Samsung has planned a significant price bump for NAND Flash memory used in SSDs in the upcoming quarters in an attempt to rescue the company from dwindling financial conditions.
Samsung's Decision to Increase NAND Pricing Means That Consumer & Enterprise SSDs Will See Price Increases In The Coming Quarters
TrendForce reports that the decision by Samsung's memory division was "unpredictable" since merely a 10% price bump was previously estimated, but the Korean giant is now implementing a 20% "quarterly increase", with the aim of setting the trend of NAND pricing in the industry in order to overcome the deteriorated revenue of the past quarters. Now the NAND pricing fluctuation has already been put into effect since August, with suppliers revising their contracts.
Now how would the NAND pricing increase affect an average consumer? Well, for starters, one should expect a gradual price increment in consumer SSDs, since they utilize NAND chips as a primary component. While we aren't aware of the extent of the rise in pricing, it is expected to be somewhere around 8% to 13%. However, the biggest impact is expected to be seen in the mobile industry, where it is expected to experience a decent 10% to 15% rise in NAND Flash pricing, which might suggest that consumer products in the mobile industry might see a rise in prices as well.
Such industry actions were quite predictable, given that it is the only way to counter the economic downturn being faced by the sector. Samsung and others have tried various methods such as cutting down production and slashing NAND product pricing, however, none have seemed to work out. With the demand from the server industry due to AI developments, along with Samsung's decision to raise NAND prices, we might see the situation improving in the upcoming quarter.
If you are still in dispute about whether to get an SSD upgrade, now would probably be the right time since the prices could see a "significant" rise, once the entirety of the supply chain witnesses the NAND price increment.
News Source: TrendForce
About the author: Muhammad Zuhair is a hardware and technology reporter for Wccftech, specializing in the semiconductor industry and the complex interplay between technology, manufacturing, and geopolitics. His coverage focuses on the corporate strategies and technological roadmaps of industry giants like TSMC, NVIDIA, Samsung, and Intel. Zuhair's expertise lies in deconstructing complex topics such as fabrication nodes (e.g., 2nm process), the economic impact of policies like the CHIPS Act, and the strategic development of AI infrastructure from NVIDIA, AMD and Intel.
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