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Hard drive shortage
xtabber:
Woody Leonhard, who lives in Thailand, has a piece on the Windows Secrets site about the flooding and the effects on the hard disk industry.
He claims that the manufacturers, or at least their share-holders, are actually quite happy with the situation because it has temporarily changed th HD market from cut-throat commodity pricing to high profit margins.
db90h:
Woody Leonhard, who lives in Thailand, has a piece on the Windows Secrets site about the flooding and the effects on the hard disk industry.
He claims that the manufacturers, or at least their share-holders, are actually quite happy with the situation because it has temporarily changed th HD market from cut-throat commodity pricing to high profit margins.
-xtabber (November 17, 2011, 06:28 PM)
--- End quote ---
That is what I've said a few times, in much longer sentences ;p. For them, in such a low-margin industry, I actually can give them a little sympathy though. It isn't like the Oil companies ya know, these guys were barely scraping by on HDD profits as it was. That is why I do not expect anyone to be too quick to fix the 'problem', if you know what I mean... ;p
Renegade:
I've never seen any reports on what HDDs cost to manufacture and sell that indicated anything about their pricing.
Does anyone have any inside information or know of any reliable information on the topic? I'm curious.
db90h:
I've never seen any reports on what HDDs cost to manufacture and sell that indicated anything about their pricing.
Does anyone have any inside information or know of any reliable information on the topic? I'm curious.
-Renegade (November 17, 2011, 07:19 PM)
--- End quote ---
The cost of goods manufactured will be on the financial statement of any publicly traded company, so you could look this up if you wanted. Depending on how detailed the information you got was, it could be the total cost of the goods (including labor), or itemized all the way down to every piece. Of course, there is the set cost and the dynamic cost (incorrect terms, go look up the right ones, but you know what I mean, the base cost of doing business [e.g. factory], then cost per unit for quantity). Right now, of course, it is all about supply and demand (and speculation), and a temporary inability to produce sufficient capacity resulting in an excuse to raise prices.
UPDATE: Of course, the end retail price is of course inflated further, as the manufacturers sell in large bulk blocks, with each individual unit costing substantially less than you'd pay retail on a single unit basis. On eBay I saw large blocks of WD20EARS going for around $200 a piece though, indicating the likely end retail price, at least as predicted by some, in the short term.
Renegade:
I've never seen any reports on what HDDs cost to manufacture and sell that indicated anything about their pricing.
Does anyone have any inside information or know of any reliable information on the topic? I'm curious.
-Renegade (November 17, 2011, 07:19 PM)
--- End quote ---
The cost of goods manufactured will be on the financial statement of any publicly traded company, so you could look this up if you wanted. Depending on how detailed the information you got was, it could be the total cost of the goods (including labor), or itemized all the way down to every piece. Of course, there is the set cost and the dynamic cost (incorrect terms, go look up the right ones, but you know what I mean, the base cost of doing business [e.g. factory], then cost per unit for quantity). Right now, of course, it is all about supply and demand (and speculation), and a temporary inability to produce sufficient capacity resulting in an excuse to raise prices.
UPDATE: Of course, the end retail price is of course inflated further, as the manufacturers sell in large bulk blocks, with each individual unit costing substantially less than you'd pay retail on a single unit basis. On eBay I saw large blocks of WD20EARS going for around $200 a piece though, indicating the likely end retail price, at least as predicted by some, in the short term.
-db90h (November 17, 2011, 07:59 PM)
--- End quote ---
I don't do any supply chain work (or at least not in that area), and am not exactly Mr. Finance.
Can you help point me to wherever I could find that? A hard drive example would be great, but any example will do. Basically, if you can show me where to look, that would be fantastic.
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