April 24th, 2010 by Brian Beeler
SSD Growth to Remain Slow Until 2012
While SSD adoption has been growing, up 14% in 2009, the rapid inclusion of SSDs in personal computers has been slower than many predicted, largely due to the costs associated with NAND flash chips. NAND pricing has not fallen as fast as expected, though there are indications that prices could start sliding more aggressively later this year.
In a report from DigiTimes, Simon Chen, chairman of A-Data Technology, said "the current prices for NAND flash chips are still too high to accelerate the adoption of the next-generation computer storage system." Chen went on to indicate that Apple, who normally restocks NAND supplies in the March to April window, has yet to do so, indicating there may be more downward pressure on NAND chips to come still this year.
Prices of NAND flash have dropped from the highs in 4Q 2009, but only modestly. From the consumer perspective, it's unlikely SSDs will see much better pricing this year and as Chen notes, perhaps not until 2012 will consumers see the benefit of cheaper NAND prices at retail.