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

Vivo announces the X7 and X7 Plus smartphones

Vivo announces the X7 and X7 Plus smartphones

The Chinese smartphone maker Vivo has announced the X7 and X7 Plus smartphones. We reported on the devices two weeks ago. The Vivo X7 and Vivo X7 Plus are smartphones that are very much alike with the only difference being the size. Obviously the Vivo X7 Plus is the larger smartphone of the...

Rail Rush – got fast fingers?

Games have always been divided into categories, depending on their traits, so most of them fall in genres such as strategy, action, puzzle, runners and more. Rail Rush is a runner game, if you haven’t figured it out by now but it does come with some nice traits too. So the...

LG BP650 Portable Blu-ray Player

LG BP650 Portable Blu-ray Player

The BP650model is the first portable Blu-ray player from the LG Electronics. It features a 9-inch screen and along with the Blu-ray playback it is capable of DVD upscaling and to play files from a memory stick or hard disc drive. The BP650 Blu-ray player has fodable design with black metallic...

Leave a comment