The ceo of Seagate predicts difficult times for the hdd industry. According to the ceo it will certainly still have until the end of 2012 to take the production back to its old level. At the same time, there are reports that the prices nevertheless could decline.
The plants of Seagate in Thailand are themselves hardly affected by the flooding. For each drive, which the manufacturer assembles, however, are the components needed from approximately 130 suppliers, of which there are many, however, have to contend with massive flooding. Published this week reports that the production level for the summer levels, but the ceo of Seagate, Stephen J. Luczo, is compared to Bloomberg a lot more pessimistic. “This is going to be a lot longer than everyone now accepts, at least until the end of 2012. By that time the demand will be increased.”
According to the director, it is interesting to see which parties are stocks in hands. Luczo claims that some companies are already 250 million dollars have offered to “reserve” capacity. The expectation is that the oems in the front row. Meanwhile, would onderdelenmakers engaged are machines to dry locations to transport, even through holes in the roofs would have to be done. Relocations are time-consuming and also it will still take time for the machinery is fully functional again, depending on the fact in what extent water damage.
Seagate has according to Digitimes deliveries are made with 10 to 18 percent have been revised downward. The manufacturer would expect that all manufacturers in the fourth quarter of 110 to 120 million hdd’s can supply, while demand would be to 180 million pieces. Positive for the hdd industry is that the demand for pcs in the U.S. and Europe is currently very low.
Possible hdd deliveries Q3-Q4 2011 (in million pieces)
FabrikantQ3Q4
Western Digital
58
22-26
Seagate
50
41-45
Hitachi
32-32
20
Toshiba
22
12
Digitimes, Samsung has for unknown reasons not included in the leveringscijfers
At the same time, message again Digitimes that retailers in the channel are already doing to the stocks that they have built, in anticipation of an increase of the production in early 2012. Multiple parties in the verkoopketen would supplies have to be in december to take advantage of the high demand and corresponding prices. That question, however, seems to fall. Multiple parties would therefore the prices decrease. Incidentally, it seem the hdd prices in the Pricewatch also has to stabilize.