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[OCN Discussion] The real reason why Hard Disk Drives now cost so much. - Page 5

post #41 of 43
Well.. Let's take a minute to apply some common sense to this thread instead of wild speculation.

The actual amount of neodymium in a hard drive is relatively low. I've pulled a few apart myself. Though not rectangular, they're about 2mm thick x 30mm long x 20mm wide. Quite small.

Now what about actual prices for neodymium? OP hasn't actually mentioned anything about the specific price, only that rare earth costs have been rising.

Without registering, this is the most up-to-date information I could find on Nd prices. It shows a general falling trend.

No, hard disk prices rose due to the floods and have stayed there because they continue to sell.
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post #42 of 43
While news stories have said it would be years before we saw prices returning to normal, here in Canada it seems are progressing a little more quickly. At a recent sale at NCIX drives were seen at $90 for a 2TB external and $100 for a 2TB internal. Hopefully by the end of this year things will be back to normal.
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post #43 of 43
Quote:
Originally Posted by _GTech View Post

Did all of the HDD Plants get flooded?
Does Western Digital supply all of the parts for all HDD makers?
I'm not going to buy the floods are the main reason, I think greed is the main reason, they just needed something as justification to raise prices...
My article may not be accurate, indeed I may even be wrong, but then again, there has to be some reason why they suddenly jumped for all manufacturers..
I smell collusion and price fixing, that's what I'd like to really see get investigated.

You really need to do much better research before making accusations. Your assumptions are based on incomplete knowledge and baseless accusations.

1) What is the cost of rare earth metals in HDDs?
2) What is the price increase in rare earth metals in the last 2 years?

Answer these two points and it becomes obvious that your hypothesis does not hold water. The increase cost of materials cannot come close to accounting for the total price increase. It is presumptuous of you to claim a news article without basic research.




http://www.isuppli.com/Memory-and-Storage/News/Pages/Thailand-Flood-Disrupts-Hard-Disk-Drive-Supplies.aspx

* WD and Toshiba plants were flooded..... combined the two companies make up over 40% of the HDD market. WD supply dropped by 60% and Toshiba dropped by 50% due to flooding. That means world's supply of HDD went down by 25%. Decreased supply with unchanged demand leads to higher prices.
* Nidec Corp. which supplies motors to ALL HDDs supply was affected. Reduce supply of motors to all HDD companies will restrict production.
* Hutchinson Technology's suspension assembly plant was affected but they shifted production to other plants. This still costs them money.
* Uncertainty increases risk which increases costs.



SEC Filings for Seagate: http://biz.yahoo.com/e/120201/stx10-q.html
Quote:
Even though the HDD supply chain was significantly impacted by the severe flooding, our component and drive assembly factories in Thailand were not directly affected by the flood, and continue to be fully operational. However, seven of our ten largest component suppliers had some of their factories inundated which lead to shortages of some critical components. As such, in the December 2011 quarter, we shipped 46.9 million units, which is less than our installed manufacturing capacity, and we believe total shipments in the industry were 119 million units, which was significantly less than unconstrained demand.

Edited by DuckieHo - 3/14/12 at 6:40am
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