It is reported that Thailand's floods has led to hard drive out of stock, which will have an adverse impact on computer makers as early as in the December of this year. The affected companies include Intel, Apple and Dell.
Thailand is currently the world's second largest producer of hard drives. Hard drives are widely used in notebooks, servers, and television set-top boxes. The analysts and industry executives said that Thailand's floods will lead to some hard drive factories are forced to close or cut production. The market research firm said in the last three months of 2011, the global production of hard drives will decrease 30% at most.
Intel on Friday said it would closely monitor the situation changes. The company also expects the current inventory of hard drives, as well as the unaffected drive line will ensure the needs of the PC industry. If the computer manufacturers' PC production fell, the processor Intel sold will be reduced. Intel's spokesman said: "PC supply chain has been proved to be extremely flexible this year. After a major earthquake in Japan, this has been proved."
As major hard drive manufacturers, Western Digital and Seagate have factories in Thailand. Since the July of this year, the flooding has caused at least 320 people killed in Thailand. It has caused serious damage to the industrial areas in Central Thailand. Currently, the Western Digital's factory in Thailand has been closed and Seagate's factory is still operating. But the company warned that it may be faced with the problem of component shortages. Apple's CEO Tim Cook in a conference call this week said he expects the industry will face a shortage of hard drives.
Intel said Thai floods will not affect the PC market in the fourth quarter. Some analysts therefore believe that this December, the stock shortage of hard disks will affect the PC production. The analysts said: "We do not know how they avoid the impact, so we recommend investors to avoid Intel's current stock." Due to the production of the plants in Thailand in the coming weeks will be limited, so customers will face more severe stock-outs in early 2012.
Thailand is currently the world's second largest producer of hard drives. Hard drives are widely used in notebooks, servers, and television set-top boxes. The analysts and industry executives said that Thailand's floods will lead to some hard drive factories are forced to close or cut production. The market research firm said in the last three months of 2011, the global production of hard drives will decrease 30% at most.
Intel on Friday said it would closely monitor the situation changes. The company also expects the current inventory of hard drives, as well as the unaffected drive line will ensure the needs of the PC industry. If the computer manufacturers' PC production fell, the processor Intel sold will be reduced. Intel's spokesman said: "PC supply chain has been proved to be extremely flexible this year. After a major earthquake in Japan, this has been proved."
As major hard drive manufacturers, Western Digital and Seagate have factories in Thailand. Since the July of this year, the flooding has caused at least 320 people killed in Thailand. It has caused serious damage to the industrial areas in Central Thailand. Currently, the Western Digital's factory in Thailand has been closed and Seagate's factory is still operating. But the company warned that it may be faced with the problem of component shortages. Apple's CEO Tim Cook in a conference call this week said he expects the industry will face a shortage of hard drives.
Intel said Thai floods will not affect the PC market in the fourth quarter. Some analysts therefore believe that this December, the stock shortage of hard disks will affect the PC production. The analysts said: "We do not know how they avoid the impact, so we recommend investors to avoid Intel's current stock." Due to the production of the plants in Thailand in the coming weeks will be limited, so customers will face more severe stock-outs in early 2012.
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