Sandisk: SSD price drops to be less dramatic this year

Prices of Solid State Disks (SSD) won't drop as much in 2013 as they did in 2012, according to the director of product marketing of Sandisk. In 2012 the price decrease of SSDs was roughly 24% compared to the year before and currently the price per Gigabyte for SSDs is about $1. The SSD market is very competitive with many companies fighting their for market share.

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As the most used strategy to win market share is lowering prices this will result in consolidation of the market, which means that some companies will be bought by others. The same happened to the hard disk drive market, where now only three main players are left.

Other companies might need to exit the market because they will need to decrease prices to continue competing but will end up with losses and therefor exit the SSD market. The Sandisk director expects that those who manufacturer their own NAND flash will have a bigger chance to survive. These companies are able to deliver NAND chips when they are short in supply and they are also able to control a large portion of the cost of a SSD.

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