Hard drive prices could start falling next month

According to Seagate's CEO, production of mechanical hard drives won't completely bounce back from the Thai floods for at least another year. Will prices remain sky-high—or even go further up—over the coming months? A new report by DigiTimes says we might actually see prices go down in December; the site adds that its sources also expect an "obvious improvement" to the shortages in January. Here's what's reportedly going on behind the scenes:

Several channel retailers are already preparing to dump their hard drive inventory, which was piled up due to concerns over potential shortages, in December as the imbalance between supply and demand is not as serious as originally expected and the retailers are trying to shed some stock to avoid from being hurt as hard drive capacity will be gradually restored in January and February 2012, according to sources from channel retailers.

That sounds encouragingly optimistic, although of course, prices have a long way to go before they're back to pre-flood levels. Earlier this month, we found that some hard-drive models had more than doubled in price. There's a chance that both DigiTimes and Seagate's CEO are right, though, and we could see gradual improvements over the short term, with a full recovery taking considerably longer.

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