Storage NAND Flash prices are dropping continuously this year & are expected to fall by up to 8%, due to poor SSD demand.
Client SSD, eMMC UFS, & 3D NAND Wafers to see a significant price reduction as the NAND Flash storage demand diminishes
According to the latest statistics, the prices of storage drives will drop noticeably in the fourth quarter of 2024. The reduction in the prices of SSDs is reportedly due to weakened demand and increased production of the NAND Flash and will continue till the end of 2024.
As per TrendForce, most segments are going to see a price decline in Q4 2024, and the overall drop could be between 3-8%. Except for the Enterprise segment, other segments such as Client, eMMC UFS, and TLC/QLC segments will see a noticeable price decline that can go as high as 15%. This is even though the overall NAND Flash prices rose by 5-10% in the third quarter of 2024.
eMMC and UFS
Storage solutions such as Embedded Multimedia Card and Universal Flash Storage saw almost no price increase or decrease in Q3 2024 but the prices of these storage devices are expected to decline by 8-13% in the fourth quarter.
These storage solutions are used in smartphones and while the newer flagship phones such as the iPhone 16 series, Samsung Galaxy S24 Ultra, and various other smartphones have provided momentum to the phone market, buyers are predicted to avoid over-stocking of storage solutions due to ample stocks and increased supplier inventory.
3D NAND Wafers
3D NAND Flash such as QLC(Quad Level Cell) and TLC(Triple Level Cell) are expected to see a price reduction within a 10-15% margin as the seasonal back-to-school and holiday deals have failed to increase the sales of PC products in US and Europe. Similarly, the Chinese market will see a reduced demand for 3D NAND Flash due to the Double 11 festival.
This coincides with the reduced PC shipments in the 3rd quarter, which signals the reduced 3D NAND prices for the mainstream PC market. According to TrendForce, memory module makers have excessive inventory and many supplies are offering their storage solutions at reduced prices, which is what will make the NAND Flash wafer contract prices decline further.
Client segment
Finally, the client segment is also expected to see noticeable price cuts within 5-10% in Q4 2024. It's reported that inflation and limited practical use of AI have reduced the demand for newer and faster storage solutions. While the manufacturers have already returned to full capacity in Q3 by ramping up the module production, the server side has a stable demand, which isn't enough to increase the SSD prices.
The price gap growing between spot market, channel prices, and OEM contract prices is further making it difficult for the suppliers to increase the prices due to their need to remain competitive across different markets.
About the author: Sarfraz Khan is a hardware reporter with a focus on PC components and the builder community. With years of experience writing about PC hardware and laptops, his work has been featured on several reputable technology publications. Sarfraz's hands-on experience is demonstrated through his first-person accounts of using and comparing different hardware configurations, providing practical and relatable insights for everyday users. His technical analysis is respected by peers in the enthusiast community and has been cited by specialized hardware sites such as Germany's Igor's Lab.
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