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Intel, Crucial, others rumored to trigger SSD price war

updated 01:35 pm EDT, Wed April 25, 2012

Price drops aimed at forcing out small players

Solid state drives, a critical component in many thin, high storage-density mobile devices, could see dramatic price drops in the coming months due to a burgeoning price war among the major SSD suppliers. According to DigiTimes, industry sourcesin Taiwan are indicating that large suppliers are preparing to drop prices on SSDs precipitously.

The price drop would come as part of a move to push smaller SSD suppliers out of the market, as the leading SSD producers are rumored to be concerned that inferior drives produced by smaller players could stall development of the SSD market. Cutting prices, then, would lower margins to the point where only the larger players could survive. DigiTimes' sources name Kingston Technology, Intel, OCZ, and Crucial as the firms looking to lower SSD prices. So far, none of the manufacturers has commented on the rumor.

Additionally, the price drop could aid the drive makers in pushing adoption of the new Serial Advanced Technology Attachment standard, SATA3. SATA3 allows for more compact, higher speed drives, and a faster transition to the standard could see baseline storage capacities in SSD-based devices increase from the current 32GB and 64GB to 128GB and 256GB. SATA3-based drives are already available, but the major drive manufacturers hope to accelerate adoption of the standard even more.



By Electronista Staff
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Comments

  1. SockRolid

    Forum Regular

    Joined: Jan 2010

    +5

    Can you say "oligopoly"?

    Re: "Cutting prices, then, would lower margins to the point where only the larger players could survive."

    Wow. Talk about price fixing.

  1. 2shizzle

    Fresh-Faced Recruit

    Joined: Apr 2012

    +2

    There ought to be a law against this

    Oh, there is. When I was a kid, companies kept collusion & price fixing DL. Was the Sherman Act repealed?

  1. RiquiScott

    Fresh-Faced Recruit

    Joined: Oct 2007

    +4

    comment title

    According to the SCOTUS, among other thresholds that must be met for this to be considered "predatory pricing", the manufacturers would have to be selling the drives for less than their manufacturing costs. It would also look very bad for the manufacturers if they raised the selling price after the competition's been eliminated. But they could sell for at- or near-cost now, and still realize a profit later without raising prices, as their manufacturing cost drops (lower component prices in the future) and they realize higher yield rates (improved manufacturing processes).

  1. testudo

    Forum Regular

    Joined: Aug 2001

    0

    Re: Can you say "oligopoly"?

    Re: "Cutting prices, then, would lower margins to the point where only the larger players could survive."

    Wow. Talk about price fixing.


    Can you say 'capitalism'.

  1. testudo

    Forum Regular

    Joined: Aug 2001

    0

    Re: There ought to be a law against this

    Oh, there is. When I was a kid, companies kept collusion & price fixing DL. Was the Sherman Act repealed?

    First, that only applies to american companies, since it's a US law. For example, OPEC can set prices any way they want, and Americans have no problems buying from them without complaints of law breaking.

    Second, there's a difference between 'collusion and price fixing' and some people expecting a price war. And it's only collusion if the parties get together to do this. If Intel drops prices, then Samsung, then Hitachi, then Intel again, then Samsung again, there isn't either of these problems.

    Third, companies do this all the time. Heck, look at the airline industry. One adds fees for bags, soon everyone is doing it!

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