Chicago (IL) - Portable USB storage for the keychain is no luxury anymore, but often a handy tool that helps to move large data amounts from A to B. And according to PriceGrabber.com's Market Reporter, Flash memory reached a size-price ratio that makes sense for most consumers - the mainstream market. We had a closer look at where you can find the most bang for your buck.

Remember the good old floppy disk? Just until a few years ago, those 360 K, 720 K and 1.44 MByte of storage capacity were good enough for plenty applications and data. It took the industry several tries to transition users to other storage types - such as online storage or CDs - but it wasn't really until the popularization of digital audio and video when a true shift to alternative storage types happened. That need was filled by CD and DVD burners, but these devices remain somewhat a solution for archiving data.

For a couple years, Flash has been moving slowly but surely into the consumer storage space - not only with storage cards, but also in the shape of USB Flash sticks. For more than 18 months, storage sticks have been one of the driving forces behind the growth for Flash manufacturers. Recently, prices of such devices have come down sharply and offer capacities that are large enough for storing virtually any kind of temporary data, resulting in a growing interest from a larger user base.

NAND Flash, the technology USB sticks are based on, has become a mature memory technology that reacts to common market forces, and therefore is an evading target as far as price and capacities are concerned. However, current market conditions indicated by PriceGrabber.com's Market Reporter suggest that 1 GByte devices are ready to replace 512 MByte versions as the mainstream product. Let's have a closer look at the etail market. We will focus on plain storage devices and leave specialty devices - such as models with biometry functions or pre-installed software - out of consideration.

256 MByte sticks have virtually disappeared from the websites of online shops and were replaced by the 512 MByte class as mainstream solution in the third and fourth quarter of 2004. Any new generation of USB sticks usually has a very short introductory phase with stable pricing. For example, most 512 MByte devices of manufacturers such as Sandisk or Crucial were introduced sometime in the first quarter of 2004 with prices that ranged from about $130 to $160. Just one quarter later, prices began to plunge dramatically and fell to around $50 by the third quarter of the year. Since then, prices have stabilized and currently hover around $40.

A similar scenario can be seen for the 1 GByte class, which follows the price trends of the 512 MByte devices. First 1 GByte models were launched in the first quarter of 2004 for average etail prices of at least $220. Price drops generally correspond to the market behavior of 512 MByte models, but keep a safe distance. In the third quarter of 2004, 1 GByte USB sticks hit $80 and have been showing little movement since then - with average etail pricing fluctuating about 15 percent above or below this mark.

The next generation - 2 GByte devices - already knocks on our doors. Pricing of these models follows the 1 GByte generation in a distance of about three quarters. Introduced between $180 and $230 in the first and quarter and second quarter of this year, the devices are selling for average prices between $140 and $165 at this time.

Interestingly, there is not much price difference between the different brands of USB sticks of different manufacturers - at least when it comes to average etail pricing. No matter if you are looking for a stylish Sandisk Cruzer model with more of a mass-market appeal or a device from Corsair or Crucial for that extra touch of exclusivity - in the end you will pay about the same. For example, Sandisk's 1 GByte Cruzer Mini and Micro are offered in a price range between $65 and $69, while Corsair's 1 GByte Flash Voyager drive sells for around $70 and PNY's Attache drive runs for around $58. Specifically performance-branded models such as OCZ's "Rally" and Memina's "Pocket Rocket" sell in this price range as well.

Plain math will tell you that the unchallenged value leader in the current USB stick market are 1 GByte models. If you want the best deal, aim your purchase at this product class. But as so often, individual needs decide which device fits your needs. If absolute price is the focus then you may want to closely watch the outgoing 512 MByte generation, but don't expect any more significant price drops below $30 in coming months. Keep your hands off the 2 GByte generation, if you can wait another quarter. With 1 GByte models replacing 512 MByte versions as mainstream devices in coming months, you don't have to be a talented market researcher to see prices for 2 GByte USB sticks dropping below $100 before Christmas arrives.

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