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Technology Stocks : Disk Drive Sector Discussion Forum
WDC 179.56+0.7%Dec 24 12:59 PM EST
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To: Mark Oliver who wrote (3650)6/12/1998 11:25:00 AM
From: Pierre-X  Read Replies (1) of 9256
 
Re: Ultra-cheap HDD

You said:
My point is that the Disk Trend report totally discounts the need for ultra cheap sub 2 gig drives.

That's an interesting point. If you look at the per MB pricing across capacities:

(my off-the-cuff approximations)

Capacity(GB) Price $/MB
2.1 $100 0.048
3.2 $120 0.038
4.3 $140 0.033
6.4 $220 0.034
8.4 $270 0.032

Notice how the cost/MB flattens quickly. Cheap hard disks are, on a unit basis, expensive. If a new hard disk design could specifically reduce production cost for low capacities to be unit-competitive i.e. down to 3 cents per meg => $50 hard disks (including interface logic) I think a lot of devices would start building them in.

Think about Sony Playstations and Nintendos for starters. That's a razor/razor blade business where the console has to be cheap cheap cheap. No room for $100 HDD, but there might be room for a $40-$50 HDD. Heck, I just bought a $40 flash card for my Sony Playstation, and I would guess it only holds 8MB -- and is slow as sh** to boot. Every time I access the thing I wish the Sony had a HDD. <g>

Think about the FCC ruling mandating retail sales of cable set tops.

Think about the growing embedded logic industry and Internet tendrils beginning to make their way into heretofore undiscovered territory. Nothing like a little computing power and bandwidth to awaken the hunger for local storage.

God bless,
PX
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