HP and EMC to Raise Prices of HDD in 2012; Flooding in Thailand to Blame

Hewlett Packard and EMC have warned they will increase the price of hard-disk drives starting next year.

Thai suppliers of both companies have increased the prices of HDD components due to a supply shortage caused by a devastating flood in Thailand that killed hundreds of people and destroyed many homes and factories. It may take many months to rebuild and reestablish production lines.

EMC said it had been bearing the brunt of the price increase all these months but was not forced to increase the prices to compensate for the price rise until now.

"To date EMC has absorbed the price increases passed on to us by our hard-disk drive suppliers and we will continue to do so through the end of the month. However, beginning in Q1 2012 we will be increasing hard-disk drive list prices from five percent up to 15 percent for an indefinite period of time.", EMC said, ZDNet reports.

HP did not say when it plans to implement the price increase but did say suppliers had increased prices by almost 20 percent. The company said the floods had hit the supplies and materials needed to make SATA and SAS drives, increasing the cost of the components.