Why are hard drives still so expensive

[elietu]

About a year ago I purchased a 1 TB harddrive(5900 RPM) for just under $ 50. Now the same thing costs like over $100? and 7200 rpm is ridiculous expensive. Now I know about the flood in thailand, but that happened a good while ago. I almost think the harddrive producers are just using the flood as an excuse to make more money now.

 

[rolli59]

You might be right but after the flooding we the consumer depleted their stock and until their levels are back up the price will remain high. It was predicted that the high prices would last through this year and in to the first quarter of 2013.

 

[GI_JONES]

Prices are coming down. They have dropped 10-15% since the end of last yr. Newegg had a 320gb Western digital blue on sale for about $65.00 a couple days ago.

 

[tokencode]

It was due to the flooding which knocked out some capacity. I think manufacturers who were not affected also took advantage of this as an excuse to raise prices and margins.

 

[dudewitbow]

its reported that its going to drop, but not during the upcoming times. give it a year.

 

[pit_1209]

many of their fab aren´t fully operational at this moment so prices will still be high, but everything will go down in a year more or less but maybe will be thinking about those ssd at usd1/gb that they been promising.

 

[Pinhedd]

Seagate had this brilliant idea that they would be able to add to their market cap if they summoned Poseidon and submerged their plant underwater. Something to do with adding value to their trademark. In an ironically profitable turn of events it turns out that Seagate actually built their plant on high ground so rather than submersing themselves, they submersed everyone else.

 

[teh_gerbil]

Supply and demand Pindedd, like petrol and for a commodity like HDD's, whilst the prices were previously falling, this spike is prices will be lining someone's pockets quite nicely, and while they can get away with it they will continue to gouge consumers in the pocket for HDD's. It's not really like you have a choice

 

[eXistenZ]

I am interested in how the floods have affected quality.

So if some plants were flooded and everyone is depleting their stocks, then one would expect a lot of crappy drives to find their way to market.

Have 1-egg or 1-star reviews increased since November? It seems like it.

 

[dudewitbow]

I am interested in how the floods have affected quality.

So if some plants were flooded and everyone is depleting their stocks, then one would expect a lot of crappy drives to find their way to market.

Have 1-egg or 1-star reviews increased since November? It seems like it.

they probably had to get rid of the ones that had contact with water, decreasing supply, which increases price.

 

[fb39ca4]

Seagate had this brilliant idea that they would be able to add to their market cap if they summoned Poseidon and submerged their plant underwater. Something to do with adding value to their trademark. In an ironically profitable turn of events it turns out that Seagate actually built their plant on high ground so rather than submersing themselves, they submersed everyone else.

I wish you could thumbs-up posts here like you can with news comments.

 

[unclejehmimah]

I wish you could thumbs-up posts here like you can with news comments.

I usually just say "+1 to what he said".

 

[unksol]

I think something that everyone here likes to ignore is the fact that along with the standard sitting inventory.gone and massive oem demand they had to put a LOT of money in to repairing the plants, replacing equipment and building new ones. And the reality is they need to make that money back. Its not as simple as "They are ripping us off". Im sure even Seagate has sunk money into new plants since theres demand

Your $50 harddrive is not being made in a plant that was already paid off anymore, yields are probably lower at first at a new or repaired facility, and they are still playing catch up with demand. The bottom line is the drives cost "more" for them to make due to all the lost/new equipment, demand is high, and so they are going to charge more. Prices ARE dropping though. And will continue to.

 

[eXistenZ]

I think something that everyone here likes to ignore is the fact that along with the standard sitting inventory.gone and massive oem demand they had to put a LOT of money in to repairing the plants, replacing equipment and building new ones. And the reality is they need to make that money back. Its not as simple as "They are ripping us off". Im sure even Seagate has sunk money into new plants since theres demand

True, but I doubt that any international manufacturing would put an electronics manufacturing plant -- and a good one at that -- in a South East Asian country without a ton of insurance on the facilities. I don't think a manager, finance or production, even could suggest forgoing adequate insurance.

I think we are correct in that this is straightforward supply and demand.