Four months after devastating flooding crippled hard disk drive manufacturers' Thailand operations, top companies continue to struggle. According to new research from IHS, global HDD shipments will falter until this fall, leaving consumers to face inflated costs for dwindling supplies.
HDD production will slowly increase through 2012, with the minor 2 percent year-over-year growth expected during the third quarter signaling a true recovery, noted IHS. The following quarter, that figure will blow up to 49 percent. Shipments will grow 13 percent this quarter to help offset last quarter's 29 percent drop-off.
"The recovery of global HDD manufacturing has begun and will continue during each quarter of 2012," said Fang Zhang, IHS storage analyst. "However, the recovery will be prolonged for at least two more quarters, as supply constraints keep unit shipments from climbing on an annual basis until third quarter."
Zhang added that until that same quarter, HDD prices will stay artificially bloated.
"Prices will remain high for a number of reasons, including the higher costs associated with the relocation of production, as well as higher component costs because of flooding impacts among component makers," said Zhang. "Furthermore, PC brands have signed annual contacts with HDD makers that have locked them into elevated pricing deals for the rest of the year."
Zhang and co. believe that while the average selling price for HDDs should drop by 3 and 9 percent over the year's opening two quarters, costs will remain higher than what they were prior to the flood. Last quarter, the research group pegged the ASP for HDDs at 28 percent higher.
Industry-leading companies Western Digital and Seagate both saw their Thailand operations severely hindered by the flooding. The former, however, was hurt far worse thanks to its factories in the region accounting for the bulk of its global shipments. The damage was enough to cost the company its top spot, leaving formerly second place Seagate as the new HDD market leader. (via IHS)
