<title>Hard disk drive price drop boosts PC manufacturers | Materials Risk</title>

Hard disk drive price drop boosts computer manufacturers

Now over a year since flooding in Thailand resulted in the shutdown of at least half of the country’s hard disk drive (HDD) capacity, one quarter of global capacity HDD prices are only now beginning to approach their pre-flood level.

HDD drive chart Nov 2012

HDD prices have almost halved in value from their late 2011 highs and although back towards the early 2011 levels, prices are still around 20%-25%% above prices immediately preceding the flood.

Earlier in 2012 there was concern that prices would remain elevated after two mergers resulted in two companies holding 85% of the market.

Recent data from IHS iSuppli indicate that the HDD market for PC’s has fully recovered with output expected to hit an all-time high of just over half a billion units in 2012.

The price fall will be a boon to many PC manufacturers who didn’t hedge their position with long-term contracts. In the wake of the floods many PC manufacturers signed long-term agreements with HDD makers, locking in pricing about 20% higher than pre-flood levels.

See June report here.

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Peter Sainsbury

Materials Risk provides commodity market insights across your supply chain by highlighting emerging risks and opportunities and providing advice on commodity buying and managing risk. All views expressed on this website are those of Materials Risk only. See our About page and terms and conditions for more details. Materials Risk was founded by Peter Sainsbury who you can follow on Google+ and Quora

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