According to the numbers that DigiTimes is seeing, the drop in costs for SSDs are having an effect on the price of HDDs but don’t expect to see the price per gigabyte get all that close.  We’ve seen price cuts from Intel and Adata is also going that route and you can expect the introduction of 20nm flash chips to also help drop the cost of SSDs over the coming year.  On the flip side it looks like large capacity HDDs are going to go up a little bit while the new flash is being rolled out.

“Solid State Drive (SSD) makers including Intel and Adata Technology have been gradually dropping their SSD price since early in the second half of 2010 by about 10-15% in the hopes of increasing the market penetration rate. However, hard drive makers on the other hand, have seen their prices increase in the fourth quarter.

NAND flash prices continues to drop and players including Micron, Intel, Samsung Electronics, Toshiba and Hynix are advancing into developing 20nm processes, and the related price drops of SSDs should stimulate demand for the year-end holidays.

However, since SSD pricing is currently still 10 times higher than traditional hard drive prices, sales will still be constrained. Meanwhile, hard drive makers Seagate, Western Digital, Toshiba and Hitachi GST are all reducing their capacity in the fourth quarter, so prices of hard drives have recently started to climb with 500GB models even seeing 4-5% prices rises.”

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