Thai Floods May Increase Cost Of Hard Disk Drives By 25 Per Cent, Claims Analyst

Thailand has been hit hard by its worst flooding on record over the past week, and the hard disk drive market is set to be significantly affected by that natural disaster.

One analyst, Iain Bowles from Probrand, says that the area where around three quarters of the hard disk drives on the market are produced could be out of action for almost two months.

This in turn could create massive shortages and drive up the cost of hard disk drives, even higher than when Japan was hit by the devastating Tsunami.

"At the start of the floods in Bangkok, the IT industry had four weeks or 28 days of finished disk drive stock in the supply chain. If the rains stop today it will be a minimum of 56 days before production can re-start. Thai authorities have said it will take two to four weeks to pump out flooded areas and that is even before any actual clean up can start," he said.

Around 177 million hard disk drives were sold during the last quarter which equates to around two million units a day, and demand for this quarter is expected to surpass that number.

The Thai flooding could cause a shortfall of around 20 million units per month and cause the price of hard disk drives to go up by 25 per cent, which could have a knock-on effect on the price of computers as well.