Originally posted by Freg3000
Can't see how this is possible....
The way I see it, there is no way Apple can make "mini" iPods at lower costs (unless they use flash memory, which Steve seems opposed to). 2GB and 4GB drives are just as pricey as the 10GB and 20GB varieties (or so I think). I don't see how it is possible to do have lower prices in a smaller form factor, regardless if capacities decrease.
Generally speaking, hard drive cost is a factor of three things:
1) Bulk production relative to facilities size. If more of a particular size/model are made, it will tend to be somewhat cheaper. This is most apparent at the very low ends of the spectrum: producing a handful of units can lead to an exhorbitant per-unit price tag. Of course, producing more than your facilities are capable of alwo drives up cost (you have to outsource it or just let market demand remain unfulfilled).
2) Required production technology. This is actually related to the above, but bears pointing out separately. Some technologies will have more production facilities available in the short term than others.
3) Number of platters/complexity of drive. This is why an 80GB drive is often cheaper (significantly) than a 160GB drive: the 160GB drive, if using the same underlying technology and process, requires twice as many disks as the 80GB drive.
Looking at recent Toshiba announcements (
http://www.digitalvideoediting.com/2003/11_nov/news/cw_tosh_drives.htm)
the 20GB uses one platter and the 40GB uses two. I presume that the 10GB uses a single platter as well, which doesn't bode well for a smaller drive being significantly cheaper.
Which brings the other issues up: is the density required for 2-4GB drives significantly cheaper to produce than the 10-GB densities? We know that the 5GB bare drive is no cheaper than the 10GB bare drive straight from Toshiba, but this might also be because of relative demand: no one is buying the 5GB drive in bulk, so the 5GB price is artificially high.