Research from TrendForce reports that SSDs are expected to become much cheaper at the end of 2022 as NAND Flash prices drop by up to 35%.
A report by TrendForce claims that the NAND flash market did not have the usual surge in demand during the peak period of productof hers. This lack of demand has led to excess factory inventory that has reached a "tipping point," and so manufacturers are cutting prices too far to strike a deal with the market.
TrendForce has seen a 30-35% decline for the third quarter of 2022. This is good news for those looking to add some new storage to their PCs, as consumer SSDs are expected to become cheaper as a result.
Like many other industries, the NAND flash market had a “hangover” after the lockdown due to the pandemic. Manufacturers couldn't keep up with the huge consumer demand for electronics during the height of the pandemic, so an aggressive period of job site expansion began while ramping up technology production.
But demand for laptops, smartphones, PCs and other products has plummeted in recent times as consumers have become wary of buying non-essential goods, apparently due to a shaky economy, high energy prices and rising inflation. All this led to an excessive surplus of stocks.
TrendForce assumes that for the fourth quarter of 2022, manufacturers are preparing to maintain share market them at all costs, by overbidding. He believes that as a result, NAND flash pricing for Q4 2022 could drop by 20%.
Exactly when the market will correct is anyone's guess. TrendForce believes that the purchasing attitude of consumers will remain conservative for 2023, which could hamper the sector's recovery.
The bottom line is that if you are looking for a new SATA or NVMe SSDs, it's probably a good idea to wait a bit, at least until the fourth quarter if possible, when prices will hit their lowest point.
