In essence it’s because both the HDD industry and the semiconductor industry have set goals for themselves to achieve 30% average annual price reductions. If they are both on the same trajectory, and if there’s an order of magnitude difference between HDD and SSD prices today, then there will be an order of magnitude difference in the future as well.
The 30% average annual decline in SSD prices has a convenient name: Moore’s Law. Although there’s no physical, economic, or other restriction behind Moore’s Law (so it’s not really a law at all) it serves as a guide for the industry. Chip makers set their sights at doubling the number of transistors on a chip every couple of years, and this equates to average annual price decreases of 30%.
The HDD business also Continue reading