Why huge drops in SSD prices all of a sudden?

[JEDI]

this week on deal sites i've seen huge sales on ssd drives.

it used to be $1/gig.
now it's $0.75/gig, a 25% drop.

at this rate, 120gig for $60 next month???

 

[Golgatha]

this week on deal sites i've seen huge sales on ssd drives.

it used to be $1/gig.
now it's $0.75/gig, a 25% drop.

at this rate, 120gig for $60 next month???

Dunno, but I'm not questioning it. Got the 512GB in my signature for $399.99. $0.78 per GB is a lot nicer than the $2.39 per GB I paid for my C300 256GB when it first came out.

 

[DooKey]

this week on deal sites i've seen huge sales on ssd drives.

it used to be $1/gig.
now it's $0.75/gig, a 25% drop.

at this rate, 120gig for $60 next month???

Vendors are clearing out their old inventory for the newer models coming out. These prices won't last long.

 

[JEDI]

Vendors are clearing out their old inventory for the newer models coming out. These prices won't last long.

but wont the newer models be around the same price point now that consumers are trained for $0.75/gig?

 

[DooKey]

but wont the newer models be around the same price point now that consumers are trained for $0.75/gig?

The newer models will not be at the same price point as these clearance sales are. Think of this like car dealers do. They offer discounted prices towards the end of a model year because the new models are on the way. That's what is happening here.

 

[tweakboy]

Just bought my Crucial M4 512GB . I shall recieve it next week. From amazon for 399.99 ,,, Crucial dropped their prices big time as this was 800 when it first came out. Others arent reducing their prices. Sammy 830 512GB is 700 to 800 dollars. Will you notice a speed difference ? nope it will be soo fast ,, everything instant and boot time 16.9 . adob cs5 first launch 1.9 seconds ,,,,, dont blow your money on a OCZ or other expensive drives,,, at the end its the same sniz,, also people love their M4's whoever gets it.

I will connect only ssd and launch repair disc as I will put my c image on the ssd. its 512kb btw is that ok, or it needs to be 4096 ? thx,,, gl

 

[tweakboy]

The newer models will not be at the same price point as these clearance sales are. Think of this like car dealers do. They offer discounted prices towards the end of a model year because the new models are on the way. That's what is happening here.

Solid box you got man. Your set until 2019 easy...

 

[Hellhammer]

The newer models will not be at the same price point as these clearance sales are. Think of this like car dealers do. They offer discounted prices towards the end of a model year because the new models are on the way. That's what is happening here.

Not true. Look at Vertex 4 for example, it's only a couple of months old yet it's selling for less than $1 per GB. Besides, what new models are you talking about? The only new controller out there is Marvell 88SS9187 and only a few OEMs use Marvell's silicon. SF-3000 series is coming at some point but that could be 2013. There are a few PCIe controllers coming out but they most likely won't have a big impact on SATA SSDs.

The reason is huge drops in NAND prices. 64Gb MLC NAND packages are going for as low as $0.40 per GB now. Also, NAND makes out the most of BOM so it controls the SSD prices. Controllers are fairly cheap in the end, their price drop would not explain a 30% price cut.

 

[sm625]

Unless The Bernank prints off a fresh couple trillion, these memory vendors could be stuck with a whole boatload of inventory that ends up selling for half of what they're getting right now. There is so much saturation in all the electronics markets that use NAND. All smartphone sales could literally STOP for the next 6 months and the world would get along just fine. That's how saturated it is. Cheap credit and cheap money have created what can best be described as a malinvestment. If they dont go on a total printing frenzy, I expect the price of a 256GB SSD to drop to $100 in the next year ($100 in slickdeals type sales).

 

[superccs]

I think it may be market saturation, all us pc enthusiasts have already gone out and baought SSDs for the last 3 years. Now most people that will use SSDs already have one. How many new PCs do you see bundled with a SSD lately? Very low huh?

 

[ss284]

I think hellhammer is right. If anything, 19/20nM flash will make things even cheaper by the end of this year. $.50 a gig is likely during a sale.

 

[Revolution 11]

So are you saying that the market is not very big so prices are dropping? Or that they are trying to expand the market by dropping prices?

.........

I guess both are the same thing. Who cares, cheaper SSDs FTW.

 

[thelastjuju]

The nature of the market.

http://en.wikipedia.org/wiki/Price_skimming

Whenever brand new, cutting edge technology hits the shelves, the manufacturers take advantage of what's called "skimming".. basically trying to maximize profit as much as possible by justifying the higher price the earliest adapters are willing to pay the premium for.. you know, to be the first on the block to have it.. and it looks like we've definitely started to move out of this phase as SSD's slowly but surely make their way towards more mainstream application.

But don't expect 120gb SSDs for $60 next months.. that would just get your hopes up..

 

[Revolution 11]

Sounds like you are implying that everyone who bought a SSD before now is a sucker and the true price has finally arrived. I won't say you are wrong about that but I am a bit of a penny-pincher. SSDs are still too expensive. : )

 

[thelastjuju]

No, certainly not a "sucker" by any means..

You pay the premium to be one of the first people with brand new technology, that's just how its gonna be.. I would imagine the types of enthusiasts who bought the earliest generation of SSD's knew this going in, and accepted that they weren't getting the best bang for their buck. They are willing to pay extra for the exclusivity that comes along with it.

Its similar to why people were willing to pay $600 for the first PS3's..

 

[KingFatty]

Sounds like you are implying that everyone who bought a SSD before now is a sucker and the true price has finally arrived. I won't say you are wrong about that but I am a bit of a penny-pincher. SSDs are still too expensive. : )

If the current price is the true price, I guess the manufacturers are still making money even with these low prices? Or, could they be losing money in desperation to get rid of the older/more expensive design, to make room for newer models that technically could make a profit even when sold at such a low price?

 

[readymix]

If the current price is the true price, I guess the manufacturers are still making money even with these low prices? Or, could they be losing money in desperation to get rid of the older/more expensive design, to make room for newer models that technically could make a profit even when sold at such a low price?

i don't think intel has made much money from ssd. judging from these results anyway.

operating income:

All other
(511) 3/31/12
(454) 12/31/11
(519) 4/2/11

All Other consists of the following:
• Non-Volatile Memory Solutions Group: Delivering NAND flash memory products for use in a variety of devices

http://files.shareholder.com/downlo...2012_Final_Press_Release_and_Press_Tables.pdf

 

[thelastjuju]

Traditionally, they make much higher profits once the product cycle starts to mature, and reaches a more mainstream/consumerist level.. the lower the price, the bigger your consumer base becomes.

You also have to keep in mind that as the technology becomes better understood, the cost to produce SSD's for these manufacturers has gone down as well, so those savings are getting passed onto the consumer :thumbsup:

 

[capeconsultant]

It is not so much paying for some type of snobby "exclusivity" in the beginning. It is not wanting to wait YEARS to enjoy the real benefits offered by the new technology. (at least in the case of SSD's) Sure the price is a bit higher in the beginning but that is simply the way things are.

Personally, I cannot imagine not having had an SSD for the past 2 or 2.5 years. I like speed!

 

[taltamir]

Sounds like you are implying that everyone who bought a SSD before now is a sucker and the true price has finally arrived. I won't say you are wrong about that but I am a bit of a penny-pincher. SSDs are still too expensive. : )

I was fully aware it was overpriced, but I got years of enjoyment from my SSDs. Also we are not all the way down, price will go lower.

This took too many years to occur to be classic price skimming, I think.

 

[thelastjuju]

It is not so much paying for some type of snobby "exclusivity" in the beginning. It is not wanting to wait YEARS to enjoy the real benefits offered by the new technology. (at least in the case of SSD's) Sure the price is a bit higher in the beginning but that is simply the way things are.

Personally, I cannot imagine not having had an SSD for the past 2 or 2.5 years. I like speed!

Can't it be a little bit of both? :thumbsup:

Nothing necessarily WRONG with this though, not at all. Because we ALL benefit from it when you think about it.

Its pretty tough for them to be profiting in the earliest growth phase.. so if it wasn't for those willing to pay the extra premium so early on, the technology might not have taken off at all.

 

[Revolution 11]

I perfectly understand the reason for buying early. Don't confuse my envy/jealousy at not being able to afford the latest/greatest as actual disdain. :\

 

[Zap]

Why SSDs are cheaper

:sneaky:

 

[Brovane]

The newer models will not be at the same price point as these clearance sales are. Think of this like car dealers do. They offer discounted prices towards the end of a model year because the new models are on the way. That's what is happening here.

I don't think this model exactly works with computer parts especially storage. The price per GB of storage drops over time the price for cars go up gradually over time.

 

[sgrinavi]

Moore's law ?