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March 15, 2009 8:30 AM PDT

Samsung: Solid state will match hard-drive price

by Brooke Crothers
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Samsung expects solid-state drives to reach price parity with hard-disk drives within the next few years amid steep annual price declines in flash memory chips.

Solid-state drives, which use flash memory chips as the storage medium, typically offer much better performance than hard-disk drives. But they cost more. Currently, opting for an SSD instead of a hard-disk drive will add anywhere between $100 and $600 to the cost of a laptop, depending on the capacity of the SSD.

Dell's Alienware Area-51 laptop (above) and Dell's Studio XPS 16 come with a 256GB solid-state drive option

Dell's Alienware Area-51 laptop (above) and Dell's Studio XPS 16 come with a 256GB solid-state drive option

(Credit: Dell)

In a phone interview, Brian Beard, flash marketing manager for Samsung Semiconductor, said reaching price parity with hard-disk drives is just a matter of time. "Flash memory in the last five years has come down 40, 50, 60 percent per year," he said. "Flash on a dollar-per-gigabyte basis will reach price parity, at some point, with hard disk drives in the next few years." Samsung makes both SSDs and HDDs.

Beard explained why a cost gap persists between solid-state drives and hard-disk drives. "The difference in cost is fundamentally very different. A hard drive has a fixed cost of $40 or $50 for the spindle, the motors, the PCB (printed circuit board), the cables," he said. "To make the hard drive spin faster (increase speed) or to add capacity doesn't really add a lot of incremental cost to the drive." (The price for most laptop-class hard-disk drives on the market is between $60 and $100 at retail, Beard said.)

"When you contrast this with SSDs, they also have a fixed cost for the PCB and the case and the controller, which is lower than the fixed cost of a hard drive," according to Beard. "But as you scale the capacity of the SSD up, the cost scales linearly. For example, if the spot price of the flash chip itself is $2, a 64GB drive is going to cost $128 just for the flash and then you would add the fixed cost of the PCB and the case, he said. So, the cost will double as you double the capacity, according to Beard.

This argument, however, works in favor of lower solid-state drive pricing too--as flash memory prices drop and densities and capacities increase. And Beard added that "there's a lot of pressure for OEMs (PC makers) to match the price to the traditional pricing in the hard-drive industry." Samsung is also a PC maker and faces the same pressures.

And what will happen to the price of SSDs this year? "The rest of the year is quite unpredictable. Because the SSD price is directly tied to the price of flash, no one knows. Everyone is just giving their best guess as to what will happen in the flash market," he said. To date, flash memory prices have dropped so much that chipmakers can't make money.

"Every major flash manufacturer posted major losses in Q4. So flash and SSD manufacturers are under a lot of pressure to make a profit," Beard said.

Where is the price-per-gigabyte sweet spot for solid-state drives going to be later this year? "On the business side, the sweet spot is 64(GB) moving to 128. On the consumer side it's definitely 128 moving to 256," he said.

Samsung SSDs with a capacity of 256GB have been shipping since January. Dell offers these drives in some laptop models already. 256GB drives are just now "rolling out into mass production," Beard said. "We'll start shipping it to some of our smaller customers about right now."

Note: Currently, on a Dell Studio XPS 16, opting for a 128GB SSD instead of a 7200rpm 320GB HDD adds $200 to the price of the system. Opting for a 256GB SSD adds $400.

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.
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by holywarrior007 March 15, 2009 9:18 AM PDT
"So flash and SSD manufacturers are under a lot of pressure to make a profit," .

What does it mean. Price per gigs go up or down in this year?
Reply to this comment
by Lerianis3 March 15, 2009 2:13 PM PDT
I'd say DOWN for both SSD and flash memory. We are still in a recession, regardless of the need to 'make a profit'. Really, I'd LOVE to have a SSD in my computer, at least as my main "never gets anything or barely anything written to it" drive.
by rucknrun March 15, 2009 9:18 AM PDT
I want to slap one of these in my Playstation. That would rock!!
Reply to this comment
by BtmnHatesRbn March 15, 2009 10:47 PM PDT
What does "rock;" mean? And you're still using an original PlayStation? How do you get a hard drive in it? Do tell.
by Jon March 15, 2009 9:46 AM PDT
Seems like to me the logical thing to do is lower the price so more of us will/can afford to buy . . . volume is essential to good sales, but quality and service are a lost art it seems. I would be willing to pay a few more dollars for good service and better quality of product. But, not for shoddy workmanship or bad service. Those days are long gone for me. My money is too tight to over pay for crap.
Reply to this comment
by mike.gw March 15, 2009 10:29 AM PDT
Looks like traditional HD manufacturers better start snapping up or partnering with Flash manufacturers!
Reply to this comment
by blurble March 15, 2009 11:38 AM PDT
Price decline my butt. Memory has been cheap since forever. They just realize in this economy no one is willing to be ********* with high prices anymore. Those idiot news articles claiming throngs of people snapping up $2,000 plasma TVs in this economy, is a crock. The people who buy these things are KIDS, who rely on mommy & daddy for money to upgrade their PC to to waste their life playing the latest *** video game. Well, parental units are unemployed, and if they can't find a job, good luck for sonny boy. You're more likely to see a 90 yr old begging to mow people lawns for cash due to low SSI paychecks. And with all those businesses going under, they're not spending on IT either. CISCO is even going under.
[CNET editors' note: Prohibited content deleted.
Reply to this comment
by Lerianis3 March 15, 2009 2:16 PM PDT
Actually, it isn't a crock. I have a friend who works for Best Buy.... he has been SHOCKED at how many adults are buying LCD TV's even in this economy. I think that most of the 'problems' are severely overstated in most of this country.
by BtmnHatesRbn March 15, 2009 10:49 PM PDT
Actually, the economy isn't bad. Stocks are just down. Unemployment claims are matching levels during the previous four years, and people are still making the same amount of money. Go ahead, drink the Kool-Aid of media-created bad economy. Even Soetoro/Obama has come out and said he economy isn't as bad as been falsely reported.
by texaslabrat March 16, 2009 3:45 PM PDT
@BtmnHatesRbn

LOL. I hope nobody's relying on you for financial/economic advice. I could post a list of data that proves how foolish your assertions are, but I imagine the average reader here already realizes that. I will leave you with one number: 9.4% unemployment nationwide...and it's been quite a while (25+ years) since we've seen those kinds of numbers.
by nutso101 March 15, 2009 1:14 PM PDT
I agree. They are in it just for the profit. There is no way flash memory should be double that of regular let's say a hard drive unit. There is no motor to spin, less power to consume, less space to use and it would be more cost effective to install. Once they realize the consumer won't spend they will start to lower prices. Don't be greedy . The bottom line.
Reply to this comment
by john_profit March 17, 2009 12:09 PM PDT
"They are in it just for the profit."

And why else are people in business? Genius!
by dream_fly March 15, 2009 3:12 PM PDT
"Solid-state drives, which use flash memory chips as the storage medium, typically offer much better performance than hard-disk drives"

From what I learned, only READ speed is "typically" faster.
Reply to this comment
by BtmnHatesRbn March 15, 2009 10:51 PM PDT
You learned wrong. You don't read enough of I, Cringely. SSD is low-power and doesn't have to "whirl" up to access data, and stays cool, without heating up. Again, you learned wholly wrong. Did you learn this from a Science Channel show or something, or an actual computer science class at a university?
by dream_fly March 16, 2009 12:32 AM PDT
Well, take a look at this: http://www.tomshardware.com/reviews/ssd-memoright,1926-7.html
Most SSDs are pretty slow. The more interesting is the Application Performance which the best SSD couldn't match the WD VelociRaptor; and they didn't test with the 15K drives.
So now it's your turn to give us some typical, not theoretical proof. I'll happy to stand corrected.
by Peter Glaskowsky March 16, 2009 1:22 PM PDT
Cringely is hardly a reliable source for technical information.
by texaslabrat March 16, 2009 3:36 PM PDT
@dreamfly:

That article is nearly a year old. There has been a completely new generation that has been released since. Today's SSD's, in general, completely destroy traditional HDDs in both writing and reading. That's why there's such a push to put them in high-throughput enterprise applications (see Sun's new product lines) as well as laptops where the typical 5200rpm (or slower) drives that are mandated by power consumption concerns are just abysmally slow with today's multimedia apps. Try looking at some benchmarks from late 2008 or preferably 2009 and you'll see what I mean ;)
by gerrrg March 15, 2009 3:43 PM PDT
SSD prices may be going down 40-60% annually, but HD prices are also dropping an average 40-45% annually.

The premium one pays for SSDs is so high, I think it'll take more than a few years - more like 5+ - before SSDs are competitively priced to hard drives. I wish it wasn't so - as I'd love to have a semi-permanent backup solution with no moving parts to break - but I seriously doubt that SSDs will become price competitive with HD.
Reply to this comment
by Scopip March 15, 2009 7:43 PM PDT
Your statement is only true if you are talking about data backup / media files.

60 Gig SSD's are already at $100. It is totally ludicrous they are still building laptops that have platters. It should already be industry standard to have encrypted SSD drives on all portable devices.
by BigGuns149 March 15, 2009 10:48 PM PDT
Only 40-60%? I would peg the drops in SSD prices closer to 50-75%, but even if your more conservative estimate is correct SSDs are still catching up and at some point will reach parity with HDDs. If we are looking at enterprise grade 15K HDDs the future is basically today because SSDs are already rather price competitive in that market, but standard consumer drives will clearly take several years more to reach parity.

Samsung was a bit vague into what they meant by the "next few years," but I don't think it is a question of IF SSDs will become price competitive, but when. Unless there is some yet unknown limitation that caps SSD capacity or a real huge revolution in HDDs I don't see anything that will stop SSDs from eventually reaching parity with HDDs in every market sector.
by BtmnHatesRbn March 15, 2009 10:51 PM PDT
Joe Blow can get by with a 15 GB HD, believe it or not, so the sizes dont' have to be too big for them.
by Peter Glaskowsky March 15, 2009 4:21 PM PDT
Brian Beard's remarks were probably taken slightly out of context. It's true that the price-per-bit for any given size of hard disk will eventually be beaten by solid-state disks, but the largest hard disks will remain cheaper than a flash disk of the same capacity for the forseeable future.
Reply to this comment
by chillkc March 15, 2009 7:55 PM PDT
How will SSDs replacing HDDs extend the battery life of a typical laptop? Are SSDs green?
Reply to this comment
by BtmnHatesRbn March 15, 2009 10:53 PM PDT
Not "green" at all, but there are no moving parts. A hard disk is composed of layers of platters on a spindle that has tons of moving parts, like the air compressor that keeps the platters level and spaced apart, the read/write head, etc. With all of these parts gone, the SSD uses very little power, about as much as a RAM chip, and doesn't heat up as much, if at all. Also, drop it. You're data's mostly safe as long as the chips don't crack.
by imhodudes March 15, 2009 10:12 PM PDT
"Flash on a dollar-per-gigabyte basis will reach price parity, at some point, with hard disk drives in the next few years"

So, a 100 terabyte flash drive for $79.95? I'll believe that when I see it.
Reply to this comment
by BtmnHatesRbn March 15, 2009 10:54 PM PDT
Nobody wrote that. You're being rude by speculating out your desire instead of being patient. What do you need 100 TB for anyways? MPEG-2 porn files? Seriously. Pirates need these sizes of storage, not Joe Blow.
by BigGuns149 March 15, 2009 11:02 PM PDT
That will be a while, but if you live long enough (10-15 years) it will likely happen. That being said a lot of people would be happy with far less storage than that. 100TB would be enough to store EVERY Blu-ray title on the market right now (~2000 discs).

I don't question that there are some people who will find a use for still higher capacities, but at some point I think that speed rather than capacity will become the leading factor that people use to determine what storage technology that they use. For those people not using their computers are HD DVR or some other use space intensive use I think a lot of people would prefer a 1TB SLC SSD over a 8TB 7200RPM HDD. A some point capacity doesn't offer much value for a lot of people.
by jaw762 March 16, 2009 5:31 AM PDT
My coworker was on his amazon account at work and his purchase history had a 1GB flash drive that he had paid $40 for just a few years ago. I paid the same for 8GB a few months ago. Not precise here, but that means that 2-3 years has seen SS memory drop in price 8x. A few more multiples of 8 won't take long to get to prices that we all can afford. 100TB might be a little much to expect for $80, at least for awhile.
by WDS2 March 18, 2009 11:56 AM PDT
"What do you need 100 TB for anyways?"

Statements like this always look stupid a few years down the way. I remember when we put the first working 120 MB (yes, megabyte) hard drive in a PC. One of the engineers said, "Wow, what would anyone ever need all that space for?"
by inachu1 March 16, 2009 7:21 AM PDT
I'll be buying one but only as a second drive and use it for my windows swap file.
the speed increase should be between 10%-25%
Reply to this comment
by blurble March 16, 2009 2:05 PM PDT
You don't need it for a swap file, that's what 8GB of 1333DDR-3 is for, which transfers at 6,000MB/s. FAR faster than any SSD, like 30x. Anyone who still has their swap file turned on in WIN is incompetent, unless it's for PhotoChop files, where you'll need 32GB.
by scottthesculptor March 16, 2009 8:43 AM PDT
about time.
I got an HP Omnibook 300 flash in 1995
(hpmuseum.net/display_item.php?hw=123)
paid an extra $700 for an additional 20MB of PCMCIA flash. (!)
Thing would run 5 hours on 4 AA alkalines, 8 hours on a new NiMH.

10 years ahead of the mainstream
Reply to this comment
by gsmiller88 March 16, 2009 2:55 PM PDT
"Samsung expects solid-state drives to reach price parity with hard-disk drives WITHIN THE NEXT FEW YEARS"

I think Samsung deserves an award for their awesome research skills.

/sarcasm
Reply to this comment
by revrend23 March 17, 2009 9:52 AM PDT
is anyone really willing to pay more for 500G or 1000G in a _laptop_? some will, most will not.
IMHO for laptops --- the tipping point will be when cost/G for a 128G SSD gets close enough to a 160G HDD. and when the cost/G for a 256G HDD gets close enough to a 500G, 320G or 250G laptop HDD.
then the benefits of SSD low power, better reliability, performance will be acceptable for mainstream
I personally believe this will be back to school 2009
Reply to this comment
by firefoxluva95 March 17, 2009 6:53 PM PDT
I wish...after all. I'd love to put Windows 7 on an SSD and take it for a spin...or I won't be spinning as SSDs don't spin. I have an 80 G hard drive so anything out there right now is better.
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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.

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