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Noah’s Flood: HDD Prices Expected To Crash

Noah

It says a channel retailers have piled up HDD inventory in recent weeks due to concerns over potential shortages – concerns, incidentally, fanned by DigiTimes reports suggesting a shortage and consequent high prices were nigh.

Now – with the imbalance between supply and demand appearing not as serious as originally expected – DigiTime says the retailers are preparing to dump their HDD inventory in a bid to avoid being hurt as capacity is gradually restored in January and February.

Japan-based hard drive motor supplier Nidec has already announced that one of its plants in Thailand has resumed production, while other component suppliers are seeking ways to substitute their lost capacity in Thailand.

The newswire adds: “Since the hard drive shortages may not be as serious as expected, while demand in the PC market remains weak as pricing has surpassed consumers’ sweet spot, several retailers are already set to drop their hard drive prices and dump inventories into retail channel in December.”