SSD Prices Set to Skyrocket Up to 25% as Manufacturers Seek to Recoup Lost Profits

TrendForce, a company specializing in IT market insights has recently published its forecast regarding price changes, in the NAND flash market. Their analysis indicates that in the quarter of 2024, there will be significant price hikes for NAND flash products following the upward trend observed in the previous quarter. However, it is projected that the price increase for client SSDs during Q2 will be limited to a maximum of 15% showing an improvement compared to the surge of 23 28% witnessed in Q1 of 2024.

More About SSD Price Increase

The data provided by TrendForce presents a comparison of price trends for NAND flash products between estimated Q1. Forecasted Q2 of the current year. This includes NAND-based devices like eMMC and UFS well as client and server SSDs along with the NAND flash wafers used in these products.

The first quarter of 2024 posed challenges for tech enthusiasts looking for affordable SSD storage options as prices across the board surged by 23–28%, based on TrendForces research findings. This increase could lead to expenses, for individuals planning PC upgrades or builds. According to TrendForce’s analysis prices are not expected to stabilize or decrease in Q2 of 2024. Instead, there may be a compounded rise ranging between 10 and 15% until the end of June.

After looking at the chart, it’s clear that the rise in prices for consumer SSDs is outpacing that of the 3D NAND wafers. According to TrendForce, this occurrence is attributed to factors like SSD makers’ buying tactics, a drop in sales of products, and inadequate inventory buildup in times. Regarding the influence on client SSD pricing and the market overall, TrendForce asserts that Kioxia and WDC have increased their production capacity utilization rates since Q1, while other major players have adopted more conservative production strategies.

The situation could have been more challenging for client SSDs. TrendForce analysts predict that enterprise customers will experience the most significant price hikes in Q2 of 2024. The projected 20-25% increase in enterprise SSD prices for the current quarter stems from various factors, including sustained strong demand from US and Chinese communications service providers, unmet demand for high-capacity products, and the anticipation of inventory buildup in Q2.

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