I think its ridicilous their just ripping us off. They can mass produce,, its just they want to bank on it... I think prices will remain what FishAk said until 2012 thats for sure...Imagine the day they cost as much as todays hard drives with same space like 1TB for you movie porn mp3 leeches. I dont need that much personally..
This is honestly not the case. A fab costs billions of dollars, and there are only so many of them in the world... while the actual "cost of production" is low, but the cost of setting up a fab (which only has a few years worth of production before its completely obsolete) has to be divided amongst all the units it will produce. A fab that cost 6 billion dollars, will operate for 3 years, and produce X waffers a day, has to divide the 6 billion it cost between all the die it produces just to be able to cover equipment cost, then there is the cost of employees, design teams, day to day manufacturing, repairs, etc etc.
You can literally count how many such fabs exist (in the highest miniaturization level) in the entire world on one hand. And you have a LOT of demand for it, there are 6 billion people in the world and growing... so those few fabs have to supply enough for all of them (not all own SSDs, but a sizeable portion do, and those that don't... well, businesses running servers want those too... banks, email servers, etc etc... everyone wants them, cost is the only reason to use a spindle drive over an SSD).
The various companies are building new fabs at breakneck speeds, remember this is a VERY new technology (or rather, old tech that just got good enough to have mass market demand)... but we are not at saturation point yet.
Now... COULD they sell it for less and still cover their costs? yes, but then they will have less money to build extra fabs, AND you will NOT be able to find any in stock, at all. Besides which, why SHOULD they? they are still selling every single chip that comes out of those fabs, that means demand far outstrips production... they are not intentionally hampering production to keep it this way, but they are not giving away their chips for less then their actual market worth.
Now, intel DOES have a history of impeding tech to maximize returns... but remember that this market is not one with a monopoly. There are multiple companies out there that manufacture MLC chips and they are in brutal competition, if they were to try and impede production intentionally, it just means that their competitors will overtake them... what you describe only happens in a monopoly, or when there is collusion (illegal conspiracy to fix prices). Those things DO happen btw... the RAM cartel was when the only 5 companies in the world actually making ram chips were busted, in court, for conspiring to fix prices at very high price... then 10 years later busted for conspiring to sell BELOW COST (they were actually selling at a loss) in order to kill off a newcomer that threatened them (RAMBUS)...
mmm, I think I just shot my own argument in the foot with those two examples... since AFAIK we are talking about the exact same companies... err... I THINK they are not doing it again?