As both companies are unable to swallow the price increases caused by the flooding
EMC and HP will increase large-scale storage system prices by up to 15% from the beginning of next year due to the Thailand floods, as both companies are unable to swallow the hard-disk drive (HDD) price increases caused by the flooding, according to ZDNet.
EMC said to date it has absorbed the price increases passed on to them by their hard-disk drive suppliers and they would continue to do so through the end of the month. "However, beginning in Q1 2012, we will be increasing hard-disk drive list prices from five percent up to 15 percent for an indefinite period of time," said the company.
HP did mention the date as to when its prices would go up, but said it would also raise prices. The company said the HDD component prices had already risen by 20%.
HP said, in a letter to its customers, they often adjust prices they charge for components based upon market conditions, and this situation is no exception. "What is different now is that some of these component prices may rise significantly, and for an indeterminate period of time," the company added.
According to HP, the flooding has led to severe shortages in HDD components, which meant that large capacity SAS and SATA drives are already in short supply.