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HDD price to remain high until 2014

NyteOwl

Well-known member
Joined
Aug 4, 2008
Messages
871
Location
Nova Scotia
Need to organize a one week boycott, as international as possible - nobody by any storage devices for 1 week. See how they like it then.
 

ultraman7k

Well-known member
Joined
Oct 16, 2009
Messages
525
Location
Surrey, B.C.
Arrgh, I need to buy a drive to replace one of my failing ones...I was really hoping they would start going down.
 

AkG

Well-known member
Joined
Oct 24, 2007
Messages
5,283
Need to organize a one week boycott, as international as possible - nobody by any storage devices for 1 week. See how they like it then.
It would be -at best- just a blip on their radar. The big boys / oem mfg'ers are sucking up everything they can get their hands on (and most now have multi-year contracts in place to ensure THEY get first dibs on anything made)....this is not a demand issue...its a supply issue. As in lack of it. Plus....after that week is up...peeps would go back to buying either Brand A or Brand B....and nothing would change. :sad:
 

Galcobar

Well-known member
Joined
Dec 18, 2009
Messages
430
Location
Richmond, B.C.
It would be -at best- just a blip on their radar. The big boys / oem mfg'ers are sucking up everything they can get their hands on (and most now have multi-year contracts in place to ensure THEY get first dibs on anything made)....this is not a demand issue...its a supply issue. As in lack of it. Plus....after that week is up...peeps would go back to buying either Brand A or Brand B....and nothing would change. :sad:
And price-wise, those big contracts which assure the OEMs of supply are locked in at high prices. They're paying a premium to ensure supply, and due to the contract that premium will actually increase as supply starts to return and average manufacturing cost drops. Thus the hard drive manufacturers have no incentive to prioritize the retail market over the OEM market; retail contracts are short-term and therefore would drop in price sooner than the OEM contracts (if they were equally supplied).

In economics, the term is "sticky prices."
 

chrisk

Folding Captain
Joined
Jul 12, 2008
Messages
7,540
Location
GTA, Ontario
Anyone who thought prices would fall right away were fooling themselves.

As for retailers marking up drive prices a bit, what should we expect? If people are willing to spend $XXX on a drive, then thats the price they should set it at. They are in the business of making money. The margins on computer equipment are also pretty thin as it is, so if they can find a product that people are willing to pay a premium for you can bet they will charge it.
 

b1lk1

Well-known member
Joined
Feb 3, 2007
Messages
2,750
Location
Lindsay, Ontario
The problem I have with retailers is that within the hour of the announced shortages, all retailers doubled prices on stock they already had claiming it was due to shortages that were not even physically realized yet. THEN, Linus came on here chiming how it was fair and reasonable practice since they had to pad their future profits against the lost profits. Considering they have lost hardly a cent during this manufactured crisis and most likely they turned more profit, it is hypocritical of ANY retailer to claim they had to and that they are not making the same or more profit.

That is my problem with it.
 

chrisk

Folding Captain
Joined
Jul 12, 2008
Messages
7,540
Location
GTA, Ontario
I understand what you are saying b1...since they claim 'prices are high because of shortages', then the same logic should apply when the supply rises again.

But I guess retailers just can't come out and say 'we have left the prices high because you people were willing to pay high prices, so we decided to make some more money on the drives.'
 

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