The recent hike in HDD prices have pushed customers to postpone their buying
decisions, adversely affecting small SIs doing business on wafer-thin margins. SIs
allege that HDD vendors are in connivance with their star partners to create an artificial shortage and subsequently hike
prices.
"This appears to be a planned move," says one SI who wished to remain anonymous. "HDD vendors and their partners have teamed up to fool
end-customers. This will only tarnish the reputation of the so-called HDD giants," he adds.
According to sources, HDD sales were at their lowest during the month of
December and hence, vendors and select dealers have found this 'smart move'
to create an artifical shortage by stocking HDDs and jacking up prices.
"Otherwise, there is no reason as to why the prices should go up," says a
source.
Some partners have attributed the price hike to a possible shortage of HDDs
soon in the international market, and that could happen because of the financial crisis
a HDD head manufacturer Read-Rite Corporation of USA is going through.
However, assemblers are calling these reasons as an eyewash to support the
price hike. Market sources say that vendors and select dealers have floated a roumor
that there will be a shortage.
"We lost our orders just because of the hike," says one assembler adding,
"if we execute the order, we will have to bear the price differences in the
market."
The hike in prices are being observed in only the leading brands like Samsung and Seagate. In fact, the prices of competing products like
Maxtor and Western Digital have not seen an increase. Some assemblers are planning
to shift to brands like Maxtor or Western Digital, if the high prices continue for in Samsunga and
Seagate HDDs.
NELSON JOHNY