Originally Posted by SCollins
Lets face it. SSD prices are high because they can be. Not because they actually should be. With more production volume costs would go down as well.
You're actually wrong about this.
The first thing to keep in mind is that the NAND flash market is a commodity market, not unlike other commodities like wheat and steel. Flash is traded like any other commodity, and the market price is determined through buy and sell orders, unlike say CPUs, where big monolithic entities (Intel) set prices to what they think the market supports.
The current cost (at least what traded on 11/1/01) for 128GB of flash was $96. The retail price of a 128GB drive is $200 +- 20 for the mainstream makes. Factor in production cost, RMA/replacement costs (high, as mainstream SSDs are fairly error prone), controller costs, and of course the retail markup, and you have probably a $125-150 production cost for a drive that sells for $200 (or less if you shop around) to the end user.
That's a 50% markup, and probably closer to 15-25% markup when you look at the bulk price directly from the manufacturer. Certainly not a 300% markup, at least for mainstream drives. Of course premium brands will have a higher markup for essentially the same product, but that's no different from any other industry, from clothes to monitors.