SSD Shortage: NAND Flash Prices Set to Rise 40% in 2020
NAND flash component pricing is set to skyrocket this year as supply trumps demand. As the main component of solid state drives, NAND flash memory is forecast to increase by up to 40% throughout the 2020 fiscal year.
Market shifts in pricing are not new to the SSD industry. In previous years, the industry has seen shortages due to unexpected events ranging from natural disasters to industrial accidents. The catalyst of the current hyperinflation pricing is a trickle effect of NAND flash overstocking in the market that is coming to an end. Previous overstocking of NAND helped keep pricing lower in years past.
Another factor fueling the shift is due to a few manufacturers who primarily lead the NAND market that when combined, hold a considerable share of the global market. The first notable increase was seen this past December, showing price increases of roughly 10%. Analysts are estimating another 10% increase during the first quarter of 2020. As the NAND market continues to expand further into consumer and commercial products, the demand for NAND flash will continue to increase, further pushing pricing.