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

1080р and incredible contrast with the new ThemeScene HD82 cinema projector from Optoma

Experience dazzling colours and razor sharp images on a huge 150in screen with the new ThemeScene HD82, the latest addition to Optoma’s ThemeScene range of DLP home cinema projectors. With an incredible 20,000:1 (680:1 ANSI contrast for “real-world” performance) contrast ratio and 1080p full HD...

LG LED LCD TV LH95 - Slimmest LCD In The World

Now, the LG LED LCD TV LH95 is being touted as the slimmest LCD screen in the world, coming in at a impressively svelte 24.8mm thick. That’s all fine and dandy but there is no mentioned as to whether the LH95 is a HDTV or not. Granted, it would be pretty silly on the cusp of 2009 to be...

Casio's EXILIM EX-H20G allows geotagging

Casio also unveils today the world’s first digital camera with Hybrid GPS system, which combines GPS with autonomic positioning and enables geotagging of photos and videos even while you are indoors. The heart of EX-H20G is a 14.1 megapixel sensor, supported by the new EXILIM Engine HS, the...

Leave a comment