SSD Trend: Demand Up, Prices Down

HyperXKingston has been looking in its crystal ball and foresees a strong increase in SSD storage next year. The memory manufacturer thinks that prices in 2012 will drop down to one dollar per gigabyte, which isn’t much of a stretch if you consider the lower production costs (and durability) that comes with smaller manufacturing technology.

There are obviously lots of good reasons to choose an SSD over a hard drive. It do not make noise, it does not vibrate, it does not need defragmentation and most importantly: it will make your old hard drive seem exceptionally sluggish and boost your overall system speed considerably. This message hasn’t quite reached the mainstream consumer yet–mainly because the biggest hurdle remains in that today’s SSDs are much more expensive, and the average computer buyer today don’t see the capacity/performance tradeoff as worthwhile.

If Kingston’s predictions holds up for next year, SSDs will be more attractive in general and might start to be included by OEMs in new computers. One of the reasons for the prediction is the transition to a production of lower quality 19 nanometer NAND Flash. Kingston’s sales manager Nathan Su tells DigiTimes that prices will probably hit the important one dollar milestone in the third quarter of 2012.

That price threshold is important to get across and will make SSDs a better option in affordable machines, and will be enable them to replace today’s hard drives, says Su. He also believes that SSD demand will continue to grow, especially after the hard drive prices went through the roof after the floods in Thailand.

The downside of all this is of course that as prices go down, so does durability. There’s a hint of desperation with the SSD manufacturers when it comes to reaching a mass market audience, which is not least reflected by OCZ’s announcement that TLC SSDs are on the way.


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  1. Correction: lower production costs per gigabyte, not per platter (or chip area). So eventually it is more expensive to make, has lower reliability and durability , but somewhat less expensive per gigabyte.
    Also, as you can see from some messages, they invest a lot of money in Research and Development of new marketing shit how to squeeze even more money from the buyers of unreliable and outdated technologies (such as charging a few times more for a SLC chip, which is less expensive to produce compared to MLC chip with 2x capacity).

  2. Thanks for the correction. They have done pretty well in the marketing departments though. A lot of tech writers that should know better still seem to equate new production processes with “better”.

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