SSD prices expected to move sharply again soon following changes at Samsung factories

JVTech News SSD prices expected to move sharply again soon following changes at Samsung factories

Published on 06/24/2024 at 10:30 p.m.

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In recent years, the small world of SSD manufacturers has often shaken. These earthquakes obviously have an impact on prices and availability of products. In turn, this affects you, the consumer. Here are the latest developments!

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Where were we before June 2024 on the memory market?

As in many sectors, the big nonsense has started during the health crisis. The confined world equipped itself a lot with tech products while many factories were at a standstill. A drop in supply and an increase in demand do not go well together: we have therefore suffered major shortages and a global explosion in prices.

Following this particular period, manufacturers began to produce massively in order to make up for the accumulated delay. Problem: in the meantime, the general public had already bought what they needed. As a result, a situation opposite to the previous one occurred during the second half of 2023. Explosion in supply, drop in demand… therefore fall in prices. It was historic: excellent PCIe gen 4 SSDs could be found for around €70 per TB.

Here, in a very summary, are the two main movements of recent years in the world of tech in general and in that of memory in particular. Now let’s talk about the future. All analysts logically expect a further increase by the end of 2024. You are probably aware that the prices of energy and raw materials have exploded recently. This high inflation combined with the return to normal of the supply/demand balance and technical advances in the environment should very logically lead to a price explosion. Unless…

Samsung and other giants expected to lower prices soon

Today we are in a special period. The sausage fair of a few months ago and its aberrant prices is over. However, we are still not seeing the long-awaited price explosion that we have just told you about. Even betterit seems that prices have a good chance of falling again.

The information comes from the South Korean daily Chosun Daily. Our Asian colleagues report that the 3 biggest names in the world of flash memory are about to increase their production rates. After calming down the pace in 2023, Samsung, SK Hynix and Kioxa are currently running their factories at full capacity… like in the time of COVID.

The cause ? AI, again and again AI. Players in this industry place large orders, which leads to new economies of scale. This new, unpredictable twist before the rise of ChatGPT puts the lie to old analyses. Indeed, the Chosen Daily article cites several researchers and specialists and they seem unanimous: thanks to the AI ​​sector which is boosting the market, we should not experience any shortages or price increases on SSDs! The opposite phenomenon could even occur. So much the better.

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