Hard Drive Vendors Pushing for Long Term Contracts with PC Makers

Paul Lilly

Hard drive makers put most of their eggs in a single basket by building the bulk of their manufacturing facilities in a flood prone section of Thailand, and that strategy came back to bite them on the backside when severe floods earlier this year dismantled their operations. As hard drive makers look to get back on track, they're coming up with various strategies to ensure no more monetary losses.

One of those strategies is having PC makers sign long term HDD supply contracts, DigiTimes reports . HDD vendors want PC OEMs to agree to one-year buying contracts that would lock them into specific prices and volumes for the next 12 months. PC makers are understandably hesitant and fear that once operations are fully restored, hard drive prices will take a nose dive.

This isn't the only tactic HDD vendors have been toying with. Both Seagate and Western Digital recently reduced their hard drive warranties, in some cases down to just one year (Seagate Barracuda, Barracuda Green, and Momentus hard drives).

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