NetApp Drives Price Increase

NetApp has announced that they will be increasing NetApp disk drive prices effective February 6, 2012 due to hard disk drive (HDD) shortages resulting from the recent flooding in Thailand.

NetApp is the most recent vendor to increase their list prices in reaction to the destructive flooding that occurred in Thailand this fall. Following the example of EMC and Hewlett-Packard, NetApp made a statement announcing that they will increase NetApp drive prices by 5-15% over the current list pricing.

Vendors React to Shortages

No longer able to absorb the additional cost of hard disk drives, NetApp said that the increased price of hard drives will be only be temporary. In a similar approach, EMC has raised the prices of their drives this quarter. Price increases for EMC disk drives are confirmed by an EMC spokesperson to be 5-15% higher than prices from the fourth quarter of 2011.

Hewlett-Packard has not yet released pricing plans for their hard disk drives, although HP has stated that any price increases for their disk drives will be temporary. Dell has also declined to comment on any planned price increases for their drives.

Thailand Production Begins to Recover

The severe Thailand flooding killed more than 600 people from July to November 2011, destroying manufacturing facilities and halting the production of products including hard disk drives and automobiles. Despite the terror and destruction the flooding produced, Thailand is beginning to restart production in some areas of the country.

Western Digital, the hard drive producer which received the most damages from Thailand’s flood waters, partially restarted production of disk drives in one facility in December. The facility had been submerged under six feet of flood water for approximately one month before the flooding began to subside.


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