Due to the flooding in Thailand, the production lines owned by major HDD (Hard Disk Drive) suppliers such as WD (Western Digital) and Toshiba located at northern Thailand were severely damaged, especially the 3.5-inch HDD facilities. In addition, due to the devastated production lines and limited raw material supply, HDD suppliers preferred the production of 2.5-inch HDDs characterized by higher profit margins and fewer materials needed. As a result, desktop PC supply chain has faced the crisis associated with the HDD shortage. By considering the order placement and anticipated profits, HDD suppliers placed the priority on the shipment to branded vendors. Shipments of local system integrators and white brand vendors were immediately affected, recording more than 20% shipment declines in the fourth quarter of 2011.