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Thailand Floods To Lead To 30 Percent Shortfall Of Hard Drive Supply

By Joseph F. Kovar
November 04, 2011    5:58 PM ET

Page 2 of 2

The expected shortage of hard drives was a big topic of conversation among VARs at D&H Distributing's fall conference in Hershey, Pa., said Dan Schwab, co-president of the Harrisburg, Pa.-based distributor.

"It's going to have a ripple effect from mass appliances to consumer electronics to notebooks. A lot of vendors have already modified prices, changed delivery expectations or expressed concern," Schwab said.

Some vendors said constraints could reach 90 to 180 days for availability for some niche drive products.

"Products will be flowing but there will be some constraints. Some vendors are slightly better off than others based on size and their pipeline but anything that takes a hard drive will be effected," Schwab said.

D&H expects to see demand in competing drive technology, such as SSD, pick up as vendors and customers look to avoid constraints in hard drives.

"That will drive new opportunities. It'll be a dynamic market for the next few months," he said.

Spokespeople from Seagate and Western Digital were unable to provide updates beyond their companies' most recent SEC filings.

Scott Campbell contributed to this article.



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