Hard Drive Prices Spike on Thailand Flooding

Subject: General Tech, Storage | October 27, 2011 - 01:00 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:

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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!

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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!

Seagate Releases First 4TB GoFlex External Hard Drive

Subject: Storage | September 8, 2011 - 08:01 PM |
Tagged: Seagate, Hard Drive, goflex, 4TB

Seagate has broken the capacity ceiling for single disk hard drives with their new GoFlex external hard drive reaching a beefy 4 TB of storage capacity. No specific details on performance have been released; however, Seagate has stated that the new four terabyte drive will be housed in their new industrial design enclosure and will carry an MSRP of $249.99.

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The new enclosure is a glossy black design that the company claims delivers a smaller footprint then their previous models. The front face holds a capacity meter that shows the used capacity in 25% increments. Connectivity options on the rear of the drive include FireWire 800 and USB 2.0. Users are also able to pair the 4TB GoFlex drive with a GoFlex adapter that enables USB 3.0 transfer speeds.

Currently, the 4TB hard drive is available for purchase from Seagate’s website, and will be available for purchase from online retailers within the month.  More photos of the drive are available here.  Personally, I had been holding off on the terabyte craze until a drive with at least four terabytes came out; however, storage needs required me to jump on a 2TB drive a bit earlier than I expected. Are you using a TB+ hard drive, or are you holding off for a certain capacity before jumping into the terabyte era?

Source: Seagate

Podcast #151 - HD 6670 and 6570, Seagate and Samsung deal, 20nm Flash memory, Viewer questions and more!

Subject: Editorial, General Tech | April 21, 2011 - 12:08 PM |
Tagged: Seagate, Samsung, podcast, HD6670, HD6570

PC Perspective Podcast #151 - 4/21/2011

This week we talk about AMD's new HD 6670 and 6570, the Seagate and Samsung deal, 20nm Flash memory, Viewer questions 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: Ryan Shrout, Jeremy Hellstrom, Josh Walrath, and Allyn Malventano

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

Program length: 1:12:48

Program Schedule:

Source:

Seagate and Samsung, the defragmentation of the storage market continues

Subject: General Tech | April 19, 2011 - 08:51 AM |
Tagged: Seagate, Samsung, sale, partnership, hdd, 1 billion

 

While it is not a true merger or sale, it seems that the operations side of Samsung's HDD branch is being pruned off and sold to Seagate for over $1billion of cash and shares.  The reports inidicate this will be more of a partnership, with Samsung continuing to develop technologies for HDD and retaining full ownership of its flash based storage assets.  Drop by The Tech Report for more.

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"Seagate and Samsung have announced a "broad strategic alignment," as part of which Seagate will take over Samsung's hard-drive operations in exchange for a cool $1.375 billion (paid half in cash, half in stock). The deal also involves a NAND flash memory supply agreement as well as "expanded cooperation" on enterprise storage."

Here is some more Tech News from around the web:

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