As the flooding continues in Bangkok and throughout most of Thailand, the computer industry is faced with higher pricing for computer hard drives and a supply chain that will probably be affected through the end of the year.
In Bangkok over the weekend, volunteers raced to shore up the city’s defenses against a massive flow of water that has already inundated parts of the capital and a vast swath of countryside. High tides on the Chao Phraya River are expected to peak this weekend which could inundate Bangkok with flood waters. Thailand has seen the worst flooding in decades.
Rising water levels coming in from the Gulf of Thailand were flooding riverside districts in Chinatown and making it quite difficult to channel the flood waters away from the populated and low-lying ares of Bangkok.
The computer industry has been especially hard hit by the flooding. Seagate Technology (NASDAQ:STX) and Western Digital Corporation (NYSE:WDC) have been hard hit. Both companies manufacture hard drives for computers and are second only to China as major suppliers for computer companies.
Western Digital has warned that its operations have been greatly affected by the flooding, including plant closures.
According to Marketwatch, technology research firm IHS iSuppli has estimated that worldwide shipments of hard drives could fall by 30% during the last three months of the year. Reuters reported that some retailers contacted have raised the average price on a hard drive to $90 from $60.
Other companies reporting problems with the floods are Samsung Electronics and Acer Inc. both saying sales of personal computers could be affected by the rising prices of hard drives from the region as well as the shortage of such hard drives.