Floods Cause HDD Shortages

floodThe Thai floods have had an unexpected impact on Intel’s forecasts, according to Simon Quicke’s article in Microscope.co.uk.

The floods caused a shortage of hard disc drives (HDD) causing Intel to cut its Q4 forecasts, warning investors it will miss the numbers it had previously been aiming for.

Revenue is now expected to be down to about $13.7bn.

“Sales of personal computers are expected to be up sequentially in the fourth quarter. However, the worldwide PC supply chain is reducing inventories and microprocessor purchases as a result of hard disk drive supply shortages. The company expects hard disk drive supply shortages to continue into the first quarter, followed by a rebuilding of microprocessor inventories as supplies of hard disk drives recover during the first half of 2012,” stated the vendor.

Quicke goes on to comment that the latest research from IHS iSuppli suggests that HDD shortages will lead to close to a four million unit shortfall in PC shipments on the first quarter of 2012.

Although the situation is set to improve in Q1 of 2012, the analyst house is warning that it will  take time to filter through to the supply chain, meaning it will only be in Q3 when things start to get back to normal.

Author: MPM Computer Consultancy provides IT Services, Support and Training to sole traders and small businesses in Ipswich. Bury St Edmunds and surrounding villages.