NetApp, Lenovo Raise Prices, Citing Thailand Flooding Effects 96
Lucas123 writes "First HP, then EMC, and now NetApp has hiked up the price of its hard disk drives by 5% to 15%. The vendors sent letters to users stating that the flooding in Thailand had caused major component shortages, and while they tried to absorb the supplier price increases, each had to eventually give in. Lenovo also announced it has run out of certain drives for its PC systems including some popular 7,200rpm models."
Re:I'm starting to wonder about this (Score:4, Interesting)
Last time I remember something like this happening was in the early 90's when the cost for sim memory shot up almost overnight due to a fire in a chemical plant. At that time I sold about 30 used, pulled, 4 meg sims for like $125 usd almost overnight. Major panic.
But, one would think these days, buyers would have futures to end this type of supply problem.. Like every other manufacturing industry.
Re:I'm starting to wonder about this (Score:4, Interesting)
But, one would think these days, buyers would have futures to end this type of supply problem.. Like every other manufacturing industry.
Futures only set a price, they don't magically mean that a factory that's underwater will still deliver. Contracts typically have a "force majeure" clause so they don't have to deliver in this case. And they will take priority, so the more is secured with futures the worse the price changes in the open market will be. You can't make a shortage go away with contracts.