As predicted, the price of hard drives has soared a staggering 180 percent, in some cases, due to widespread, long-term flooding in Thailand. According to computer engineer Marc Bevand, who has observed the soaring price tags, 1TB drives have experienced the most notable jump.
The literal breaking point, writes Bevand on his blog, Zorinaq, came after the flood waters seeped into the Bang Pa-In Industrial Park, the Navanakorn Industrial Park and the Bangkadi Industrial Park. These three industrial parks, located in Pathum Thani province near Bangkok, house all the manufacturing facilities in Thailand for both Western Digital and Toshiba. And, according to Bevand, “all of them have been rendered inoperable,” something Western Digital had feared would happen.
According to some estimates, roughly 60 percent of Western Digital’s total hard drive production takes place in Thailand, as does 50 percent of Toshiba’s. The Western Digital factory in the Bang Pa-In industrial park produced 25 percent of all the world’s “sliders,” which are a vital component of traditional hard drives. As The New York Times reports, workers attempted to salvage what they could of the factory’s inventory. But much was lost at the production plant as, “[t]he ground floor resembled an aquarium and the loading bays were home to jumping fish.”
The tenacious floodwaters engulfing Thailand are the worst the country has seen in 50 years. So far, more than 1,000 factories across the country have had to shut down due to the water.
The flood waters, which have displaced more than 120,000 people, are not expected to recede until mid-December, and disruptions to the world’s hard drive production could last well into next year.
Image credits: Vitaly Korovin /Shutterstock.com
Weeee!! Isn’t a global economy fun kids!
This shit wouldn’t be happening if hard drives were still manufactured in the U.S. and other locales. The global mindset of putting all the eggs in a single basket is a fucked up philosophy and this is why it’s doomed to failure.
If every economy is suffering who’s going to pull them out of a tailspin correct answer (No One). It’s a nice plan for the top .001 % on the earning side (oh wait it’s not). Because I’m not blowing $200 on a 1TB drive.
Another reason why not to get a external hard drive under the tree this year. Kids, teens, adults will be very disappointed.
Sorry, 1 TB drives currently going for $69 so not sure where the price rise is. did you actually have some evidence of this?
Prices are rising. . . I TB drives at OWC (http://www.macsales.com) nearly 50% more than even a few weeks ago. Some WD hdd are out of stock already. Evidence exist.
No, actually every $50-$60 1 TB hard drive on Newegg has jumped to $150+.. I can’t upgrade my system anymore.
Just another excuse to price gouge… Squeeze every penny out of the consumers as possible.
Yes, let’s all feel awful about the price gouging and NOT the flood victims. :/
The article is little about the flood victims. It’s about the technology, and prices. If you care to bleed your heart somewhere, go bleed it on some article about the people who have been displaced, lost or died. I’ll reserve my sorrow for those threads.
This is true, but the reason the prices have skyrocketed is because of said flood. It not only damages THEIR economy but ours as well. It’s not a conspiracy to take every nickle you have. Maybe a little compassion here or there could help you realize that you and I have it pretty good, we are only bitching about the price of the TBs, not the loss of houses, loved ones or other such things.
Besides, in this economy no one needs excuses to price gouge, they just do it. Using a flood as an excuse would be a pretty low thing to do. Assuming they are using it as an excuse is even lower. But hey, to each their own.
I’m sorry, I just went through all that with Hurricane Irene, and TS Lee. I didn’t see Singapore moaning for anyone over here.
You’re right, no one needs an excuse to price gouge in this country, but it’s a clever mask to disguise what is actually going on. Look at oil for example. Someone sneezes in the middle east, or any other oil producing country, and the price of oil sky rockets.
I gave all of my compassion with the Japanese/Haiti Earthquakes. I’ve come to realize that crap happens in this life. Does it suck, yep. Can I do anything to stop it, nope. Do I feel bad for them, yep. But the bottom line is, corporations will use this as an excuse to increase their profit margins. Corporations are very low life entities. They care even less about human suffering than I would assume you think I do. (Even though I have saved plenty of lives in my 30 years of existence). To them, it’s all about the bottom line.
Sorry, I meant Thailand, not Singapore.
Prices go up, floods come, earthquakes happen, oil prices skyrocket, it’s how life goes. Whining and complaining about how it’s a conspiracy to raise prices is just ridiculous though. There are so many more important things to give your voice to than being upset because the T1 you should have bought 6 months ago is now more expensive due to uncontrollable events in life.
If the price is that big of a deal then just don’t buy the item. It’s that simple.
Firstly, I wasn’t complaining about some grand conspiracy. I was merely stating an obvious fact. Global trade is impacted by global situations, and usually at an exaggerated level. That’s pretty well known. So what if I feel that it’s more of an excuse for them to increase the price 180%. If you don’t feel that way, that’s fine. But I do. Secondly, you started this whole conversation by acting as if I didn’t care about the people over there. Then you went on to say how I am complaining about some conspiracy. Now you’re judging my actions based on my comments. You’re all over the place. I feel as if you are arguing with me just for the sake of arguing. Some people can’t afford to “not buy them”. It’s called business. And when you’re pumping out about 10 TB of data every month, it doesn’t make sense to not buy them. Luckily, we have state contracts, and a supply to back us up. You’re solution would be perfect for the single income family who can’t afford to buy food due to the need to put gas in their car! But hey, they should have expected this, right? If the price is that big of a deal then just don’t buy the item… It’s just that simple.
gee, I wonder which avenue you’ll take with your next post…
You make very good points Jesterking. It was a very good read.
Reminds me of banks who use any and every excuse to cancel benefits, increase fees (wire transfers up) and (recently) debit card rewards cancelled.
Lots of people die. Everyone suffers. Some have a good life, some don’t. But Autumn, get over yourself it is pathetic. Nobody cares about the loss of life in Thailand except for you. Thousands of people die every day. waaaaaaah.
I wouldn’t say that no one cares. My point was that this article isn’t about the deaths on Thailand… It’s about the effects of it on prices of HDD’s. Now if this was about the people, and the death toll, than that would be another story altogether. But it wasn’t, and the fact that she tried to make me out to be some heartless troll totally was irrelevant to the article.
Actually this is a moot point. Have you checked the prices lately? 1TB $69.99. Think the author was making a general point but did not do any actual research to verify, and should have been clear he’s really ‘predicting’ a rise. He mentions someone else saw the rising prices, but how hard is it to check around for HD prices at internet retailers.? If he did he would see the prices are still cheap here in the us.That said, we should all feel for the thai people as they rebuild. BKK is an amazing city and they will have much work to do to get back to normal.
Well it seems that he wasn’t jumping the gun after all. The same 2 TB drive I purchased for $99 13 months ago is $165 now. Had gb/$ continuously increased along the trajectory it has for the past 20+ years, it would be conservative to estimate that HD prices now are at least double the amount they would have cost otherwise.
Also, this post about is about the substantial impact of the floods to the prices for an important good. A discussion of the impact to the region is important but doesn’t need to be mentioned here IMO. There is no need to make light of it either.