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Intel warns sales will be hit by Thai floods

Gets caught up in hard drive shortage
Tue Dec 13 2011, 16:39

CHIPMAKER Intel has warned that its current quarter revenues will be hit by hard drive supply shortages.

Intel joins a number of system vendors including Acer, Dell and HP in warning that its sales will be hurt by the devastating floods in Thailand that have left much of the hard drive industry reeling. As system vendors are unable to find hard drives to finish complete systems, every other component is put on hold, including Intel's processors.

Tom Kilroy, a senior VP at Intel told analysts, "In the last two weeks, as the supply became more apparent, we saw a substantial change in our order rate. Most of our customers are concerned the shortage will continue - especially through the early part of the first quarter."

Kilroy's announcement sent Intel shares down by almost five per cent, however the firm also said the hard drive shortage could speed up solid state drive (SSD) adoption. While Intel's SSD range is one of many on the market, the firm also supplies NAND flash memory chips to a number of its perceived rivals, such as OCZ and Crucial.

Seagate has said it is largely unaffected by the floods in Thailand, while Western Digital has restarted production in one of its plants in Thailand. Both firms have said that it will take many months before supply will again be able to meet demand.

Intel is seen as a bellwether of the information technology industry and its admission that it hasn't come out unscathed from the Thai floods has underscored the inter-dependence of computer component makers. µ

 

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