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Hard drive warranties being slashed

 
 
Jaimie Vandenbergh
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      Dec 19th, 11, 1:34 PM
WD:
http://www.theregister.co.uk/2011/12...y_period_cuts/

Seagate follow:
http://www.computerworld.com/s/artic...rranty_periods

Tch.

Cheers - Jaimie
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the conditions that make it fail." - Jerry Ogdin
 
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recursor
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      Dec 19th, 11, 1:36 PM
On 12/19/2011 12:34 PM, Jaimie Vandenbergh wrote:
> WD:
> http://www.theregister.co.uk/2011/12...y_period_cuts/
>
> Seagate follow:
> http://www.computerworld.com/s/artic...rranty_periods
>

Apparently they don't last as long when they've been underwater for two
weeks.
 
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Jaimie Vandenbergh
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      Dec 19th, 11, 2:31 PM
On Mon, 19 Dec 2011 12:36:32 +0000, recursor <>
wrote:

>On 12/19/2011 12:34 PM, Jaimie Vandenbergh wrote:
>> WD:
>> http://www.theregister.co.uk/2011/12...y_period_cuts/
>>
>> Seagate follow:
>> http://www.computerworld.com/s/artic...rranty_periods
>>

>Apparently they don't last as long when they've been underwater for two
>weeks.


How better to persuade people that reconditioned waterlogged
production lines are in fine form, than to cut the warranty from five
years to one? It's perfect!

Cheers - Jaimie
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Happiness, n.: An agreeable sensation arising from contemplating the
misery of another. - Ambrose Bierce, The Devil's Dictionary
 
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Rob Morley
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      Dec 19th, 11, 3:43 PM
On Mon, 19 Dec 2011 13:31:39 +0000
Jaimie Vandenbergh <> wrote:

> On Mon, 19 Dec 2011 12:36:32 +0000, recursor <>
> wrote:
>
> >On 12/19/2011 12:34 PM, Jaimie Vandenbergh wrote:
> >> WD:
> >> http://www.theregister.co.uk/2011/12...y_period_cuts/
> >>
> >> Seagate follow:
> >> http://www.computerworld.com/s/artic...rranty_periods
> >>

> >Apparently they don't last as long when they've been underwater for
> >two weeks.

>
> How better to persuade people that reconditioned waterlogged
> production lines are in fine form, than to cut the warranty from five
> years to one? It's perfect!
>

Of course it's not really about the quality of new production - they
just had to find some cash in a hurry because of the flood damage, and
reducing the warranty period lets them dip into the warranty
contingency fund.

 
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Henry Law
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      Dec 19th, 11, 4:53 PM
On 19/12/11 14:43, Rob Morley wrote:
> Of course it's not really about the quality of new production - they
> just had to find some cash in a hurry because of the flood damage, and
> reducing the warranty period lets them dip into the warranty
> contingency fund.


Indeed; warranty on disks which are "out there" constitute a liability
on the balance sheet which the suits can calculate quite accurately,
based on their knowledge of the actual failure rates. Reducing it gives
them an instant transfusion to the bottom line.

It's a typical stupid, short-term, market-driven
(share-option-value-driven?) thing to do, though. Everybody who knows
anything has already decided not to buy WD next time round. Will their
corporate customers do the same?

--

Henry Law Manchester, England
 
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Mark
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      Dec 19th, 11, 5:01 PM
On Mon, 19 Dec 2011 14:43:38 +0000, Rob Morley <>
wrote:

>On Mon, 19 Dec 2011 13:31:39 +0000
>Jaimie Vandenbergh <> wrote:
>
>> On Mon, 19 Dec 2011 12:36:32 +0000, recursor <>
>> wrote:
>>
>> >On 12/19/2011 12:34 PM, Jaimie Vandenbergh wrote:
>> >> WD:
>> >> http://www.theregister.co.uk/2011/12...y_period_cuts/
>> >>
>> >> Seagate follow:
>> >> http://www.computerworld.com/s/artic...rranty_periods
>> >>
>> >Apparently they don't last as long when they've been underwater for
>> >two weeks.

>>
>> How better to persuade people that reconditioned waterlogged
>> production lines are in fine form, than to cut the warranty from five
>> years to one? It's perfect!
>>

>Of course it's not really about the quality of new production - they
>just had to find some cash in a hurry because of the flood damage, and
>reducing the warranty period lets them dip into the warranty
>contingency fund.


It does suggest that they get a significant number of valid claims
within the old warranty period though. Therefore this seems to good
reason to avoid Seagate & WD drives (assuming that you can find *any*
drives for sale ;-)
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Rob Morley
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      Dec 19th, 11, 7:07 PM
On Mon, 19 Dec 2011 16:01:56 +0000
Mark <> wrote:

> On Mon, 19 Dec 2011 14:43:38 +0000, Rob Morley <>
> wrote:


> >Of course it's not really about the quality of new production - they
> >just had to find some cash in a hurry because of the flood damage,
> >and reducing the warranty period lets them dip into the warranty
> >contingency fund.

>
> It does suggest that they get a significant number of valid claims
> within the old warranty period though.


They manufacture vast quantities of HDs, we all know that these have a
limited life, obviously they expect to get some back.

> Therefore this seems to good
> reason to avoid Seagate & WD drives (assuming that you can find *any*
> drives for sale ;-)


It's certainly a factor but not necessarily an overriding one.

 
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GB
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      Dec 20th, 11, 11:21 AM
Can anyone explain to me why reducing the warranty on sales of new disks
would free up reserves for warranties on disks that have already been sold?



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Jaimie Vandenbergh
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      Dec 20th, 11, 11:38 AM
On Tue, 20 Dec 2011 10:21:14 -0000, "GB" <>
wrote:

>Can anyone explain to me why reducing the warranty on sales of new disks
>would free up reserves for warranties on disks that have already been sold?


It doesn't free up those reserves*, those are still covered by
negative lines in the expected accounts - but they'll reduce year on
year as drives come out of warranty.

The knowledge that they *will* reduce allows the company to plan to
re-allocate the cash into more interesting budgets - which can pump
the share price thus creating useful cash now.

*They're not really reserves, of course, each year they come out of
this year's accounts - like pensions, they don't store the money up in
a savings account.

Cheers - Jaimie
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recursor
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      Dec 20th, 11, 11:44 AM
On 12/20/2011 10:38 AM, Jaimie Vandenbergh wrote:
> On Tue, 20 Dec 2011 10:21:14 -0000, "GB"<>
> wrote:
>
>> Can anyone explain to me why reducing the warranty on sales of new disks
>> would free up reserves for warranties on disks that have already been sold?

>
> It doesn't free up those reserves*, those are still covered by
> negative lines in the expected accounts - but they'll reduce year on
> year as drives come out of warranty.
>
> The knowledge that they *will* reduce allows the company to plan to
> re-allocate the cash into more interesting budgets


That would be the executive's pension pots I suppose.
 
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