Hard-drive prices have skyrocketed since October, and shortages have forced independent computer makers to raise PC prices by up to 20%. Analysts expect PC prices to continue rising as the severity of the floods are assessed, with prices expected to stabilise as shortages end by the first half next year.
Thailand accounts for up to 45% of worldwide hard-drive production and floods have disrupted production and supply chain operations of key hard-drive makers Western Digital, Seagate and Toshiba. With fewer hard drives rolling out of Thailand and increased prices, research firms have lowered worldwide PC shipment expectations for the fourth quarter this year and next year's first quarter.
The world's largest PC makers like HP and Dell are feeling a lesser impact as they retain months of hard-drive supplies, analysts said. Even in the shortage, embattled hard-drive makers are shipping a bigger chunk of units to large PC makers to meet contract commitments, which in turn is hurting smaller PC makers buying from distributors or the open market.
Spot prices of hard drives are going up, and small PC makers are feeling a big impact as large PC makers wield larger control over hard-drive supplies, said Bob O'Donnell, programme vice president at IDC.
"They are highest on the priority list to get the products," O'Donnell said.