Enterprise SSD costs are in for a drop

CPU costs could also be headed north, however due to an oversupply of NAND flash, SSD costs throughout the board are declining.

The trigger is an oversupply mixed with the specter of a recession, in response to Taiwanese market analysis agency TrendForce. The agency mentioned a mixture of slowing demand throughout all segments of the NAND reminiscence enterprise, together with a reluctance to put money into further capability, has led to the glut.

Because of this, TrendForce predicts shopper product costs will decline 8% to 13% within the third quarter of 2022, whereas enterprise SSDs will drop 5% to 10% in Q3, and the development could proceed into the fourth quarter if demand doesn’t enhance.

The financial system is impacting server manufacturers’ shipments of entire gadgets and curbing enterprise SSD purchases, in response to TrendForce.

“Company order quantity continues to say no, concurrently affecting the buying momentum of enterprise SSDs in 3Q22. Secondly, orders from cloud service suppliers in China had been weak in 3Q22 and demand pushed by shipments of next-generation server platforms failed to satisfy expectations,” the analysts mentioned in a press release.

NAND flash isn’t the one reminiscence section taking a success.

Final month, TrendForce predicted common DRAM costs will fall 3% to eight% p.c within the third quarter. The explanation for the decline is completely different from NAND flash, nevertheless. There was discuss of a slowdown in PC and smartphone gross sales, and there’s additionally a transition from DDR4 to DDR5 reminiscence. With new chips coming to market from Intel and AMD that make the most of DDR5, there’s been a slowdown in DDR4 gross sales. The slowdown will proceed because the transition goes on, which can be for a number of years.

TrendForce notes that the slowdown is particularly pronounced on the patron facet, and that reminiscence makers will shift to creating enterprise reminiscence. So server DRAM costs could not fall in any respect, or they might fall as a lot as 5% within the third quarter, the corporate predicts.