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I agree that demand for hard drives will continue. The question is how long before solid-state storage can compete on price. Solid state keeps getting denser and cheaper, but the capacity of hard drives keeps going up at the same time. Or at least it has so far. In any case I expect* hard drives to remain the dominant storage device for at least the next decade, barring a breakthrough on the solid-state side.

In the meanwhile, with only two manufacturers the question is how they will compete. If each one is satisfied to allow the other to keep its share of the market they can leave prices kind of high; that means high margins and high profits. However it either one decides to compete on price the other will have to counter, which means margins and profits go out the window. So far they are acting smart and not pushing on price.


*An opinion worth no more than you paid for it.
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