The sales performance for first-generation Ultrabook PCs equipped with SSDs (solid-state drives) has fallen short of expectations because of high sales prices due to high costs of SSDs which account for over 25% of the BOM (bill of materials), according to Lenny Sharp, director of product marketing for mobile & desktop HDD, Hitachi Global Storage Technologies (HGST). Therefore, PC vendors, ODM makers and vendors of HDDs (hard disk drives) have sought storage solutions which can meet performance requirements and have an advantage in terms of cost, leading to increased adoption of mixed storage solutions, Sharp indicated.

"Mixed storage solutions may be positioned as a substitute in transition, but I think such solutions will become mainstream choices for ultrabook PCs in the future." Sharp said. SSDs are the first choice for ultrabook PCs in terms of functional performance but incur too high cost, affording a market niche for mixed storage solutions, Sharp noted.

There are two types of mixed storage solutions adopted in the market, one is a hybrid HDD by integrating a HDD with NAND flash and the other is a dual storage system consisting of an independent HDD and an independent SSD, Sharp indicated.

At the same level of performance, the cost per unit of storage is US$8.85 for a dual storage system of a HDD and a 32GB SSD, US$18.86 for a hybrid HDD and US$23.32 for a SSD, Sharp said. Although prices for SSDs are on the decline, there is still a considerably large price gap between SSDs and HDDs, Sharp indicated.

SSDs are unlikely to become popular in the future because improvement in HDD technology is progressing, Sharp pointed out. For example, HDDs used in notebook PCs have evolved from 9.5mm to 7mm in thickness. 7mm 5,400rpm (round per minute) HDDs have been adopted for entry-level ultrabook PCs, with HGST, Western Digital and Toshiba being main suppliers, Sharp noted. In addition, 7mm 7,200rpm HDDs have been developed mainly for use in mid- to high-level business-use ultrabook PCs, Sharp added.

In addition to relatively high performance/cost ratio, a dual storage system of a 32GB SSD and a HDD has the advantage of flexibility in procurement for PC vendors and ODM makers, Sharp pointed out. This is because HDD vendors are responsible for integrating HDDs with NAND flash to make hybrid HDDs, with PC ODM makers unable to replace HDDs and/or NAND flash, Sharp explained. In contrast, PC vendors and ODM makers are able to select suppliers and quotes in procuring HDDs and SSDs to maximize their profitability.

As growth in global demand for PCs is slowing down, Ultrabook PCs are expected to bring new business opportunities for HDD vendors and therefore popularity of Ultrabook PCs will become crucial for them, Sharp pointed out.