Thailand floods – how will they affect you?

You may have become aware that there has been some severe flooding in Thailand lately that has caused disruptions to transport and distribution and utility services in the region. A number of disk drive and component manufacturers have been affected as a result. It is also having a knock-on effect for some PC vendors. The upshot of this is that we are seeing inconsistencies and fluctuations in prices of hard disk drives and PC products. There may be a short period during which, we’ll be able to supply only a limited quantity of WD or Hitachi drives to individual customers.

The same may also be true of some PC lines – although stock levels are OK for the time being. The main impact on supply is expected to come from December onwards for PCs, so if you want to make sure that you secure product, now is the time to place your orders.

Current exchange rate pressures are making the situation more complicated for PC vendors and some of them are reallocating supplies to ensure they maintain their profitability. All PC manufacturers are currently evaluating the impact that these events are likely to have on their supply.

We are working closely with vendors at a central level to get more detailed and up-to-date information on supply and potential price changes. We are also looking to secure incremental allocation where we see supply issues. The components supply chain to Thailand factories has also been impacted by the floods and whilst, at this stage, it’s difficult to tell exactly how this will affect disk drive and PC systems availability for the rest of the quarter, our suppliers have informed us that they do not anticipate too much in the way of longer-term disruption. The situation is constantly changing though, so please keep in touch with us and we will inform you of all the latest developments or announcements and advise you on the best course of action.