Thailand floods may hurt shipments, increase prices for PC makers

DaMan

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The devastating flooding in Thailand could hurt HP, Lenovo, Dell and Microsoft during the fourth quarter of this year, IDC said in a recent report. The research firm originally projected shipment growth of 5.1% for the PC industry during the quarter but it now expects PC shipments to fall between 2.2% and 3.4%. Moving into 2012, IDC said shipments could drop as much as 13.4%. “A lot of these plants are still under water, and it’s unclear how much damage they will find when the water recedes,” IDC analyst Loren Loverde explained in an interview with <em>Bloomberg</em>. “It’s also unclear how quickly the cleanup can begin and how much time it will take to bring in replacement parts to rebuild.” A recent report from Goldman Sachs also suggested that PC shipments could drop 8.5% during the first quarter of 2012. Hard drive manufacturers Western Digital and Seagate Technology both have plants that were flooded in Thailand. Seagate’s CEO Steve Luczo told <em>Bloomberg</em> that hard drive prices from his company could jump $10 to $25. “If you’re thinking of buying a laptop for Christmas, I’d buy it now,” Luczo suggested.<span id="more-112075"></span>
<a href="http://www.bloomberg.com/news/2011-11-10/pc-makers-microsoft-may-be-hurt-as-floods-crimp-sales-idc-says.html">Read</a>
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