Rupee slide, floods hit computer supply

If you are planning to buy a PC, this might just be the right time. In the coming few weeks, computers are likely to become costlier and in short supply in India, due to the double impact of falling rupee and flooding of factories in Thailand of manufacturers, such as Toshiba, Seagate and Western Digital. As a result, PC makers have cautioned about the supply chain disruptions in India. "In the coming weeks, we will see some impact on most companies. It will impact pricing and unfortunately cause delays in deliveries," said Amar Babu, country manager for Lenovo in India. A 500-GB hard disk with an MRP of Rs 1,575 is selling at Rs 4,500 (thrice the price) at Nehru Place, India's largest IT market. "We may not get the volumes or the mix. Customers need to be a little flexible. For example, sellers may not have a 320-GB laptop model but a 500 GB may be available," added Babu. About 13 million PCs were expected to be sold this year, an estimate likely to be downgraded. "We may see supply lagging almost 40% to demand for computers in the coming months," said Alok Bharadwaj, President of Manufacturers Association of IT industry. "The black marketing of hard disks is a challenge. It will also hit the assembled computers market hard. Bulk orders wouldget affected, as no large player would be able to meet them," Bharadwaj added. Dell and HP, largest players in the Indian PC industry have also cited concern. "This puts the industry in an allocation environment at least through Q1 (2012)," said India spokesperson for Dell. "We have teams working with impacted suppliers to manage our HDD supply chain and qualify new sources of supply. Our goal is to mitigate any impact to our customers," he added. Global HDD shipments in the fourth quarter are projected at about 125 million units, down from 175 million units in the third quarter, as per analyst firm iSuppli. It means shipments for the December quarter would match the industry low, three years ago, when the market tanked, due to recession. "We are appealing to the government and consumers to allow longer delivery period to combat the sudden shrinkage in the supply situation. Suppliers should be spared of penalties or strictures on delays," added MAIT's Bharadwaj.