As many know, this past October, Thailand experienced its worst floods in over 50 years. These floods caused horrific loss of human life, homes, infrastructure and business to the people of Thailand. Secondary to that horror, the world sustained substantial loss in the Hard Drive Disc market. Thailand is one of the global leaders in the manufacturing of hard drives. Companies such as Seagate, Western Digital, Apple, and Cisco, just to name a few, all receive product from Thailand. Hard drive pricing increases and surcharges are being seen all over the technology landscape and will continue at least into 2012. The security world with DVRs and NVRs is no exception.
For a comprehensive timeline of information from industry leaders regarding the effects of this flooding, please refer to this Associated Press article .
Several of USA Security’s product partners have had to add surcharges or increase hard drive pricing such as Salient Systems ($10 per TB) and Honeywell Security (from $100 for 250GB on DVRs and $80 for 2TB SATAs on NVR). Others include While USA Security’s primary products, NUVICO and Avigilon (w/ Dell towers and servers) have not yet raised pricing. POINT OF CONVERSATION: While USA Security does not sell GANZ or INTERLOGIX, they have not yet announced price increases either.
PRE PUBLISH FOLLOW UP: The following was sent to us from Alarm Products Distributors prior to publication.
“Western Digital has one factory up and running. Below is information on general hard-drive production, not specifically related to the video grade drives that we sell.
The company believes that hard drive industry shipments in the December quarter will be limited to approximately 120 million units due to production and supply constraints related to the floods. This number includes units that were in inventory at the beginning of the quarter. The company believes that demand for the December quarter is in the range of 170 million to 180 million units. The company believes that shortages will continue in the March quarter and beyond.
They should be able to get a second factory pumped dry in the next 10 days, and will have to decontaminate and refurbish it.
As they clean up these factory’s we should get more a more concise timeline.”
While USA Security anticipates the pricing of Hard Drives to be higher in 2012 than they were in 2010, We will continue to work with the budgets of the end-user to provide the best solution affordable.