As the people of Thailand brace themselves as the floods continue to ravage their country; Dell, Apple and other hardware producing giants also prepared themselves to the effects brought by the country’s heavy flooding, they prepare for the loss of one of the world’s greatest supplier of hard drives.
The merciless flood waters claimed another HDD supplier, Nimec. Analysts have Nimec as the main supplier responsible for producing 70% to 80% of the world’s hard drive components. Toshiba, Seagate, Hitachi and other hard drive manufacturers are preparing themselves. The worst case scenario is being expected as Western Digital and Nimec’s operations ceased.
At a report in CNET, IHS-iSuppli and DisplaySearch’s analysts are expecting for hard drive prices to increase rapidly beyond the typical inventory of manufacturers which are good for four weeks. Prices will still be manageable in the short term. After the four week period, things will get uncertain.
Tim Cook, Apple’s CEO acknowledged the situation and said, “Like many others, we source many components from Thailand and have multiple factories that supply these components. There are several factories that are currently not operable, and the recovery timeline for these factories is not known at this point,” last week.
“We would say that our primary exposure is on the Mac…I’m virtually certain there will be an overall industry shortage of disk drives as a result of the disaster,” Cook added.