Thailand floods slow hard drive production
Baku, October 20 (AZERTAC). The personal computer industry, already reeling from depressed demand, has been dealt another setback: Extensive flooding in Thailand has curtailed production of a critical component — computer storage drives.
Factories producing a third of the country`s hard drives have temporarily closed as flooding has spread gradually since August. Prices have spiked, and Apple warned that its Mac products likely will be affected.
The flooding has killed 317 people, mostly from drowning. Nearly 9 million people have been displaced or otherwise affected. Estimates of the economic cost were $3 billion and rising.
Computer manufacturers, the companies that supply hard drives and the makers of components for those drives are bracing for trouble. What`s not clear is to what extent PC production lines will be affected and whether PC makers will absorb costs or pass them along to consumers.
Thailand makes about a quarter of the world`s hard drives and is the second-largest producer behind China, according to IHS iSuppli. Market research firm IDC estimates that the flooding has affected a third of the country`s output, equating to more than 120 million hard drives a year. Avian Securities says the slowdown already is leading to price spikes that have added several dollars to the cost of some drives.
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