Prices are rising everywhere, even in the NAND Flash sector for SSDs. After DRAM, SSD memory is now under upward pressure due to strong demand. Indeed, data centers are in dire need of storage while they train AI. And since AI is on a roll, this is also reflected in the price of components, including memory. The news here is that Sandisk is taking advantage of the situation to raise the price of its NAND Flash-based components by 50%.
Sandisk: 50% price increase!
Well, as a consumer, the news isn’t good, as the price of SSDs is set to rise yet again. Indeed, Sandisk is proceeding with a 50% contractual increase on its NAND flash. The ultimate aim is to realign prices with the market. This move is entirely understandable, since a company cannot survive by selling at a loss. If the brand doesn’t raise its prices, it will reduce its profits because its memory is too expensive. As we have seen, DRAM prices have risen by 172% over the past year. Admittedly, NAND Flash is not the same type of memory, but it follows the same trend.
In fact, certain players such as Transcend, Innodisk and Apacer are posting record balance sheets due to (or thanks to?) growth in AI. We’re talking about 334% year-on-year net profit for Transcend, compared with 250% for Innodisk, while Apacer posted 70% year-on-year sales.
This situation is unprecedented, according to Adata’s CEO, and we’re heading for a long period of shortages. According to Phison’s CEO, this could last a decade… Unless the AI bubble (if there is one) bursts, but that’s clearly not on the cards.
