HP is joining trend to flash memory chips

SAN JOSE, Calif. — Hewlett-Packard is preparing its first laptop with flash memory chips in another sign of the market's gradual migration away from the use of hard drives to store data and software.

Already, Sony and Fujitsu have announced plans to deliver slim laptops with this more durable but more expensive technology. Dell also said it will allow customers to swap out hard-disk drives in favor of flash chips from SanDisk in its Latitude D420 notebook.

While analysts expect high costs will limit flash to a relatively small slice of the laptop market for several years, the new designs from some of the world's largest computer makers underscore the technology's potential.

"There is no stopping it," said Krishna Chander, a senior analyst at El Segundo, Calif., research firm iSuppli. "But it's not happening today."

Flash refers to a memory chip that can be erased and reprogrammed — and it comes with several advantages. Flash memory can better survive a fall than a hard drive, where data is stored on a spinning disk. It also is more efficient with energy and can retrieve information more quickly.

However, it is significantly more expensive and can't yet store as much information as a hard drive.

According to market sources, HP anticipates selling a lightweight notebook with flash memory for business travelers who value a small, portable model but can make do with less storage capacity.

The machine is expected to sell for about $3,000.

HP spokesman Mike Hockey declined to comment on the computer maker's future product plans.

"Right now, we don't think it is a cost-effective solution for customers," Hockey said.

Nevertheless, the design shows HP is eager to establish a beachhead in a developing market, said researcher Roger Kay, president of Endpoint Technologies Associates. "This is the early edge of that market."

Kay said he doesn't expect flash to find its way into mainstream notebooks for another three years or so.

Falling prices should lead a steady migration of the market to flash, Chander said.

Some vendors say such a projection could be close to the mark. Twenty to 30 percent of the market by 2010 is "pretty reasonable," said Dean Klein, vice president of market development at memory maker Micron Technology.

"There definitely are scores of [laptop] designs" in process now, Klein said. "I view it as an up-and-coming trend."