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Disk Drive Supplies Threatened by Thai Floods

According to the AP, quoting IDC, plants making a third of the country’s output have been shut, forcing prices up

PC production could be hurt because of the flooding in Thailand where a quarter of the world's disk drives are made.

According to the AP, quoting IDC, plants making a third of the country's output have been shut, forcing prices up. Western Digital and Toshiba have reportedly suspended their operations in Thailand. Seagate's factories are operational but are said to be having trouble getting components.

Apple CEO Tim Cook said Tuesday during a conference call with Wall Street that Macs could be impacted and he was "virtually certain there will be an overall industry shortage of disk drives." Gartner is expecting disruptions through March. Intel thinks alternate supplies and inventory levels will tide the industry over.

When Western Digital reported its results Wednesday it guided to shipments this quarter of 22 million-26 million. Goldman Sachs said the projection "roughly implies a 50%-plus cut to the company's normal run-rate. With Western Digital normally making up about a third of industry unit shipments, this could suggest a mid- to high-teens percent cut to the hard drive TAM." Depending on how bad things really are the constraints could be felt in verticals outside of PCs, Goldman said.

Seagate is due to report after the markets close Thursday.

More Stories By Maureen O'Gara

Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025. Twitter: @MaureenOGara

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