Intel solid-state drive price cuts enough?
Intel has slashed solid-state drive prices, but probably not enough to sway many consumers.
Intel's mainstream, and currently most widely available, 80GB X18-M was cut to $390 from $595--about a 34 percent drop in price. But paying almost $400 for an 80GB drive may still be too much to ask of consumers when, for example, a 160GB, 7,200-rpm laptop hard-disk drive from Toshiba can be had for less than $100 on Amazon.
Solid-state drives, particularly the newest generation of SSDs, typically offer much better performance than hard-disk drives.
Hewlett-Packard, one of the largest users of Intel solid-state drives in both consumer and business laptop lines, provides an even more stark contrast. Adding an 80GB Intel SSD option on the 13-inch HP Pavilion dv3z laptop increases the price by $480 over a 250GB, 5,400-rpm hard drive.
On the desktop it's not much better. Because Intel SSDs benchmark so well, they compete with the fastest hard-disk drives. But they fall short on price per gigabyte.
A 300GB Seagate Cheetah very-high-performance 15,000-rpm hard-disk drive, for instance, is priced at $466.99 at CDW, a major online reseller. (Other resellers sell the drive for less.) The Seagate drive is virtually the same price as the Intel 80GB SSD yet offers vastly more capacity.
Intel also said it is selling its newest laptop-use 160GB X18-M/X-25-M solid-state drive for $765. Its high-performance 32GB X25-E and 64GB X25-E for servers are priced at $415 and $795, respectively.
Brooke Crothers has served as an editor at large at CNET News, an editor at Dow Jones' Asian Wall Street Journal Weekly, and a senior editor at InfoWorld. His CNET blog covers chip technology and computer systems, and how they define the computing experience. He also contributes to The New York Times' Bits and Technology sections. He is a member of the CNET Blog Network and is not an employee of CNET. Disclosure. Follow Brooke on Twitter @mbrookec. 





BTW, the comparison to flash drives isn't even apt. High end flash drives(ie. the kind that rarely are given away as promo items) top out ~30MB/sec read speeds and many of the cheap ones barely top 12MB/sec. Meanwhile you are comparing this to a drive that can top out at upwards of 200MB/sec read speeds and consistently >120MB/sec. Your comparison would be like asking why anyone would buy a Tesla Roadster which costs $109K when you can buy a used Geo Metro. The type of person to buy a Geo Metro probably isn't even in the market for a sports car. The Intel SSDs are clearly designed for a high end market (ie. a niche market) and hence your comparisons to a USB flash drive that at best case scenario is probably a 1/10th of the performance is a silly comparison.
That being said you are incredibly ignorant if you don't see the market for high end SSDs. Take for example a web server where you are more concerned about I/O performance than capacity. Instead of having a huge RAID array with *dozens* of drives one could replace a RAID array with a single SSD. If you are looking at I/O price per dollar SSDs were already decently priced already.
Finally, I think that while you may be holding out for SSDs to reach price per GB parity I think most people will not be waiting so long. Once SSDs hit a price premium that people consider reasonable for the benefits that SSDs offer they will make the leap. Most people didn't wait for TFTs to reach price parity because once they dropped below a price point they were willing to pay they considered the benefits worth the additional cost. The same will be true for SSDs. While the current economy will force people to wait a bit longer to adopt SSDs, but the days where people were giddy for larger HDDs are over.
Except for people doing 3d modeling, video editing, or media servers *most* people are clamoring for more capacity anymore particularly in the consumer market. With the down economy I have been doing a lot of freelance computer work and in the process of backing up people's data I have discovered that a lot of people aren't even filling up 120GB HDDs never mind 500-2000GB HDDs. I've encountered a lot of people who would find 80GB of storage plenty. With SSD prices dropping 50-80% a year we will probably see a comparable drive selling for <$100 in about a year.
While I agree that the economy will probably slow the uptake of SSDs in the wider consumer market if the current trend of falling prices continues I don't think that the cost per GB criticism is going to keep people away for more than about a year or so. Given a choice between performance and capacity I think a lot more people are going to go for speed.
I have to differ with you on the overcharging argument. I can buy a 64GB SSD that will be comparable or superior to a 74GB 15K RPM drive in virtually every spec and the SSD only costs about $20 more. I can buy a 256GB SSD for ~$460, which is the same price that CNET noted that a 300GB 15K RPM drive is going for. Considering that the SSD gets considerably better access times I don't find the price premium very big at all. I will agree that Intel's SSDs aren't well priced, but Intel isn't the only vendor of SSDs. For the enterprise/prosumer market SSDs aren't much more expensive than competing HDDs. At least CNET was smart enough to compare SSD prices to 15K HDDs for a change, but I think that people like yourself need to do more research before jumping to conclusions that Intel's price points mean that all SSDs are expensive for the performance that they offer.
The next generation solid state drives from Intel/Crucial is really where it's at. Unfortunately it'll probably be about 1 to 2 years before they'll come down to reasonable prices if ever. 250 megs read and 250 megs write sound pretty sweet though. But probably not worth $1000. :) It'd be cheaper to get 12GB of DDR3 ram and pre-load everything into memory with Vista.
Intel should just go with Walmart economics instead of Apple economics. There is more at stake than making a proft. :) There is market monopoly. Just ask Microsoft. ;)
Now Microsoft can charge whatever it wants for Windows for like EVER now. Intel should be smart about this.
Ultimately I think that Intel realizes that they have strong name recognition and therefore it probably isn't in their best interests to try to sell things cheap if they can reasonably make more money at a higher price point. Intel at least with desktop CPUs has *never* been known for trying to make the best value products and that strategy has worked well for them. The point of a business is to maximize profit NOT to maximize market share. At the end of the day while increasing marketshare is nice shareholders are most interested in interesting profits. Furthermore, the analogy to software isn't so apt. In software particularly with a desktop operating system there is a need to have a minimum market share to keep the amount of software sufficient to maintain a viable option to sell to customers.
Typical lame cnet. A 320GB 7200rpm laptop drive can be had for $85 from New Egg or Mwave. It's like you guys don't even try to do this stuff right. Reading cnet is like the old days of walking through CompUSA and just constantly overhearing misinformation from their employees.
I agree with you that the price for these units is too high for most average consumers, but it has little to do with the higher margin because the SSDs in question really are more expensive to produce. You really are getting something for the extra cost although as indicated by the vast ignorance of CNET readers I think that the vendors like Intel selling these SSDs have a lot of potential customers to educate.
- by sanwar2 July 31, 2009 12:08 PM PDT
- I just recently heard that the SSDs, should be almost affordable by December of 09. Is that a correct speculation?
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