SSD prices set to increase by 50% in 2024 so that NAND Flash suppliers return to profitability

A new report by TrendForce indicates that prices will increase dramatically for NAND Flash suppliers like Samsung, Kioxia, SK Hynix, and Micron to return to profitability. The price hike could be as high as 50% for NAND Flash (in the short term), leading to SSD prices increasing dramatically in 2024.

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"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," the report writes. "It is anticipated that prices will need to increase by over 40% once again for major manufacturers to break even."

Yeah, a 40% price hike to break even is quite something and a reminder that the NAND Flash industry is in a very precarious spot at the moment.

The NAND Flash market, per the most recent quarter, shows Samsung holding a strong lead with 32.3% of the total market share, followed by SK Group (SK Hynix and Solidigm) with 18.6%, Western Digital in third place with 16.9%, and Kioxia in fourth-place with 14.5% market share.

Micron, who recently reported a $2.3 billion loss, is in fifth place with a 12.5% market share.

Companies like Samsung have reduced their overall output by 50% since September 2023, so getting the right supply and demand balance has been key, and prices for popular SSD models are already rising - this will continue for a while.

And this is where it will get frustrating for those buying new storage solutions and SSDs in the first half of 2024 - an additional 50% increase means you could be looking at paying double for something listed for half as much in 2022. Returning to profit is great news for the industry; companies won't face bankruptcy or difficult future decisions.