Samsung is set to raise its SSD prices, but it could however be for a good reason, as AI boom begins to reach its peak. This simply means that Enterprise SSDs will now be 20-25% more expensive than it used to.
Samsung to Raise SSD Prices
Samsung Electronics has revealed its intention to increase the price of its enterprise SSDs by 20-25% in the second quarter of 2024. This adjustment marks a notable rise from the originally forecasted 15%, with the price surge attributed to the flourishing AI industry.
In recent weeks, there has been a worldwide shortage of NAND flash enterprise SSDs, with the scarcity largely attributed to the heightened demand from emerging data centers and the rapid expansion of storage servers associated with AI technologies.
Expert Analysis of the New Development
That said, a semiconductor insider recently revealed to BusinessKorea, “Server companies seeking to expand their storage capacity are rushing their SSD orders recently, and some products are even experiencing shortages, leading to considerations for increased production.”
Given Samsung’s substantial market share of approximately 50% in the enterprise SSD market, its pricing decisions hold significant sway over industry norms.
TrendForce projections suggest that where Samsung leads, other players in the market are likely to follow suit, resulting in a widespread adoption of the 20-25% price increase across the board.
Bryan Ao of TrendForce says, “With large-capacity SSD orders experiencing low order fill rates, suppliers continue to influence price trends, likely forcing buyers to accept higher prices. As some buyers attempt to increase their inventory levels before the peak season in 2H24, Enterprise SSD contract prices are forecast to jump by 20–25% in Q2 – marking the highest rise across all product lines.”
What You Need To Know About These Increases
This very increase as you should know is unique to enterprise SSDs, with eMMC as well as consumer SSDs only getting 10-15% more expensive in the second quarter.
And just as The Register reports, “With much of the growth of the SSD market being propped up by AI-induced demand, there’s lots riding on AI being a success. After all, if there is a bubble and it pops, not only will those super-expensive SSDs have become a pretty bad deal in retrospect, but SSD makers like Samsung will see a major source of increasing revenue evaporate. Just as long as the money for expensive computer components keeps coming, there’s nothing to worry about. No pressure.”
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