EMC prices for hard drives are projected to increase by 15% starting
January 1, 2012 as a direct result of the flooding in Thailand during
this year’s 4th quarter. EMC Vice Chairman Bill Teuber reported the
price increase to customers and partners through email last week,
reporting that the shortages created by the flooding have driven EMC to
increase their prices.
Impact on EMC, Other Enterprises
The price increases associated with EMC drives is not a complete surprise. Teuber stated that EMC absorbed the increased cost of EMC hard drives in the 4th quarter of 2011, but that they will no longer be able to maintain this strategy.
Therefore, starting January 1, EMC will be passing the increased costs on to customers. Prices are expected to rise 15% and will be applied to all EMC product lines. Teuber says that while he cannot predict how long the shortage of EMC drives will last, he anticipates that the EMC price change will be temporary.
While predicted to impact computer hard drives more than enterprise hard drives, it remains to be seen how long the shortages will last. The IDC predicts that supply levels and prices of hard disk drives will return to normal by for the second half of 2012.
Impact on Thailand
While the flood waters continue to recede, Thailand has reduced their economic growth forecast for 2011 to account for the devastating flooding that occurred in the monsoon season in Thailand. The flooding is the worst that Thailand has seen in almost half a century, killing over 400 people and destroying industrial manufacturing plants.
Currently Channel News Asia has reinforced the idea that Thailand should be back to normal by the end of the second fiscal quarter of 2012. Channel News Asia states that that most estimates predict a 3- to 4-month recovery time frame for Thailand’s manufacturing facilities, but it may take several more months for the country’s economic growth to recover.
Impact on EMC, Other Enterprises
The price increases associated with EMC drives is not a complete surprise. Teuber stated that EMC absorbed the increased cost of EMC hard drives in the 4th quarter of 2011, but that they will no longer be able to maintain this strategy.
Therefore, starting January 1, EMC will be passing the increased costs on to customers. Prices are expected to rise 15% and will be applied to all EMC product lines. Teuber says that while he cannot predict how long the shortage of EMC drives will last, he anticipates that the EMC price change will be temporary.
While predicted to impact computer hard drives more than enterprise hard drives, it remains to be seen how long the shortages will last. The IDC predicts that supply levels and prices of hard disk drives will return to normal by for the second half of 2012.
Impact on Thailand
While the flood waters continue to recede, Thailand has reduced their economic growth forecast for 2011 to account for the devastating flooding that occurred in the monsoon season in Thailand. The flooding is the worst that Thailand has seen in almost half a century, killing over 400 people and destroying industrial manufacturing plants.
Currently Channel News Asia has reinforced the idea that Thailand should be back to normal by the end of the second fiscal quarter of 2012. Channel News Asia states that that most estimates predict a 3- to 4-month recovery time frame for Thailand’s manufacturing facilities, but it may take several more months for the country’s economic growth to recover.
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