by the flooding that the fate of Western Digital's factory is the biggest impact of this disaster, for many in the western world it is the only reason they are paying attention to this story.

WD.jpg

"According to sources that we have spoken with in the Taiwanese market both Samsung and Western Digital have decided to suspend shipments of disk drives to PC makers in Taiwan due to a parts shortage."

Here is some more Tech News from around the web:

Tech Talk

Source: SemiAccurate

A*STAR is making a name for themselves in storage

Subject: General Tech | November 2, 2011 - 01:02 PM |
Tagged: A*STAR, hdd, STT-MRAM

A*STAR Data Storage Institute was in the news two weeks ago with the results of their experiment of doping hard drive storage medium with salt allows a 6 fold increase in storage density thanks to much tighter sputtering of magnetic grains on the platter.  They are back in the news with another development in a different kind of storage medium altogether.  With Micron partnering in the development they are working on a new type of resistive RAM, which will bring speeds better than you can get with flash and in a non-volatile form.  The technology is referred to as spin transfer torque magnetic random access memory or STT-MRAM.  Drop by The Register for a look at what they are up to, as well as what the competition is working on to bring us the next generation of NAND.

STTRAM.png

"NAND suppliers and technology developers are anticipating this by developing follow-on technologies centred around the idea of non-volatile, resistive RAM (RRAM), which is faster to access than flash and has a longer working life. There are a variety of ways of altering the resistance of a memory cell and Micron is entering into a joint research and development agreement with Singapore's A*STAR Data Storage Institute (DSI) to develop spin transfer torque magnetic random access memory or STT-MRAM."

Here is some more Tech News from around the web:

Tech Talk

 

Source: The Register

Hard Drive Prices Spike on Thailand Flooding

Subject: General Tech, Storage | October 27, 2011 - 04:00 PM |
Tagged: wdc, shortage, Seagate, Samsung, hitachi, hdd, Hard Drive

Chances are good you have heard about the recent flooding in Thailand - as Yahoo puts it: "The country's worst flooding in half a century, caused in part by unusually heavy monsoon rain, has killed 373 people since mid-July and disrupted the lives of nearly 2.5 million."  Obviously this is a horrific disaster and we feel for the people affected by it.

But there is a tech angle to the story that has been showing up in many of our discussions as late and is the impact this disaster has had on the production of spindle-based hard drives.  Looking for a 2TB hard drive today on Newegg.com this is what I found:

price01.png

Prices for hard drives have sky rocketed in the last week or so due to the pending shortage of them across the world.  Many of the top manufacturers have facilities based in Thailand for production as well as partners that are responsible for supplying companies like Western Digital, Seagate, Samsung and Hitachi with the parts they need to produce platter-based drives. 

While we used to talk about finding 2TB hard drives in the $89 price range, the best prices we could find on comparable units today start at $129; and this is for the slower units.  Western Digital Caviar Black drives are starting at unit prices of $229 now!

price02.png

Pricing graph from Pricegrabber.com for Western Digital Caviar Black 2TB

If you are careful and shop around, you can still find drives like this for the $149 price point at sellers like Amazon are bit slower to update their prices.  (Scratch that, after publication this was already at $199!)  But don't just blindly purchase drives at this point - do your research!

WD drives aren't the only ones affected.  When doing a search for a Seagate 2TB drive, these were our results:

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When asked for comment, a representative of one of the affected manufacturers expressed concern for the people of Thailand first, but when pressed, said:

"The entire hard drive business is affected. Two of our factories are inundated with water, which supports 60% of our output. But a ton of suppliers that the entire industry uses are also flooded so we are all impacted."

While looking over at WD's press center we found this comment from John Coyne, President and CEO:

In mid-October, to protect our employees and our equipment and facilities, we temporarily suspended production at our two factories in Thailand, which have been inundated by floodwater. In addition, many of our component suppliers have been impacted, leaving material for hard drive production considerably constrained. We are working with suppliers to assess the extent of their impact and help devise short- and long-term solutions. This is a complex and dynamic challenge that will require extensive rebuilding for the Thai people and government, and present unprecedented obstacles to the hard drive industry for multiple quarters.

Obviously with a majority of the facilities affected we can only expect these prices hikes to increase and to linger.  That fact that Coyne specifically notes "multiple quarters" indicates that users likely won't see a return to the pricing we were used to until at least mid-2012.  With competition from solid-state drives heating up, this could be bad timing for companies dependent on spindle drives as the driving revenue source: comparing a $300 SSD to a $90 standard drive is a much different decision than that same $300 SSD and a $240 standard drive of high capacity. 

According to this report from Xbit labs, the industry has "two to four weeks" of hard drive inventory available.  The author claims that this points to the situation not being so dire, but with the WD's CEO stating the effects will be seen for "multiple quarters", I am guessing we will see a major buy-up of inventory from system builders like HP and Dell that will cause drive shortages much more quickly than anticipated.  

PC Perspective will keep tracking the effects on driving pricing and if any player in the business has other input they want to offer us.  Stay tuned!