As Demand Falls, Your SSDs Are About to Get More Expensive

Analysts in the PC storage sector claim that the recent price cuts on memory and SSDs will have a significant impact since production costs will be affected by lower overhead. Therefore, key producers like Samsung, SK Hynix, and Micron will have to overprice and undersell their goods in order to restore sales back before the price lowers.

Samsung is reportedly contemplating doing the same, according to the most recent Citigroup report (via Kuai Technology) after SK Hynix and Micron previously revealed output reductions over the last several quarters.

The price decline of NAND flash memory chips is expected to narrow due to supply cuts by major manufacturers such as Micron and Kioxia, and market demand is likely to bottom out in the first quarter of 2023.

Citigroup

According to industry insiders, Samsung’s semiconductor sales dropped by about a trillion dollars in the first quarter and are forecast to drop by twice that much in the second. The corporation may lose its position in the market forever if it does not take dramatic steps to reduce NAND memory costs below the manufacturer’s retail pricing.

For the first quarter of this year, TrendForce forecasted that NAND flash memory would lose ten to fifteen percent of its value, with a corresponding decline in the price of solid-state drives to be expected. With an increase in NAND pricing, acquiring SSD and memory is going to be a lot more expensive.

NAND Price Projections | Image: TrendForce

Global disputes have also contributed to the anticipated rise in NAND pricing, in addition to reducing demand. YMTC and other companies like it have had their sales and income severely harmed by the prohibition on doing business with international partners. Companies have raised product prices to respond to the crisis, which will have the tremendous impact on consumers.

One thing is for certain: if prices go up, purchasing SSDs and RAM will be considerably more costly than it was before, which will impact customers. Unfortunately, it is unclear when any damaged markets will recover. As a result, riskier business methods may be necessary to offset total losses.

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