Page 8 - october_093019.indd
P. 8

OCTOBER 2019       TAP TIMES          -8-

                      Casebook (from 7)

        of computers and memory chips relied al-
        most solely on hard drives from Thailand,
        including giant Samsung.

        Lower sales expected
        Samsung Electronics, the largest memory
        producer, said at the time it expected the
        fl oods to lower sales of personal comput-
        ers and prices od DRAM used in PCs, ac-
        cording to Reuters.

        Lenovo, one of the largest computer mak-
        ers, said it also believed there would be a
        problem getting hard drives through the
        fi rst quarter of 2012, due to the fl oods.

        At the time, Thailand was the mecca for
        hard drive production, although there were
        smaller plants in China and Malaysia.

        Seagate, Wester Digital aff ected
        The leading disk drive makers, including
        competitors Western Digital and Seagate
        maintained large production facilities in
        Thailand.  In fact, WD had to close its
        plants due to the fl ooding, and Seagate
        warned it might face parts shortages even
        though its plants were operating.

        This disruption was mostly unforseen,
        causing OEMs that depended on hard
        drives as a mandatory component for their
        computers to formulate new strategies
        that not only prepared their buyers to buy
        in multiple companies, as well as multiple

        The fl oods caused physical damage to
        Thailand of some $46.5 billion, and ad-
        ditional revenue losses at factories that
        shuttered production because of their in-
        ability to operate during the monsoon’s.
        chaos.  Next page
   3   4   5   6   7   8   9   10   11   12   13