NetApp The Latest To Increase Hard Drive Prices Due To Thailand Floods

NetApp Thursday night posted a notice on its Web site saying it is temporarily raising hard drive list prices by between 5 percent and 15 percent effective Feb. 6.

The move, according to NetApp, was necessary due to increased hard drive costs in the wake of severe floods in Thailand that wiped out nearly one-third of the world's hard drive manufacturing capacity.

NetApp's planned price increases follows similar moves by rivals EMC and Hewlett-Packard, both of which said in December that they plan to raise hard drive prices by up to 15 percent, according to multiple news reports, including Computer Business Review.

In its statement, NetApp said it empathizes with Thailand citizens who are trying to recover from the floods and that it is working with hard drive suppliers to secure the drives to meet its needs.

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"However, similar to other vendors we have seen a negative impact to our drive costs. While we initially absorbed the cost increases to protect our partners and customers, we are no longer able to do so. Effective February 6, 2012, we will be temporarily increasing HDD list prices 5 -15% over current pricing. We will continue to monitor the situation as it evolves and will provide updates as appropriate. Thank you for your continued partnership," NetApp said in the statement.

HP declined to offer specific information on its hard drive pricing plans. However, in a statement e-mailed to CRN, HP wrote, "Given the uncertainty associated with the situation, HP expects there to be continued headwinds related to the flooding in Thailand, affecting hard disk drive (HDD) supply and pricing by our suppliers, which may have a temporary impact on HP’s pricing of HDDs. HP is in constant communication with our employees, clients and suppliers to optimize business continuity and actively manage this dynamic situation."

EMC declined to comment on hard drive prices, citing the quiet period before it announces its next quarterly financial results on Jan. 24 . However, an EMC spokesperson did confirm that EMC early this quarter raised its hard drive list prices by 5 percent to 15 percent over last year's fourth-quarter prices.

Dell did not respond to inquiries about its hard drive pricing plans.