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Why are hard drives more expensive now than 3 years ago?

post #1 of 24
Thread Starter 
Why are hard drives more expensive now than 3 years ago?

I realize many HDD manufacturing factories were put out of commission by the flooding in Thailand in Oct & Nov 2011. But is this really still effecting HDD prices almost 2 years later?

Take for example two of the most popular 1TB drives of 2010. The Samsung Spinpoint F3 1TB and the Western Digital Black 1TB, and compare it to a Western Digital Red 1TB now.

Samsung F3 1TB - Aug 2010 $90. Aug 2011 $50


WD Black 1TB - Feb 2010 $120. Aug 2010 $90. Aug 2011 $75


WD Red 1TB - July 2012 $110. July 2013 $95
post #2 of 24
I've heard the manufacturers are keeping the prices artificially high. The prices went way up during the floods, why let the prices drop all they way back down again when they can keep the prices higher and increase profits?
     
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post #3 of 24
1 word


Inflation



solved

And you can also kinda tie into the CPI (consumer price index) and some other factors...increase in oil prices = higher shipping costs, and many other increased factors.

Look around, HDD aren't the only thing that have increased in price in 3 years...
post #4 of 24
Quote:
Originally Posted by Cakewalk_S View Post

...Look around, HDD aren't the only thing that have increased in price in 3 years...

Such as RAM!
     
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post #5 of 24
Quote:
Originally Posted by Scott1541 View Post

I've heard the manufacturers are keeping the prices artificially high. The prices went way up during the floods, why let the prices drop all they way back down again when they can keep the prices higher and increase profits?

That pretty much nails it although I suspect they are trying to recoup their losses from the floods in Thailand where most HDDs are made.
     
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post #6 of 24
It's a scam. All they've done in 3 years is add 4TB as a capacity and prices are higher than back then. It's artificial. It's not oil prices...they've been steady. Inflation, maybe, but 3 years and no progress in capacity and an increase in price...they're slacking. They are phasing out internal hard drives. Pretty soon, you are going to have to have a business license to buy hard drives. Everything is moving to some cloud. It's the only way the control freaks can get what they want. DRM isn't good enough, so the only way is to make sure people have no access to store the stuff on their own hardware.
 
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post #7 of 24
Demand is falling so it is surprising that prices are still high, not to mention the threat of the ever decreasing prices of SSD's.
Cloud storage is also cheap/free and the average user doesn't actually need TB's of data, just a bunch of photo's and emails, because music and movies is moving to streaming services.
    
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post #8 of 24
Thread Starter 
Quote:
Originally Posted by Cakewalk_S View Post

1 word


Inflation



solved

And you can also kinda tie into the CPI (consumer price index) and some other factors...increase in oil prices = higher shipping costs, and many other increased factors.

Look around, HDD aren't the only thing that have increased in price in 3 years...

I don't think inflation is to blame. Just 2 years ago they were almost 1/2 the price.

The CPI for Jun 2011 was 225.722. For Jun 2013 233.504. A increase of 03.447%

The avg cost of a barrel of crude in 2011 was $87.04. For 2013 so far $87.13. Nominally identical & adjusted for inflation oil is less expensive now than it was in 2011.

Adjusted for inflation a $50 HDD should be $51.90. And a $75 HDD should be $77.87. However tech products tend to increase largely in power & efficacy while slowly increasing in price; since a larger part of the price is R&D compared to other commodity based consumer products. For the same type of products, they tend to fall in price dramatically until they reach EOL where the few remaining units then go up in price because of supply & demand (even though the demand is tiny, the supply is tinier).

I am sure SSD sales are influencing HDD sales, but I don't see how they could be reducing them enough for the prices to be so high. Simply because SSDs are ridiculously expensive for any large amount of storage, so they are mainly used for boot drives instead of backup or storage.

The market for large capacity HDDs has not changed, if anything it has grown with the size of data people are now creating & storing.
post #9 of 24
I would never, never, store any data on some cloud service. Don't you think the NSA would just love that? As if it hasn't already been exposed that these companies are in bed with them.
post #10 of 24
MEH the NSA knows everything anyway smile.gif
Oddly enough was watching the Simpsons movie the other night, and they called it didn't they? smile.gif
    
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