Hard Drive Prices Up 150% In Less Than Two Months

zyzko writes "The Register reports that hard drive prices (lowest average unit prices) have rocketed 151% from October 1 to November 14th. The worst days have seen over 5% daily price increases. This is commonly attributed to the floods in Thailand, but there are concerns of artificial price fixing and suspicion that retailers or members of the supply channel are taking advantage of the situation." The number varies when you break it down to individual drives, but it seems to be in the right ballpark. Anecdotally, the drive I picked up on Oct. 14th would cost me 135% more today. The flood waters in Thailand have partially receded, but aren't expected to be completely gone until early December. The damage to the country's economy and property is measured in the tens of billions.

Comments

Economics 101

[jamesl]

... but there are concerns of artificial price fixing and suspicion that retailers or members of the supply channel are taking advantage of the situation.

Falling supply in the face of unchanging demand will cause the market clearing price to rise. There is no such thing as artificial price fixing. And of course every one in the supply chain will raise their prices. That's the way it works.

This way, there is product always available for emergencies -- your drive died and you need a replacement no matter the cost. The alternative is no drives, no where, no matter what.