A significant increase in SSD prices of over 25% could shake up the market over 2024. Why this increase at a time when the market seems to be recovering? The reason is essentially linked to the production of NAND memory chips, but also to the end of overstocking due to the excesses of the Covid period. Indeed, if demand for NAND chips is higher than supply, it’s not really due to an explosion in orders. The industry giants have simply decided to reduce production since the end of last year in order to stabilize prices and improve profitability.
Samsung’s needs set the pace
The Korean company is a giant in its field. However, it has been through a difficult period in its DRAM division, but is beginning to see the light at the end of the tunnel. According to several sources, Samsung is simply seeking to restore its profit margins by raising prices to compensate for past losses. Ironically, the giants of this industry all seem to agree on this strategy. For Samsung is not alone in cutting production. Other companies, such as SK Hynix and Western Digital, have also followed suit, as they suffer from falling profits due to low SSD prices. As a small consolation, a TrendFroce report claims that the increase will be more “moderate” for consumer SSDs than for enterprise products.
SSD: sustainable price rebound or not?
It seems that this strong rebound will be sustained throughout 2024. This means that SSDs could be at their best now. Opinions on price trends are mixed, however. Indeed, while a rise seems inevitable over the next two quarters, other experts are counting on a normalization by the end of the year, with a multiplication of promotions in line with the renewal of the PC market.
