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[RR] ASUS: We Run Out Of Hard Disks At The End Of The Month. - Page 7

post #61 of 116
Asus, if you are really running out of hard drives...I'm willing to sell you mine for $1,000 each.
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Lawlputer
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post #62 of 116
I hope HDD prices are back to normal by April 2012, in time for my Ivy Bridge build.

For now, I've got enough storage, over 4TB when HDDs were really cheap a few months ago so I can sit this price madness out.
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post #63 of 116
I got lucky, just ordered a western digital black 1tb from ncixus for just 89.99. Amazon really jacked up their prices, it's going for $200 over their.
post #64 of 116
And SSD's come in to save the day!
post #65 of 116
Quote:
Originally Posted by DuckieHo View Post
*sigh* The profit margins for most SSDs OEMs are not that high. Intel makes a lot because have a joint venture with Micron. For the most part, they basically produce their own NAND, controller, and firmware.

Most other SSD OEMs (except Intel, Toshiba, Crucial/Micron, and Samsung) are selling commodity parts. The NAND is bought on the market and controllers can be licenced.

The majority of a SSD cost is in the NAND which is currently going for $7.26 per 8GB chip (www.dramexchange.com). That means a 60GB SSD already costs $58 in just the memory. The controller adds another $5-20. Then there are the other components, SATA ports, PCB, casing, and assembly which probably adds $10 or so. That means a 60GB SSD costs around $85 to produce. Then you factor in logistics, wearhousing, shipping, marketing, support, and RMA costs which eats away at the profits.
When I get done laughing, SSD's aren't nearly this expensive to manufacturer. A good rule of thumb is that you can take the WHOLESALE cost of any item and divide by 3 and it'll get you in the ball park. Figure from whole to retail another 50-100% increase in cost.

Thats before you count the margin Intel gets selling the chips. Which is easily 300%

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.
post #66 of 116
Quote:
Originally Posted by Homeles View Post
Nothing wrong with the technology behind solid state. At this point, I think they're far more reliable than a mechanical drive.

Now if you're talking about the cost, yeah, SSDs aren't really a viable replacement for hard drives in a budget pc.

Anyways, the hard drive market is truly in trouble right now. I didn't realize OEMs would be hit hard as well, bit short sighted of me. Definitely noticed that parts retailers like newegg got hit hard though. Have you seen the prices? I doubt they're going anywhere but up.
Lol, i think boinz was being sarcastic
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post #67 of 116
Thread Starter 
Anybody got a F3 laying around? I can pay in chocolate truffles.
post #68 of 116
Quote:
Originally Posted by SCollins View Post
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.
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post #69 of 116
hopefully this will increase SSD sales and decrease their prices
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post #70 of 116
My friends we are here witness the slow and steady demise of yesterdays technology. Blows like this have long term impacts on technology development.
This is exactly what we need to catapult our current technology into the future.

The only reason hard disk drives are still around is because of our stockpile of hard drive making capitol, this makes the production of HDD relatively cheap compared to SSD. When we see a hick-up like this in the industry it is sure sign that future technology is about wipe the floor with old technology, not only in terms of performance, but also in terms of cost.

Any bumps in the road for HDD manufactures and they lose the only edge that they have, relatively cheap marginal cost gained by increasing returns to scale.


Now is the time to buy SSD stock!

Mechtech, that is good, but remember that this market is marked by monopolistic competition. The companies cannot set any price they want. The whole market is actually determined by supply and demand, in the elementary sense.
Edited by Acefire - 11/1/11 at 4:15pm
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