NAND Memory Prices Soar: Samsung and Other Suppliers Implement Up to 20% Price Increase for SSDs

TrendForce’s recent report highlights an unexpected move by Samsung‘s memory division. Previously, industry experts had estimated a modest 10% price increase, but the South Korean tech giant is now implementing a more substantial 20% quarterly increase. The motivation behind this decision is clear: Samsung aims to exert its influence on NAND pricing trends within the industry as a strategic move to counter the deteriorating revenue it has faced over the past quarters.

All About the NAND Memory Pricing

The effects of this NAND pricing shift have been in motion since August, with suppliers revising their contracts accordingly. But how does this pricing adjustment impact the average consumer? In the short term, one can anticipate a gradual price uptick in consumer SSDs, as these devices heavily rely on NAND chips as a primary component.

While the precise extent of this price increase remains uncertain, it is expected to fall within the range of 8% to 13%. However, the most significant impact is anticipated in the mobile industry, where NAND Flash pricing is projected to experience a more pronounced increase of 10% to 15%. This suggests that consumer products in the mobile sector may also witness price hikes.

These industry actions were somewhat foreseeable, as they represent a necessary response to combat the economic challenges faced by the sector. Despite previous attempts by Samsung and other industry players to mitigate the situation by reducing production and cutting NAND product pricing, none of these measures proved effective. However, the combination of rising NAND prices from Samsung and increased server industry demand brought on by AI developments raises the prospect of improvement in the following quarter.

For those contemplating an SSD upgrade, now might be an opportune moment to consider it, as prices could experience a significant rise across the supply chain as the NAND price increment ripples through the industry.

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