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SSD prices drop in a trade war

by on10 May 2019


Oversupply

Beancounters at DRAMeXchange have added up some numbers and concluded that the NAND flash industry this year is exhibiting signs of oversupply.

SSD suppliers have become involved in a price war, causing SSD prices for PC OEMs to dive and things are expected to get worse – or better depending on who you are.

Average contract prices for 512GB and 1TB SSDs fell below $0.1 per GB by the end of this year, hitting an all time low. This change will cause 512GB SSDs to replace their 128GB counterparts and become market mainstream, second only to 256GB SSD.

On the plus side PCIe SSDs achieving 50 percent market penetration, since PCIe SSDs and SATA SSDS are nearly identical in price.

DRAMeXchange points out that SSD adoption among notebooks had already come above the 50 percent threshold in 2018.

Contract prices for mainstream 128/256/512GB SSDs have fallen a long way by over 50 per cent since peaking in 2017, and those for 512GB and 1TB SSDs have a chance to fall below US$0.1 per GB by year end.

This will stimulate demand from those seeking to replace their 500GB and 1TB HDDs. SSD adoption rate is expected to land between 60 and 65 per cent in 2019.

According to DRAMeXchange’s latest investigations, 2Q19 marks the sixth consecutive quarter of average contract price decline for mainstream PC-Client OEM SSDs, with the average contract price for SATA SSDs falling QoQ by 15-26 percent, and PCIe SSDs by 16-37 percent.

Last modified on 10 May 2019
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