Brace For Impact: SSD & NAND Storage Prices Expected To Rise By 55% In 2024

The storage industry is expected to see a major increase in prices with some industry sources quoting as much as a 55% hike for SSD & NAND products.

Western Digital & Others Reportedly Preparing For a Massive NAND Price Increase, Expect Consumer SSDs to Become Expensive

We have reported previously that the SSD industry has been in a “dwindling” state for several quarters up till now, as current indicators suggest that we might see an economic rebound, courtesy of the strict actions taken by suppliers. The downward trend within the SSD segment started in 2021 when the world saw a shortage in master control ICs, and even after the supply resumed in 2022, weakened consumer interest led to a significant decline in revenue for SSD manufacturers. However, with inventory correction and vigorous price increments, companies like Phison are in for “progressive” upcoming quarters.

MyDrivers reports that Phison has validated the rapid price increase in the storage industry in its performance report for 2023. The company was able to garner a consolidated revenue of NT$5.407 billion, which marks nearly a 5% monthly increase, which is a huge progress for the firm. Phison has disclosed that SSD shipments are on their way to recovery and has reported a 40% YoY increase in total shipments, which is yet again a large number because the SSD industry hasn’t received a piece of good news for a while now.

Phison isn’t the only company seeing radical changes in the SSD industry, as Western Digital has reportedly informed its clients (via DigiTimes) about a whopping “55% increment” in NAND chip prices, that would be implemented gradually over the upcoming quarters. While the company hasn’t mentioned the reason behind this increase, it is the way to combat declining consumer demand and disrupted inventory levels.

Companies like Samsung and SK Hynix have already implemented a price increase in their storage products, and others are indeed following their steps. It wouldn’t take long when we see the effect of the price increase being translated into consumer markets, hence if you are in for upgrading your SSDs, now might be the best time.

News Source: MyDrivers

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