After much gloomy news about SSD prices continuously increasing, a new source shows a glimmer of hope for a price reduction for this product line by the end of this year.
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South Korea's Chosun Daily news agency recently reported that companies that produce NAND flash memory for SSDs are ramping up production. That means the upward pressure on SSD prices in recent months will ease. It is known that South Korea's leading chipmakers, Samsung Electronics and SK Hynix, along with Japan's Kioxia, are currently ramping up NAND flash memory production after continuously cutting production previously due to the current situation. previous chip glut, which helped drive SSD prices to a record low in 2023.
Increasing NAND flash memory production will help reduce SSD prices.
To increase prices, many major Korean manufacturers as well as Western Digital and Micron have cut production by 30% to 50%. But recently, it appears that the glut of NAND flash memory has begun to ease, thanks in part to production cuts as well as growing demand thanks to the growth of artificial intelligence data centers. create (AI).
With demand for SSD products now increasing to serve data centers processing increasingly large AI workloads, increasing NAND flash memory output will solve the serious shortage problem in recent times. .
Of course, manufacturers will have to consider that increasing NAND flash chip production will most likely lead to downward pressure on SSD prices, especially if production is suddenly increased. They can implement “gradual” improvement measures to avoid redundancies like before.
Demand for SSDs in AI data centers is huge.
Experts say the price reduction may take place later this year, meaning users who want to upgrade their PC system's SSD can wait a few more months to save a certain amount of money.
SSD prices are expected to increase 25% this year, a figure welcomed by manufacturers as they seek to recover recently lost profits.
Manufacturers are willing to increase SSD prices reported by up to 25%. This price increase will be calculated in advance by them with the aim of gaining more profits and balancing their finances, which would not have happened before because the SSD value was too low.
SSD price increases this year are inevitable.
SSD price increases this year are inevitable.
In recent quarters, manufacturers such as Western Digital or Samsung have suffered from the economic downturn and low demand. This forced them to increase prices, by 10% to 15% for general consumer PC units, while for the enterprise market, the price increase would be up to 25%.
However, this number is still not enough to compensate for the price increase that is expected to be optimal for manufacturers, which will reach about 40% as reported from TrendForce. Essentially, that means consumers have to accept progressive increases in the coming quarters.
Price increases for these SSDs have been predicted since last year and appear to be coming true. As new reports of price increases appear more and more, now is the ideal time for consumers to invest in a good SSD.
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Users are recommended to purchase an SSD as soon as possible.
While this is not good news for consumers, it will be good news for manufacturers, which need to balance their finances as a result of the recent global economic downturn. When manufacturers have more financial resources, they can better invest in upgrading the memory technology used in SSDs, opening up opportunities for consumers to access more advanced technology.