Posted on 10/20/2011 2:09:53 PM PDT by TigerLikesRooster
Thai Floods Jolt PC Supply Chain
By SHARA TIBKEN
Western Digital Corp. said flooding in Thailand is having a "significant impact" on the hard-disk drive maker's operations and its ability to meet customer demand in the current quarter, adding supply concerns to an industry already hurt by weak consumer spending on PCs.
The flooding in Thailand, the world's second-largest exporter of hard-disk drives, comes during the key selling season for hard-disk drives, with PC makers obtaining supplies for holiday sales. Analysts said it likely will lead to higher prices and potential supply constraints later this year or early next year.
"The PC market has been demand challenged, but now it's also supply challenged," ThinkEquity analyst Rajesh Ghai said. "It's a double whammy."
Western Digital, the world's largest provider of hard-disk drives, said Monday it is extending the suspension of its Thailand operations amid the country's worst floods in half a century. About 60% of Western Digital's hard-disk drives come from its Thailand sites, and the majority of its hard-disk drives go to the PC market. In addition, many components companies also have suspended operations, hurting other disk-drive makers.
(Excerpt) Read more at online.wsj.com ...
I have friends who live there. They are starting to run out of food too.
It is almost the entire country flooded.
It’s a shame we don’t make HDs and computer hardware here. Just imagine the thousands and thousands of jobs we’d have....
It appears so, judging from bits and pieces of stories coming out of the country.
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