Update from HP on hard disk drive shortages due to flooding in Thailand

We have received this advisory from Hewlett Packard's Personal Systems Group

Thailand Floods- Potential Impact to HDD Supply and Risk Mitigation

Recent severe flooding in Thailand has led to loss of life, 2.2m people evacuated or made homeless and 14.8 million acres of land flooded. Damage is currently estimated at over $3B.

Thailand is the world’s 2nd largest exporter of Hard Disk Drives (HDD) with more than 30% of global production based there.

Key manufacturers such as Western Digital and Toshiba have closed factories due to being completely submerged under flood waters. This has affected a combined total of more than 700 factories, including several sub-component factories resulting in closure and/or component price increases.

HP anticipates serious impact to our November and December forecasted supply. Most HDD manufacturers are committing to 50% supply only. As a result HP is expecting severe shortages affecting Desktop, Workstations and Notebook supply.

This will impact all major PC manufacturers worldwide of which HP is the largest globally and will be working very closely with our HDD Suppliers to secure priority allocation and lessen the impact on our customers.

At this stage, we expect the current shortage to not only affect supply for the remainder of the year but pricing as well. HP hope to absorb costs related to HDD price increases for as long as possible.

HP is pleased to inform you that Solid State Drives (SDD) are not affected by the flooding but we are expecting a surge in demand as a result of the decrease in supply of standard HDDs. SSDs are more expensive, but offer customers greater value, performance and reliability. We are pleased to confirm that HP has secured supply of an additional 500,000 SSD drives to help with the expected shortage.


David Johnston
"Successful business is a result of interconnecting partnerships all working in synergy for a common goal. Our job is to ensure the efficiency and effectiveness of the strands that link it all together."

David Johnston
Think I.T. Team

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