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Storage HDD Prices

Discussion in 'Hardware' started by Behemoth, 21 Oct 2011.

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  1. faugusztin

    faugusztin I *am* the guy with two left hands

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  2. Yeoo

    Yeoo Minimodder

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    Its likely that because its high tide season there maybe sea water contamination too.. also these machines wont just dry out and work again.. there gonna need complete stripping and assessing and probably replacing. the machines are worth a fortune they engineer on microscopic levels level

    And profit from it? they might make more on one drive... but everyone is losing out.

    Normally sell 1000 drives making a 10er is 10k...can only get 100 drives and make 30 pounds a drive is 3k. reality is whilst people maybe making 3x the margin there only making a 3rd of the profit a month which is a huge loss.

    Would you be able to live next month if you salary was cut to 30%?
     
  3. Another_level

    Another_level What's a Dremel?

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    Only one of WDC's plant in Thailand has been inundated by water, Yeoo. And I also understand WDC have moved some of their equipment to a safe area.

    I'm happy to revise my figures on the basis WDC produces 60% of their drives in Thailand and changes the previous mention figure from 10 to 15%. So if the world's production of HDDs is reduced by 15% then the doubling of HDD pricing as a result of flooding in Thailand is unacceptable.
     
    Last edited: 28 Oct 2011
  4. faugusztin

    faugusztin I *am* the guy with two left hands

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    Your "revised numbers" are very, very low. As you can see in the link above, production is down to 110 million from 180 million. That is a 40% reduction :
     
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  5. Yeoo

    Yeoo Minimodder

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    WD are not the only company affected.. if it was we would all just buy seagate. but Most of them have had flooding as well as Nidel who account for 70% of motor production for the HDD market.

    If you really think this is a profit feast you need to think further than the price of hdd last week and this week on Scan/Dabs etc..

    this is pretty serious and isn't a case of someones left the taps on in a factory somewhere and are going to be 100 drives short so lets all double our prices so we can have extra Xmas present money situation :/

    Lots of company's will be facing serious losses and potential closure. There are customers who run small company's that use HDD as a key component in their products. Got a guy for example who builds external RAIDs he doesn't know if he will be able to a. get enough stock b. sell the product at the new prices.Its much bigger than Jim cant get a 1TB upgrade for his custom build computer problem.

    But hey what do i know? not got daily updates from all the manufactures. this article sheds more light on the situation quite well. http://www.kctv5.com/story/15881236...mean-pricier-hard-drives?clienttype=printable
     
    Last edited: 28 Oct 2011
  6. Another_level

    Another_level What's a Dremel?

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    No- as I'm thinking in terms of world HDD production share and the fact that only one WD production plant has been flooded.

    Saying there is 40% reduction in Thailand does not translate to a 40% reduction worldwide.

    @Yeoo

    I've already mentioned NIDEC and when you start working out the figures on a world wide basis it seems the hysteria in HDD Thailand disaster isn't warranted at all. Especially as there have been a slowdown in the PC market which in turns slowed the demand for hard drives. With a number of PC makers reporting they have enough drives to last them this quarter then it's clear the suppliers are profiteering from people's ignorance.
     
    Last edited: 28 Oct 2011
  7. faugusztin

    faugusztin I *am* the guy with two left hands

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    I don't know how else to say. There should have been 180 million hard drives on the world produced this quarter. The prediction after flooding is 110 million hard drives. That is not a reduction in numbers of Western Digital hard drives, neither hard drives made in Thailand. It is a global number, which is going down by 40%.

    And sorry, but if the world wide production goes down to 60% of the previous quarter production, while the demand was equal to production numbers, then you now have 40% extra costumers to who you can't sell anything, as you can't get the hard drives in your stock. So what does the rules of economy say at this point - increase the price, so you will get higher profit from the fewer buyers, and at same time with this increased price you limit the demand, so you will find a new point where price, demand and supplly will be in balance.

    If you don't like the new prices, then don't buy hard drives. But you try to say that there is no huge drop in production, when exactly the opposite is the fact.

    And in the end - we will see what will you say in February when you still won't be able to buy new hard drives because the supply will be minimal.
     
  8. rob the bank

    rob the bank What's a Dremel?

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    Yep the bottom line is there is no drives coming in to the UK, or a tiny fraction of what there should be. The trade suppliers aren't low because they are selling fast they are low because they have none.
    As good as some of the % production hypotheses are, you can’t beat reality, just ask a disti.
    And Re Yeoo comment "Lots of company's will be facing serious losses and potential closure."
    We will loose £3000 just fulfilling our order book, pre price rises, and since the rise sales down 75%, so like I said before the ONLY people who will make money out of this are retail sellers who had stock before last Thursday.
    The trade price on Tuesday, Wednesday and Thursday of a 500gb HD was still higher then Scan. OCUK and Ebuyers retail price, so once they’re old stock goes price will increase again just to keep a normal margin.


    You think its bad now, wait till next week.....
     
  9. Yeoo

    Yeoo Minimodder

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    There is alot of other sub manufacturers of parts affected to.. TDK make some parts amongst others. its not just WD affected Toshiba too.. but its mainly the sun manufacturers who without even the likes of Seagate who are no flooded cant make drives.
     
  10. Nealieboyee

    Nealieboyee Packaging Master!

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    Seagate Barracuda 500gb is £108 on Scan! WT actual F!

    I bought one of those for £28 a few months ago!
     
  11. rob the bank

    rob the bank What's a Dremel?

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    Bargain :eeek:

    In January we will be saying "I remember the good old days when we could get a 500gb drive for just £100, those were the days"
     
    Last edited: 28 Oct 2011
  12. rob the bank

    rob the bank What's a Dremel?

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  13. faugusztin

    faugusztin I *am* the guy with two left hands

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    Yes, it is :).
     
  14. Shielder

    Shielder Live long & prosper!

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    Actually, I don't think it is. Don't you have to have had the item on sale at the higher price for 28 days in the previous 6 months before you can call it a sale item?

    Andy
     
  15. Ljs

    Ljs Modder

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    I believe this is indeed correct, but I cba to look for a link or source to prove it.
     
  16. Another_level

    Another_level What's a Dremel?

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  17. andrew8200m

    andrew8200m Modder

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  18. Arednel

    Arednel What's a Dremel?

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    Doesn't look like it's being quoted as on "sale" just that you can "save £5". It's all in the wording.
     
  19. Yeoo

    Yeoo Minimodder

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    Lol i work in distribution.. we dont make much ona drive. we make our money from quantity
     
  20. andrew8200m

    andrew8200m Modder

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    That hasnt stopped my buy price increasing from £X to £1.74X on one certain line and if you work for a main ditributor you will have access to these resell prices and rebate schemes the latter of which is now on stop.
     
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