Why Aren't SSD Prices Going Down?
Lucas123 writes "NAND flash memory makers took an economic beating from 2007 through the first quarter of 2009 due to supply outstripping demand. During that time, solid state drives dropped in price 60% year over year. But after the economic meltdown, fabricators pulled back on production and investment in new facilities and the price of SSDs have remained flat or increased over the past year, and that is not expected to change until 2011. Until that time, SSDs remain 10x more expensive than hard disk drives. SSD vendors, however, are using a few tricks to get sales up, including selling lower-capacity boot drives that hit a sweet spot in the techie/gamer market."
It's going to be really really hard to convince me that Asian electronics manufacturers aren't engaged in price fixing en masse against the rest of the world whenever a technology cost remains unnaturally high. Hell, after realizing how many times I was the victim of it with LCDs I pretty much expect it.
I mean, really, I feel like a moron for ever knowing that they allowed price fixing -- even promoted it -- inside their borders and then believing that stopped at the rim of the continent. Right now the only question is how many markets is this happening in? They're obviously very good about it, little chance the regulators in other countries will catch it let alone the easily bribed authorities isntalled there.
My work here is dung.
SSD cost is limited by the cost to refine and turn Silicon into Flash Memory.
The price will only go down as the process size goes down, currently at 32nm with Intel's Latest drives. Once it reaches 8nm or the like then the cost will truly be comparable to Hard Drives. Until then, don't expect a miracle.
fabricators pulled back on production and investment in new facilities
Joseph Smith once said that a man with one wife was blessed, but a man with more than one was cursed. I guess he meant that as the supply goes down, the more profit can be realized per unit.
Give it time.. the $/GB price will go down.. SSDs are only a few years old and they are still working on achieving density comparable to spinning-disks, instead of focusing on cost reduction.
If you're in a tizzy because SSDs are expensive, then continue to use tried-and-true conventional disk until they meet your price point.
I'm sure there are other considerations.. prob some monopoly on NAND manufacturing or something.. but that'll eventually sort itself out and cost will go down. Not like you can open a new NAND fab overnight or anything.
----- The internet has given everyone the ability to have their voice heard equally as loud.. even if they shouldn't be
They'll go down eventually if you give it time. SSDs are now just getting popular. Larger LCDs are finally affordable now, and how many years did that take? They just need more time to get the manufacturing procedure and the like down. I'm sure advances in SSD manufacturing will bring them down in price eventually. Just be patient.
The same 60GB drive I paid $230 for 6 months ago is now $130 after rebates and $160 before.
I know this topic is about SSDs, but I remember back in the day we had full height 5.25" drives that sounded like jet engines and had several platters. Why hasn't anyone made bigger platters- are we really constrained to the 3.5" form factor? I'd think they could make big platters with some extra ECC, have several platters, or even have internal platter mirroring or something l like hardware raid6 at the platter level?
OK, I think this bit from Gartner
Garnter analyst Joseph Unsworth [says] "...The point here is SSDs will never, ever be able to match hard disk drives on price per gigabyte."
is wrong. Flash is simpler than drives. The manufacturing requires less machining, materials, and human labor. I'm not saying next year or even five years out, but as SOME POINT, I am sure that memory devices like flash will be cheaper than disk drives on a per bit basis, or at least close enough that innovation on spinning drives will stop and that will allow flash/memory devices to pass them.
Anyone agree/disagree?
I'm sure there are other considerations.. prob some monopoly on NAND manufacturing or something.. but that'll eventually sort itself out
Monopolies tend to take 20 years to sort themselves out.
If your doing cost per gig, okay. If your doing cost per I/O, SSD is actually a tad cheaper. Typical 300g 10k RPM drive will net you about 150-180 IOPs. SSD will be ~70X.
When platter HD's were coming out we didn't have much of an alternative to look at, today Solid State drives have a well established competitor. As TFA states, people benefiting from these drives are a niche, the general person spending all day on facebook, youtube doesn't really see any benefit from spending extra money on a SSD. And when people do even care about performance.. well it's coming at a hefty price. I build my own pc's but while I'd like a SSD I'd rather spend the extra 100's of dollars on a much superior CPU and/or RAM that that money could spent on. Prices will take a long time to come down imo because the demand simply isn't there to push it forward. The mass majority of the marketplace just don't store MASSIVE files that need super fast access.
Well, he'd know.
April 19, 2011 - PC World Magazine
The Federal Trade Commission has launched an investigation of price fixing among manufacturers of solid-state drives. A spokesman for the FTC says that the top hard drive manufactures "have colluded to keep the prices of SSD drives artificially high." A representative from Western Digital has stated that his company takes the charges seriously and that it will fully cooperate with the investigation.
If someone says he and his monkey have nothing to hide, they almost certainly do.
Thanks to everyone shutting down factories during the recession, there is a severe shortage of analog parts, electrolytic capacitors, and some FET's. It is typical to see a 4-8 week lead time on an order of 20k. A 16 week lead time makes you Very uncomfortable and you start looking for second sources or redesigns.
Some analog/digital companies are shipping at 16-24 week lead times.
Some electrolytic capacitors are at a 40 week lead time.
And at least one major company stopped accepting new orders.
In the mean time, some distributors are starting bidding wars on parts that they do have.
Right now, demand is far greater than the supply. It is going to be at least another year before prices start to come down.
While the question of whether prices aren't being competed further down because of collusion, or just because of inescapable production costs is an interesting one(and hopefully somebody has their forensic accountants on it, just to be sure), it seems reasonably obvious why SSDs have settled into the niche that they have, and why the manufacturers are making the size/price decisions that they are.
Now that the initial round of epically bad JMicron controllers are mostly gone, and the boring Samsung reference ones are confined mostly to build-to-order options on corporate laptops, all but the ghastliest SSDs are embarrassingly superior to HDDs for the sort of random mixed read/write that makes such a difference for desktop responsiveness. At the same time, though, nothing short of alien nanotech is going to allow them to touch HDDs in price/GB. That being so, you would expect to see SSD capacities largely cluster around "enough for a Windows boot volume, with a few key applications on it; but not much more". Anything less is largely useless to the target market(or, more accurately, anything less is aimed at the embedded devices market, and probably uses entirely different connectors and isn't sold at retail) and anything more gets very expensive very fast. This is, also, the reason why a lot of the high capacity (512GB to 1TB+) SSDs that you see are actually 2 or 4 of the vendor's lower capacity boards stuck together behind a cheap RAID chip. The market for the super high capacity ones just isn't all that big, at least among systems that use SATA as a storage connection bus, so the high capacity drives being sold are practically low-volume engineering samples, just polished enough to be sold for the usual early-adopter premium.
The only real forces supporting the existence of SSDs larger than that are high-end laptops(if you only have one drive slot, you can't adopt the mixed SSD/HDD strategy), a few loony enthusiasts(if you are the sort of person who buys every highest-end video card on release day, you can probably be convinced to go for a couple of 512GB SSDs, in RAID of course, for your gaming machine) and some truly titanic databases run by the deep-pocketed(though it isn't clear how much of that is SATA connected, and how much is the directly PCIe attached stuff, which is even faster).
The links talk about China and Japan respectively. But then there is Singapore, Thailand, Malaysia, Viet Nam, Costa Rica, and I'm sure there are other countries where chip making is occurring. I really don't think the price fixing is that wide spread and even if it is, for the sake of argument, it cannot last. OPEC has tried for decades and always someone cheats - and I do mean always.
RIP America
July 4, 1776 - September 11, 2001
If supply goes up and demand stays the same prices will go down. If demand goes up and supply stays the same prices will rise. What happened was the economy dropped so they lowered their supply otherwise what could happen is the Supply/Demand curve would fall under making profit. Now as we recover demand is rising again but they are unsure about the longterm projections so they are keeping supply still low for a while.
This isn't necessarily greed unless they are bean counters. Sure you may make more per unit but if you sell more units for less then you can make more money.
If something is so important that you feel the need to post it on the internet... It probably isn't that important.
SSDs improve performance only in very specific scenarii: small random reads are their forte, large reads are OK, writes are bad, especially small random ones. On the desktop, that makes them good system drives, OK Apps drives, bad data drives, terrible log drives. On the desktop, basically, SSD are useful when booting, launching an app, loading a level or other ressources. Nowadays, I boot my PC twice a month, launch apps at most once a day, and don't really play anymore.
To complicate matters, most OSes and apps are made up of a good 50% "dead" files that are very rarely used, and also have log files that get written to frequently. Installing a whole OS, app or game to an SSD is majorly wasteful because of that. Manually segregating "frequently-read" from "frequently-written" and from "dead weight" files within an OS or app is at best cumbersome and difficult, at worst, impossible.
I'm wondering why OSes don't yet support some king of SSD ReadyBoost: it would make a whole lot of sense to use a smallish SSD as a cache for frequently-read (not written) files. One SSD maker has released a thingy that clones the first x sectors of an HD to a SSD. Though automatic and easy, that is very crude, as caches go. I seem to remember one of Linux's filesystem allows to easily use an SSD as an intelligent cache, but that filesystem is fairly marginal ( ZFS ? not sure). MS has not adapted ReadyBoost.
With an adapted ReadyBoost, I'm sure I could get 90% of the benefit of a large (64 Megs) SSD in a much smaller (16 Megs ?) one. I'm waiting for that, or, if MS doesn't wake up, for prices to go way down.
The Cloud - because you don't care if your apps and data are up in the air.
Larger LCDs are finally affordable now, and how many years did that take
The problem with that is that they cut out more than a few pixels and certainly a lot of of the quality in the panels.
Twitter supports and protects racists - by smearing their critics with the "Hate Speech" label.
It's bubblegum feature creep, the same tactic Microsoft used for years to justify prices for Windows. In the case of LCD TVs, they're using extra "Hertz" and LED backlighting (never mind the misleading marketing leads some people to mistakenly believe that the display itself is actually LEDs) to keep the prices artificially high. It's these industries' version of the fast food industry's coke-and-fries tactic: upsell the product with low-cost features or add-ons that add almost nothing to cost but add a mountain to profits. In the case of magnetic-media disk drives, they're adding more cache and tweaking this or that, which ultimately changes the total cost of production very little but helps the manufacturers stave off the price drops that SHOULD occur due to savings from mass production. In the case of SSDs, I duuno what the specific feature creep is, but you can bet that is what's taking place.
This is what manufacturers do to keep the full benefits of mass production from actually "trickling down" to consumers.
Someone is buying massive quantities of them. That's the only explanation. The enterprise is only now catching up to the benefits of low latency SSD access. You can use fewer servers and serve data with much better latency and throughput for IO bound tasks. Anyone who needs low latency random access to data (ads, search, data warehousing, OLAP, content distribution networks, hotspots in map data serving, etc, etc) are switching to SSDs right now as quickly as their budget allows.
Using a mix of flash and spinning disk technology you could build a single hybrid drive that supports fast operation by optimizing what uses flash and what uses the older tech; this would increase the perceived speed of a machine while keeping costs lower. The OS would need to support such a drive; but it would result in faster machines with reasonably large storage capacities at a lower price point. It's not really a new idea, variations of the solid state / hard drive memory mix use have been around a while.
I realize you could use two drives; but shoe horning it into one laptop form factor would make it a lot easier to incorporate into existing laptop form factors; as well as add backwards compatibility via an OS update.
I'm a consultant - I convert gibberish into cash-flow.
It depends on what you mean by SSD prices dropping.
Some manufacturers introduced some drives below the $100 mark but they were very low capacity. So the minimum price of entry dropped by the cost per gigabyte stayed about the same.
note: i'm known as plugwash most places but i screwd up registering that here somehow in the past and now can't register
SSDs will probably see a slight boost in the next year or two due to rotating hard disks finally getting around to migrating to 4kb sector sizes (which still poses compatibility and performance challenges for Windows XP, and even many Linux utilities aren't quite prepared yet)
2TB drives have just started to come out, which is actually the limit to the 512b sector sizes hard coded into many OSs for the past couple of decades. Here's a good explanation:
http://arstechnica.com/microsoft/news/2010/03/why-new-hard-disks-might-not-be-much-fun-for-xp-users.ars/
So the SSD manufacturers could do well to advertise that people still running older systems may run into a fair amount of trouble upgrading to newer hard disks with 4kb sectors. Even in compatibility mode, they've found 3x-4x slowdowns in write performance if the file systems aren't aligned with the sectors just right. Makes the decision to upgrade with SSDs sound that much better if they can really increase their performance and not have to plop down a few hundred $$ and time on OS upgrades.
(yes, of course there are similar write performance gotchas with aligning file systems to the 128k SSD erase blocks, but those shouldn't bite quite as much)
You can mount harddrive devices to directory paths in windows. SSD -> C:/ HDD -> C:/Program/Data
There's no reason for prices to go down on SSDs. Economic downturn? Not for flash chips, not when there are basically only two vendors making them, not when demand is high, and not when mass production has a low barrier to entry and is already extremely cheap... just plop a bunch of chips on a circuit board and you are done. That is what a SSD is.
-Matt
Linux has always had this problem solved, but Windows doesn't have an easy way of going about this.
Linux? Hell, *NIX has been that flexible for, oh I don't know...as long as Windows has been around? Heck, used to be that drives were so small, you had to be able to split applications from their data.
Most of Microsoft's products suffer from a cultural problem;
20_Yrs_Ago: "Hm, where should programs go? I know! Someplace called 'Program Files', yeah, with a space in the path and everything. It'll live in the root of the disk!" .....
Future_Thinkers: "Ah, um, excuse me, Mr. PHB. That might be a bad idea. See, the rest of the computing world is laying out Operating Systems like so and...."
20_Yrs_Ago: "Whoa?! Where the HELL did you come from?!?! *BLAM*"
Future_Thinkers: "Ah!! Ahh! You shot me! You shot me in the leg!!"
20_Yrs_Ago: *BLAM* *BLAM* *BLAM* *BLAM* *BLAM* *BLAM* *BLAM* *BLAM* *BLAM* *click* *click*
Future_Thinkers:
20_Yrs_Ago: "Geez, that's the fourth one this week. Where are these guys coming from?!"
"When I am king, you will be first against the wall..."
I bought my first LCD HDTV about 2 years ago. It was a 27" 720P, and I paid $650 it on a Black Friday Sale (it was normally $1,000). Now, in just a couple minutes, I can find several new 40" 1080p televisions for the same price I paid for my old one, or find 26" - 32" 1080p sets for significantly less than what I paid for mine.
LCDs (for the *equivalent* quality and features) *ARE* going down.
If I had to guess, your perception that they aren't going down is likely due to the fact that there are many new sets with higher specifications that keep the price point the same, but offer more features and quality.
If you compare 60hz 720p HDTVs from a few years ago with newer 1080p displaying at 120hz, then yeah, the prices don't seem to have changed much. However, if you ignore specifications in a price analysis, then computers haven't really gotten cheaper in the last 20 years either.
Between 2008 and the first quarter of 2009 there was a rally to the dollar. When compared to other currencies in the world, it went from 72 to 88 in the dolar index. This caused everything to drop in price in dollars. Since then, the US dollar has fallen sharply, fast enough to prevent improved technology from lowering costs. It has rebounded a little this year, but not because the dollar gained anything, but because the euro fell sharply.
But lets price it in something less erratic than the US dollar, euros or anything that comes out of a printing press. Lets price it in the most stable currency known to man: gold.
pricing the same 16GB in gold we get:
Q1 2008 0.006875 oz
Q1 2009 0.002777 oz
Q1 2010 0.002363 oz
As you can see, when priced in gold, you can see that flash has never really stopped going down in price. It simply slowed down probably due to some of the reasons explained in TFA.
It's hard to separate all the "data" from the apps on Windows, but you can separate most on Windows 7 with no tools other than the original install media.
After installing the OS and adding your "data" drive, boot to the Windows 7 rescue mode and open the command prompt, and copy the "C:\Users" and "C:\ProgramData" to the data drive, fix the links so that everything points to the new drive, and edit a few registry locations.
There are also Microsoft tools to do this during the install.
Comment removed based on user account deletion
While prices might be dropping, they're not falling to the point they would have in the absence of those gimmicks, ESPECIALLY at the low end. I've been paying very close attention to LCD TV prices (at the low end) for a year and a half; at just about precisely the points where there was an imminent and precipitous price drop, new "features" magically appeared on new models.
I'm with you on this. Friggin' rebates must have been invented by the Devil. I lambasted one of my favorite retailers for carry a $25 dollar rebate on a $700 drive. At present, my rebate threshold is $25 or 10% whichever is GREATER.
Pain is merely failure leaving the body
The cost-benefit of an SSD is still very bad. It is bad for write operations (the OS lives writing stuff all the time while using the PC), over time it loses performance and the problem of wear makes it has a limited shelf life (even with all the techniques of wear leveling) compared with an HD of the same size.
As if this were not enough, the market is saturated by junk SSDs with JMicron controllers and junky MLC memories, with performances so terrible they can be worse than a hard drive of same capacity. The buyer is afraid to take garbage for the price of luxury, and then just avoiding buying.
And the cost in most countries is really prohibitive: As an example, here in Brazil a 160GB SATA SSD Intel X25-M is US$ 1000. No kidding.
Religion: The greatest weapon of mass destruction of all time
If you think you can manufacture it in a less expensive manner, go for it.
Mmm, uh huh. Never mind the prohibitive cost of entry into a field of this sort and the ability of established players (as a general principle of markets) to shut down new competition by sheer might. In fact, they don't even need to be actively hostile, as their size dictates that merely acting in a "fair" competitive manner will kill new entrants before they grow into anything like a threat.
That's capitalism folks.
Your obviously intended implication here being "suck it up and accept it", but an equally obvious and valid implication (depending on one's view) could be that this demonstrates a serious flaw with free-market capitalism.
I don't *entirely* disagree with your implication that people should or shouldn't buy the products if they do or don't want to- within reason- but your silly rambling of context-free libertarian/free-market nonsense that implies any random Joe Public could- or should- compete with such massive operations is drivel.
"Slashdot - News and Chat Sites Deviant". (Click "homepage" link above for details).
I don't do mail in rebates. If the regular retail price is too high then I do not buy. I value my free time very highly ($100 per free hour.) So filling out a rebate form neatly enough for them to read, then going to the store to buy a stamp. (I pay all my bills online.) So if I figure I would spend 1 hour getting the rebate, that rebate would have to be for over $100 for it to be worth my time.
If I were God, wouldn't I protect my churches from acts of me?
"...packaging costs go up; because the die bonding gets harder and more complex..."
But is that really unit cost or RD cost (which gets amortized into the costs of the unit, but eventually disappear)? If the cost is developing a robot which stacks chips nicely and bonds them, but the robot costs a LOT of money to develop, then that should effect the ultimate cheapness of stacked stuff a few years after everyone buys one of these expensive monsters and starts cranking out gobs of stacked flash.
Or do you think that the difficultly will cost more over time because the number of defective units will go up?
Or does stacking require materials which are more expensive than non-stacked?
With only 1 exception, all the things I've bought with rebates were things I really wanted or would have bought anyway.
And I guess, I'be become efficient at processing them but I still hate it. I loathe doing it but cash have been tight for a long time and I don't want my systems, and experience to fall too far behind the curve.
But I dream of the day I'm well off enough to be able to tell companies that I would have bought their product if it wasn't for that damned mail-in rebate.
Pain is merely failure leaving the body
STEC has SAS SSDs for only $50/GB. That might give you some incentive to reconsider your SATA-hating ways...
...and the STEC drives have the performance to match. If what you need are IOPS and not mere space, they are more than competitive, and you don't have to worry about them tossing transactions on power loss or performance degradation as they fill.
The same happened with HDs. Sure, for maybe 5 years or so now the price is dropping and the size increasing, but everyone that used a MFM or RLL hard disk - and even the IDEs for a long time - knows that we waited very long to see the prices really going down.
It will be like everything else: with the time passing they will get market share, then decrease the price. Even the RAM memory finally dropped, so why not the SSDs? But not tomorrow, I'm sure.
--- Illogical Spock
Linux has always had this problem solved, but Windows doesn't have an easy way of going about this.
Uh, this is the programs' fault, not Windows. Programs choose to install DLLs to the Windows directory, which is furiously proscribed by basically everyone, unless you're updating an actual system component. Programs choose where to open their file dialog; some are hardcoded, and some are not. You can change the location of the Documents and Settings folder to relocate user accounts; many programs, including the entire Microsoft office suite allow you to change file save locations. As another poster has pointed out, Windows now supports mount points; but even in DOS, you could use assign and subst to turn folders into virtual disks and disks into virtual folders, I forget which is which.
So indeed, Windows has long had an easy way of going about this, but many windows applications pervert it. And meanwhile, I've had plenty of apps on Unix which always opened their file requester at the root, rather than $HOME or the cwd, so Linux doesn't exactly "solve" this problem either. You can mount your own filesystem on /usr/local, but if all the scripts point to /opt, you're either going to be editing a lot of scripts (with find -exec and sed -e, maybe, but still) or you're going to have to install it where it's meant to be installed. And a lot of the time, a symbolic link doesn't produce the desired result, so you can't use that as a solution either.
"You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"