Western Digital CEO Irving Tan dropped the bombshell during the company’s Q2 2026 earnings call. The entire calendar year 2026 production capacity for HDDs is essentially spoken for through firm purchase orders with their largest customers.
The situation goes deeper than just this year. WD has already secured long-term agreements extending into 2027 with two of their top customers, and one customer has commitments stretching into 2028. This means the shortage isn’t a temporary blip — it’s the new normal.
Hard drive prices are already at their highest point in two years, and there’s no relief in sight. The consumer market has become an afterthought — just 5% of Western Digital’s revenue now comes from regular consumers buying hard drives.
The ripple effects are massive. PC makers keep raising RAM prices. Console manufacturers are rethinking launch timelines. And anyone who needs bulk storage for personal use — NAS builders, data hoarders, home server enthusiasts — is about to feel the squeeze even harder.
The only thing that could reverse this trend? A pullback in AI investment. But with companies signing multi-year deals for storage capacity, that doesn’t seem likely anytime soon.
