“Manufacturers cut production by 20 percent in 2023, according to the TechNews report, to keep hard drive prices from falling in the face of lowered demand in a weakening global economy.”
Hard drive prices are up 10 to 20 percent since Q3 with another 5 to 10 percent expected this quarter. Western Digital’s letter blames higher than expected demand. The makers cut output by a fifth last year to prop up prices and have no plans to restore it. AI gets the blame for a shortage the vendors built on purpose.