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HDD Shortages to Spill Over into Q1 2012

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Considering operations are disrupted at over a dozen hard disk drive (HDD) factories thanks to flooding in Thailand, PC manufacturers should begin preparing for significant supply shortages according to market research firm IDC. Worldwide HDD shipments could suffer almost a 20% decline starting in the middle of this month that could extend far into the first quarter of 2012 according to the firm. Thailand accounts for somewhere between 40% and 45% of HDD production in the entire world. As of early November, almost half of Thailand's production was directly affected by flooding. Even though production at some factories was halted as a result of flooding, the industry also faces work stoppages due to poor access and power outages. The full extent of the damage to the industry will not be known until all the floodwaters recede, even though it is already clear that there will be supply shortages into the first quarter of 2012 according to IDC. Research Vice President at IDC John Rydnin