The floods in Thailand certainly had an effect on hard drive supplies and prices, and now Western Digital's earnings report for Q1 2012 attaches some hard numbers to the impact. Although prices rose 47 percent to $69 per unit over last year, WD sold 23.7 million fewer hard drives, a 45 percent drop. Some of that price jump can be attributed to increased manufacturing costs, but most of it went to towards profit with a gross margin increase to 32.5 percent over last year's 19.2. Overall, WD reported $199 million in expenses related to the floods and $2 billion in total revenue, down about half a billion dollars from last year. The company says its factories in Thailand should be back to pre-flood capacities by September 2012, with inventory pipelines replenished in the first half of 2013. But in the end, it looks like it could be a while before hard drive prices return to September 2011 levels.
Western Digital hard drive prices rose 47 percent after Thai floods

There are 18 Comments. Add yours.
glad I brought my WD Passport for £49 when i could – they won’t be seen at that price atymore
Posted on Jan 24, 2012 | 12:14 PM EST reply Recommend Flag actions
Sadly, I need more drives soon… (as in 6+)
But the ones I want are still at 170% of preflood prices.
Posted on Jan 24, 2012 | 12:32 PM EST reply Recommend Flag actions
Drobo! Turn off that yellow light! I need you to last for one more year baby, then I’ll get you some more drives.
Posted on Jan 24, 2012 | 12:33 PM EST reply Recommend (6) Flag actions
Great news .It will drive the prices of SSD’s down .
Posted on Jan 24, 2012 | 12:37 PM EST reply Recommend (1) Flag actions
Dream on.
Posted on Jan 24, 2012 | 2:17 PM EST reply Recommend Flag actions
What planet do you live on?
Posted on Jan 24, 2012 | 3:05 PM EST reply Recommend Flag actions
The one where increased price of one good causes more demand for a substitute good and where that substitute good has yet to really take advantage of economies of scale.
Posted on Jan 24, 2012 | 6:08 PM EST reply Recommend (1) Flag actions
SSD are reaching $1 per GB. Most of the time, they are tied with rebates though. Still better than paying for a lame slow HDD. SSD FTW!!!
Posted on Jan 24, 2012 | 3:28 PM EST reply Recommend Flag actions
Meanwhile all the hard drive manufacturers still think it’s just plain good business sense to concentrate almost the entirely of HD production to one area of one country.
Posted on Jan 24, 2012 | 12:41 PM EST reply Recommend Flag actions
Wish we could edit, I meant to say entirety.
Posted on Jan 24, 2012 | 12:42 PM EST reply Recommend Flag actions
That blows. I’m looking for a 1-1.5 TB drive and the prices are all higher than I care to pay right now.
BTW, can someone explain why the price for internal HDs is higher than the price of similarly specd already encapsulated external drives? I mean, I have a really nice enclosure that I would love to reuse, but I’ll end up paying more for a nice hard drive, than If I buy an external one and just strip it.
Posted on Jan 24, 2012 | 1:01 PM EST reply Recommend Flag actions
I picked a terrible time to buy a Synology DS1511+ Then again it is replacing a drive killing Drobo so I will probably come out ahead if drives last more than 3 months in it.
Posted on Jan 24, 2012 | 1:22 PM EST reply Recommend Flag actions
I was lookin forward to setting up a full Synology system going with a 411+ or maybe the 1511 but now will end up holding out as I think it’s ridiculous at the market’s current prices. As of now, seems like going SSD would be almost just as reasonable! Which drives were you planning on using?
Posted on Jan 24, 2012 | 2:10 PM EST via mobile reply Recommend Flag actions
Some of the prices rose a lot more than 47%. For example, the 2TB WD Black rose more than 100%
http://camelegg.com/product/N82E16822136792
Posted on Jan 24, 2012 | 1:29 PM EST reply Recommend Flag actions
I was buying WD green drives for 60.00 for 1.5tb pre flood. I’ve seen them at retail for 170 now. That is FAR more than 45%
Can’t wait for prices to come back down though..
Posted on Jan 24, 2012 | 2:12 PM EST reply Recommend Flag actions
Did Western Digital raise the factory floors so they can’t be flooded again? Did Western Digital seal the building so they can’t be flooded again? Did Western Digital move to an area that doesn’t flood? Does anyone at Western Digital have any foresight whatsoever?
Posted on Jan 24, 2012 | 3:02 PM EST reply Recommend Flag actions
The Seagate Barracuda XT 3TB drives went up 60%. I hope they’re able to catch up and normalize soon.
Posted on Jan 24, 2012 | 3:05 PM EST reply Recommend Flag actions
HDD prices in Australia more than doubled after the floods, regardless of size or manufacturer. An example the 2TB WD Green drives were about AUD$80 before the floods, shortly afterwards they were AUD$200. I just hope they can come down to the prices they were, although I realize this wont happen for many more months.
Posted on Jan 24, 2012 | 10:54 PM EST reply Recommend Flag actions
Something to say? Choose one of these options to log in.