Deadly Floods In Thailand Force HP To Raise Prices

HP vice president Tom JoyceHP vice president Tom Joyce

Photo: Hewlett Packard

HP’s Tom Joyce, blames the tragic floods that killed hundreds in Thailand for its need to jack up prices on disk drives.Many of Thailand’s disk assembling factories were destroyed by water. So there’s a worldwide shortage of certain popular drives and HP’s costs have increased by 20%, Joyce explained in letter, reprinted by The Register.

Joyce is vice president of marketing, strategy and operations for HP Storage.

EMC had also warned its customers that it would be increasing prices. But HP beat EMC to the punch, notifying its customers a month ago, The Register notes.

The products most affected are SAS and SATA drives used in products like HP’s ProLiant servers.  The floods were also blamed by Intel when it cut its revenue forecast last week.

Wonder how long it will be before HP passes the increased cost of servers onto its business customers, too.

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