HDD prices soar by 25-30 percent

HDD prices have once again rocketed and resellers across the country are sending 'distress signals' to vendors. This time prices have shot up by as much as 25-30 percent. This is despite the fact that just a month ago, vendors had increased prices by about 15 percent. 40 GB HDDs, which were selling in the range of Rs 4,200-Rs 4,400, are now available between Rs 5,200 and Rs 5,400. In some places, they are even selling at Rs 5,600. 

While resellers are pretty much disappointed at this hike, they do admit that it has become a regular phenomena at this time of the year (OND quarter). Vendors, on the other hand, plead helplessness citing reasons of worldwide short supply in HDDs due to increased buying from OEMs for the Christmas season. In addition to this, there is a shortage of a chip-based component that is used in HDD manufacturing.

Atul Rawal, COO of ACI Infocom agrees about the reasons given by vendors for the shortage. “The demand-supply gap has also increased because of the shortage in supply of a chip that gets used in HDDs. Very few companies manufacture these chips globally and large consignments of these chips are getting supplied to cell phone manufacturers resulting in a shortage,” he informs.

Discussing the after-effects of this hike, Rajkumar Chhajed of Mumbai-based Excel Infotech says, “Sales will take a beating as this is too steep a hike this time.” However, Pune-based Deepak Oswal of Blue Point feels, “Overall the price of a system will not increase by more than Rs 200-Rs 300, as prices of few other components like memory have gone down.” However, Deepak feels that the price-hike is exaggerated. Similarly Rakesh Jain, MD of Chennai-based Supreme Computers says, “I believe this hike is abnormal as every year the increase in price around this time is about 10-15 percent.” Rakesh is of the opinion that prices would fall again within by November-end.

However, Sanath Babu, MD of Bangalore-based Sri Durga Enterprises feels this hike may actually help partners to make some additional money. “I think this is the right time for partners to make as much as $15 to 20 per unit in the current scenario.” According to him, partners can sell the stocks lying with them at the current high prices, thereby making good profit in the bargain.

Interestingly enough, though this phenomena occurs year after year, one is yet to see serious effort from vendors to find a solution and bridge the demand-supply gap.

GOLDIE With inputs from SUNILA PAUL in Bangalore