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Why SSD and HDD Prices Move in Parallel

ASTC 2016 HDD RoadmapWhy are HDD prices tracking SSD prices?  Why don’t they cross over?  These are questions that The SSD Guy is often asked, especially by people who anticipate a crossover in the near future.

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%.

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Jim Handy
Objective Analysis
SSD Market Research
+1 (408) 356-2549
Jim.Handy (at) Objective-Analysis.com

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