HDD and PC Shipments in 2012 Disrupted Due to Floods in Thailand

HDD and PC Shipments in 2012 Disrupted Due to Floods in Thailand

Due to the floods in Thailand, operations have been disrupted in more than a dozen hard disk drive (HDD) factories. According to the new International Data Corporation (IDC), this will have a direct impact on worldwide PC shipments for the first half of 2012.

As of early November 2011, nearly half of Thailand's HDD production was directly impacted by floodwaters. In addition to component and assembly facilities being inundated with water, the industry also faces work stoppages due to poor access and power outages. The full extent of the damage to the HDD industry will not be known until floodwaters recede, although it is apparent that there will be a HDD supply shortage in early 2012.

"In response to the crisis, priority will be given to the large PC manufacturers that drive HDD shipment volumes as well as to the high-margin products used in enterprise servers and storage. But the HDD vendors can't neglect their smaller customers, whose business will continue to be important once capacity is fully restored. Some interesting production and partnering arrangements with customers can be expected as HDD vendors scramble to bring production back up while simultaneously angling for a strategic advantage," said John Rydning, Research Vice President, Hard Disk Drives and Semiconductors.

For more information please visit www.idc.com.