Hard drive leaders blamed for widening supply gap

Big hard drive companies are to blame for the continuing supply gap saga as they are being “too stingy.”

The accusation from a disgruntled distributor follow yet more worries that the hard drive supply gap is set to widen later on in the year.

According to an article from Digitimes, demand is estimated to reach 180 million units in the third quarter of this year, which will be mainly due to increasing storage needs of cloud computing servers.

However, the five major hard drive makers will only be capable of supplying 160-165 million units, meaning the supply storage gap will grow from 10 million units in the second quarter.

The gap is unlikely to be patched up before the end of 2011.

Last month the problems in the industry were highlighted with suppliers pinning problems to the  tragedy in Japan, which seriously affected the hard disk industry.

However, disties were none too pleased then, and are now losing their patience with what they claim are big suppliers only interested in filling their pockets.

One source familiar with the situation told TechEye: “In my opinion nothing has changed. The big players such as Western and Hitachi are still clinging tightly onto their money by limiting their supply, which is having a knock on effect on smaller manufacturers who must follow their lead, as well as reduce prices in a bid to increase competition.

“This is unlike the giants who can increase their prices thanks to their measly supplies. Again we’re seeing a strain on distribution because we’re just not getting the stock.

“Warehouses aren’t full and we’re seeing the wrath from companies who want their parts

“We’re not looking forward to the third quarter when demand for these drives tend to rise. If the suppliers don’t supply we can’t distribute. It’s time these  big companies took a step back and assessed their priorities, which should be sufficient supply.

“Unfortunately for them it’s all about the money. They can only blame the earthquake for this supply limit until the industry catches onto the reality. This is that they are just too stingy to supply.”