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Pricing of hard disk drives may start to go down already this summer as Western Digital, formerly the largest maker of HDDs, expects to restore all of its production capacities that suffered severe flood in Thailand by July, which will mean the end of hard disk shortages.

When asked about actual production capacities of the company going forward, chief executive officer of Western Digital elaborated that the firm expects to have no constraints in terms of manufacturing capacities during the quarter that ends on September 30, 2012 and begins on July 1, 2012. Generally, this means that WD's capacities will be restored completely by June 30, or earlier.

"We expect to be at 100% of capacity in the September quarter. So yes, exiting the June quarter, we'll have to be getting to that run rate," said John Coyne, chief executive officer of Western Digital, during the most recent conference call with financial analysts.

Previously, WD indicated that it would restore production capacities by September, but did not elaborate when exactly. Apparently, the company will be at 100% of pre-flood manufacturing capacity already by the middle of the year. Given the fact that Seagate shipped 58 million of hard drives in Q3 2011, the company expects to be at that level in Q3 2012.

With better availability of hard disk drives starting mid-2012, prices of hard disk drives will start to return to pre-flood points around that time as well.

Tags: Western Digital, WD, HDD

Discussion

Comments currently: 4
Discussion started: 02/05/12 08:20:08 PM
Latest comment: 02/07/12 04:37:29 PM
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1. 
Say them, if they wont remove Spin Down Time feature or at least wont increase Time To Spin Down, I wont buy Western Digital HDD anymore.
0 0 [Posted by: Azazel  | Date: 02/05/12 08:20:08 PM]
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What is this? Explain, plz!
0 0 [Posted by: Zingam  | Date: 02/06/12 12:59:17 AM]
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Wah-Wah!
Fine, just buy Seagates and keep your UPS account open so you can return the post STxxxxx.10 drives every 2-6 months.
0 0 [Posted by: fdunn  | Date: 02/07/12 04:21:36 PM]
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2. 
Western Digital needs to diversify the geographic locations of their assembly plants, and require contractors to be within 25 miles.

For the USA and associated markets they should have self sufficient plants located in the USA, Canada, Mexico, or South America.

Yes, it may cost more initially on labor but your sales won't go to 1/2 or less.

Beside that, Indonesia (while having quality output) is on the "Ring of Fire", so it is not whether it will happen again it is just when.
Locating the plants on higher ground is also not the answer in Indonesia since plant resources (including personnel) are not assured to be on higher ground.

BONE-HEADS.

Just don't go to China!
0 0 [Posted by: fdunn  | Date: 02/07/12 04:37:29 PM]
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