Feeds

HP also jacks up disk prices in Thai flood wake

It beat EMC to the hike

Intelligent flash storage arrays

We thought EMC was the first major enterprise supplier to raise disk drive prices after the Thailand floods. Not so. HP sent out a letter - pictured here - last month saying it was being forced to increase prices as a result of the hard drive shortage caused by the deadly floods in Thailand. Many of the country's disk assembling factories were inundated or destroyed by the rising waters, forcing up prices as the number of drives shipped in the last quarter fell well below expected targets.

HP disk price rise letter

Here are the key extracts from the letter by Tom Joyce, VP for marketing, strategy and operations in HP Storage:

According to IDC, Thailand accounted for 40-45% of worldwide HDD production during the first half of 2011. Many factories have been flooded, and in others production has been impacted due to power outages and work stoppages. Approximately half of Thailand’s HDD production capacity has been impacted by the flooding.

The magnitude and duration of the disruption will not be clear until the floodwaters subside, but the industry is already experiencing severe shortages of certain HDD components. In particular, large-capacity SAS and SATA drives are in short supply. HP is working closely with our suppliers to maximize our access to these HDDs. We have a significant advantage in this environment due to our world-class supply chain; however, worldwide output will clearly be much lower than worldwide demand.

This reduction in available supply is causing immediate and significant increases in the prices that HP and all other vendors pay for hard disk drives. Component prices have already increased approximately 20%. In this context HP will be forced to increase the prices that we charge for certain disk drives.

We are hopeful that this crisis will come to an end soon. We are doing everything in our power to gain access to sufficient HDD supply so that we can help you fulfill your requirements. We are also prepared to engage with you to explore alternate solutions where appropriate.

Given that both HP and EMC are talking about raising prices for disk drives we can assume that all the major server and storage array vendors will do the same. ®

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
Scrapping the Human Rights Act: What about privacy and freedom of expression?
Justice minister's attack to destroy ability to challenge state
WHY did Sunday Mirror stoop to slurping selfies for smut sting?
Tabloid splashes, MP resigns - but there's a BIG copyright issue here
Google hits back at 'Dear Rupert' over search dominance claims
Choc Factory sniffs: 'We're not pirate-lovers - also, you publish The Sun'
EU to accuse Ireland of giving Apple an overly peachy tax deal – report
Probe expected to say single-digit rate was unlawful
Inequality increasing? BOLLOCKS! You heard me: 'Screw the 1%'
There's morality and then there's economics ...
While you queued for an iPhone 6, Apple's Cook sold shares worth $35m
Right before the stock took a 3.8% dive amid bent and broken mobe drama
4chan outraged by Emma Watson nudie photo leak SCAM
In the immortal words of Shaggy, it wasn't me us ... amirite?
prev story

Whitepapers

A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.