PC Vendors Asked to Sign Long-Term HDD Contracts

Looks like PC makers and those who supply HDDs are at something of an impasse.

With the shortage of hard disk drive units, the latter want to gain some sort of stability by scoring long-term contracts.

This does not sit very well with PC vendors, who want to keep buying units on a quarterly basis.

Their biggest concern is that long-term, one year-long contracts could inflict damage if HDD prices suddenly fall once the shortage is overcome.

After all, if they sign long contracts at current prices, they would have to keep paying those inflated prices even after the problem is surmounted.

Digitimes didn't say if the two sides had reached any sort of common ground.

What its report did mention is that the facilities affected by the Thailand flood have largely resumed production but not in full capacity. Recovery will differ from factory to factory.