Seagate expects hard drive supply problems to continue

Seagate CEO and chairman Stephen Luczo has given a very negative prognosis on the development of the hard drive crisis, stating that recovery may not happen even in 2012.

“This is going to take a lot longer than people are assuming, until the end of 2012 at least. And by then, demand will have gone up,” Mr. Luczo said. “The projections by some Wall Street analysts that production will be back to pre-flood levels by summer are nonsense”. Luczo also said.

Many analysts currently expect the HDD industry to recover by the middle of 2012. The problem is that even CEOs of big hard drive companies such as Western Digital or Toshiba do not know the whole situation around the flooding in Thailand and exact consequences for manufacturing capacities. To make things worse, hard drive makers have not yet released any rescue plans to their partners and the public. This is why it is not known whether they will need to rebuild their factories, acquire new equipment and install it or will just have to clean the things up and start production.

Seagate

According to Seagate’s CEO, the main question is which PC companies get the drives as this will directly impact their market presence. For example, certain clients of Seagate suddenly desired to lock up some of Seagate’s capacity, even with the higher prices. Some have offered $250 million upfront, according to the executive.

“It’s going to be very interesting to see who gets drives and who doesn’t,” said Mr. Luczo.

Source: Bloomberg

Related posts

Cisco intros new Flip UltraHD and MinoHD camcorders

Cisco today announced the UltraHD and MinoHD pocket-sized video cameras, featuring HD video recording, hardware-based image stabilization and  FlipShare software, allowing easy upload to Twitter, Facebook and YouTube. The Flip UltraHD family include two models called 2hr (hour) and 1hr, which...

ASUS ready to release VivoBook S300

ASUSTeK Computer Inc. has prepared a new 13.3 sensor notebook that will be known as VivoBook S300. Despite its small size however the VivoBook S300 packs decent hardware and might be of interest to anyone who needs a small form factor notebook. The VivoBook measures 331 x 234 x...

Lenovo IdeaCentre A600 All-in-One Desktop

The latest addition in IdeaCentre line up is an all-in-one desktop computer -- a first for Lenovo. The new, sleek IdeaCentre A600 all-in-one features a 21.5-inch frameless screen, and provides discerning space-conscious and style-conscious users a modern design that measures only one inch at...

Leave a comment