International suppliers of hard disk drives (HDDs) are expected to raise prices as component costs will rise and demand from PC ODM/OEM makers has significantly increased due to the impact of serious flooding in Thailand, according to industry sources.

Western Digital, Seagate Technology, Hitachi Global Storage Technologies and Toshiba as well as supply chain makers of components have had most of their factories in Thailand impacted by the flooding, the sources indicated. The time needed to resume production will be longer than originally estimated, the sources noted. HDD prices are sure to rise beginning November, with the extent of increases depending on the flood damage, the sources indicated.

Demand for HDDs from PC ODM/OEMs was originally flat due to tablet PCs, but has turned strong because makers are worried about shortages arising from the flooding, the sources said. In addition to price hikes, there is likely to be short supply of HDDs, the sources indicated.

Of the global HDD production capacity, 70% is allocated to notebook and desktop ODM/OEMs and 30% is used for consumer and business-use external HDDs, the sources noted.

Source:digitimes