Laptop Storage Prices Projected to Surge by 50% in 2024, TrendForce Report Warns
In a recent report by market intelligence firm TrendForce, a looming price surge of up to 50% for storage drives in laptops and computers is anticipated throughout 2024. The report attributes this significant price increment to suppliers striving to reach the breakeven point after a rebound from the previous decline in NAND flash memory prices.
The impending price hike is expected to impact computer SSD drives, making them more expensive this year, consequently leading to elevated prices for laptops and computers in the market.
Industry analysts highlight that SSD price increases have already begun to manifest, marking the conclusion of an era characterized by exceptionally affordable storage solutions. TrendForce predicts an additional sharp surge in prices, citing manufacturers’ struggles to recoup expenses and dwindling inventories.
According to TrendForce’s report, major players in the NAND Flash industry emphasize the need for price hikes driven by the pursuit of profitability. A price increase of over 40% is deemed necessary for major manufacturers to break even, with future hikes expected to be at least 50% or even higher to achieve profitability.
The report also provides insights into the global NAND Flash market share in 3Q23. Samsung secures the leading position with a market share of 31.4%, followed by the SK group at 20.2%, and Western Digital in the third position with a market share of 16.9%. Kioxia, a Japanese company, ranks fourth with a market share of approximately 14.5%.
Highlighting the current industry trend, TrendForce notes that due to lower profitability in NAND Flash compared to DRAM, international giants are actively reducing NAND Flash production. Samsung, for instance, has expanded its reduction in NAND chip production to 50% of total capacity since September, focusing on products with stacked layers up to 128 layers. This strategic reduction aims to accelerate destocking, stabilize prices, and sets the stage for gradual price increases in 2024.
TrendForce indicates that other suppliers are adopting a similar restrained wafer allocation strategy, leading to a structural supply shortage after more than half a year of production reduction. The shortage provides chip manufacturers with an advantage in controlling prices, with the market experiencing a scarcity of low-priced sources for purchase in the fourth quarter. Despite these challenges, buyers are maintaining high inventory levels and continuing their purchasing activities, according to the report.
