SSD manufacturers have started to capitalize on the extensive price hikes on consumer products, as they are now bumping up production capacities.
Western Digital & Others Are Likely To Recover Their Profits Going Into 2024 By Bumping Up Prices of SSD Products
It seems like the SSD industry is all set to recover its financial losses, which the markets have faced for several quarters amid weakening consumer demand and disruptions within inventory levels. However, after extensive efforts to resolve the supply chain issues, manufacturers such as Western Digital and Kioxia are finally starting to reap the benefits, as their inventory utilization levels reach up to 90%, leading the firms toward profitability. Now, manufacturers are focusing on pushing the production levels back to optimal figures to cover up the huge losses they have faced in past financial years.
MyDrivers report that expanded production mainly focuses on 112-layer and 2D NAND products as the markets start to demand more high-end equipment amid the AI hype and the regular consumer upgrading cycles, which has ultimately prompted more sales. This will further drive the annual growth rate of the NAND Flash industry to 10.9% in 2024, which is an optimistic YoY growth, considering this was in the negative numbers a year ago.
Apart from that, NAND flash pricing is expected to increase by 10 to 15 percent in the upcoming quarters, which could make consumer SSD products even more expensive, a sacrifice that has to be made by an average buyer. We have been seeing a steady rise in NAND products since the start of the year, and based on the indicators, the price increase won’t halt just yet unless companies reach profitability and regain their lost profits from previous market cycles. If this trend continues, we might see a tremendous 55% rise in consumer SSD prices going into 2024.