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SSD prices will fall below $1 per GB in 2012, says IDC

Last year was a record setter, and growth will continue thanks to lower pricing and shortages following Thai floods

The price for SSDs (solid state drives) that are going into PCs are expected to fall below US$1 per gigabyte during the second half of 2012, further boosting adoption, market research company IDC said on Monday.

Pricing remains a key metric for SSD adoption in both client and enterprise markets, according to IDC. In 2011, the price per gigabyte was about $1.56, said Jeff Janukowicz, research director, Solid State Storage and Hard Disk Drive Components at IDC.

The increasing use of flash storage in enterprise solutions; the explosive growth of mobile client devices; and lower pricing will help propel the popularity of the technology in the coming years, according to IDC.

In the short term, the popularity of SSDs will also get a boost from a shortage of traditional hard drives, as result of the floods in Thailand. The availability of flash drives hasn't been affected because most manufacturers are based in Korea and Japan, according to Janukowicz. PC vendors are looking for alternatives when they can't get their hands on traditional hard drives, and SSDs will fill that gap, he said.

2011 was already a record year, with revenue more than doubling year over year due to strong growth in the enterprise and client segments, according to IDC. Revenue reached $5 billion in 2011, a 105 percent increase from the $2.4 billion in 2010, it said.

IDC expects worldwide SSD shipments to will continue to increase at a compound annual growth rate of 51.5 percent from 2010 to 2015.

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