Laptop storage prices to rise by 50% in 2024 – Report
A report by market intelligence firm, TrendForce, has revealed that prices of storage drive laptops and computers will go up by 50% in 2024.
According to the report, the price increment is predicated on the need for suppliers to reach the breakeven point after a rebound from the decline in NAND flash memory prices.
This would make computer SSD drives more expensive this year and ultimately lead to higher prices for laptops and computers.
Industry analysts noted that SSD price increases have already become noticeable, ending the era of exceptionally affordable storage. However, TrendForce expects an additional sharp increase in prices as manufacturers cannot recoup their expenses and inventories are running out.
The market intelligence firm in the report stated:
“Major domestic players in the NAND Flash industry indicate that NAND Flash suppliers, driven by the goal of profitability, will continue to aggressively raise prices. It is anticipated that prices will need to increase by over 40% once again for major manufacturers to break even. To achieve profitability, future price hikes are expected to be at least 50% or even higher.”
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Looking at the global NAND Flash market share in 3Q23, TrendForce noted that Samsung holds the leading position with a market share of 31.4%. The second position is held by the SK group, with a market share of 20.2%, followed by the U.S.-based Western Digital in third place with a market share of 16.9%. The Japanese company, Kioxia ranks fourth with a market share of approximately 14.5%.
According to TrendForce, the industry indicates that due to the lower profitability of NAND Flash compared to DRAM, international giants are actively reducing NAND Flash production.
“Taking Samsung as an example, since September of this year, the reduction in NAND chip production has expanded to 50% of total capacity, focusing on products with stacked layers up to 128 layers. The goal is to accelerate destocking and stabilize prices, with plans to gradually increase prices in 2024”
“TrendForce has indicated that following Samsung’s expansion of the production reduction to 50%, other suppliers are also maintaining a restrained wafer allocation strategy. After more than half a year of production reduction in some processes and capacities, there is a structural supply shortage, providing an advantage for chip manufacturers in price control.
“Observing the market in the fourth quarter, there are almost no low-priced sources available for purchase. However, buyers still tend to maintain high inventory levels and continue purchasing,” it added.
Punch
