Shulou(Shulou.com)11/24 Report--

Thanks to CTOnews.com netizen OC_Formula for the clue delivery! CTOnews.com May 16 news, these two years, the rapid development of the SSD market, costs have been greatly reduced, coupled with a serious decline in market demand in the past year, the world's major NAND manufacturers inventory continues to be high, so in order to compete for shipments have to open price reduction model, SSD can be said to have come to the "cabbage price" level.

According to the latest report from CTOnews.com, the TiPro7000 2TB of Changjiang Storage's own brand has dropped to 999 yuan, and the TiPlus7100 1/2TB has also reached 509959 yuan.

Not only big brands, at present, many minority brands of solid state drives have been close to the price of mechanical hard drives. For example, some solid state drives that use Changjiang storage Taishan particles + Lianyun 1602 master have reached a level of just over 200 yuan per TB.

With Samsung, Meguiar, SK Hynix and other brands NAND particles have begun to gradually pull up, most of the products have not continued to reduce prices for a long time. Judging from the data of China's flash memory market, the NAND index has been stable in a range for nearly two months, and the price reduction trend has been much lower than that at the end of last year.

In this case, the domestic leading enterprise Changjiang Storage naturally does not want to see the market continue to fall. The latest news shows that the price of particles stored in the Yangtze River has been rising since last week.

According to a source at Bobantang, Changjiang Storage has notified the official pull-up, with a price increase of about 3-5%. For example, 256G has risen by about $4-5. Of course, the first impact of price increases must be on the enterprise market, and it may take some time for the consumer spot market to see a significant rise.

Global NAND flash revenue fell 25 per cent month-on-month to $10.29 billion in the fourth quarter of 2022, while shipments increased by just 5.3 per cent, according to the latest TrendForce research.

According to the report, Knight's revenue plummeted 30.5% in the fourth quarter of 2022, while Meguiar's quarterly revenue of $1.1 billion fell 34.7% from the previous quarter, which led them to significantly reduce the capacity utilization of the fab. Samsung continued to promote high-volume products on its cost advantage, leading to an increase in total-digit shipments, but even so, it could not avoid a fall in average prices, with revenue of $3.48 billion in the fourth quarter of 2022, down 19.1 per cent from the previous quarter.

In addition, the SK Group (SK Hynix and Solidigm) was also affected, with fourth-quarter revenue of $1.76 billion, down 30.9% from the previous quarter. Although Western Digital shipments rose 20 per cent in the fourth quarter, NAND Flash revenue reached only $1.66 billion, down 3.8 per cent from the previous quarter.

Analysts pointed out that as the production cuts of DRAM and NAND Flash failed to keep up with the weak demand, the average prices of some products fell further in the second quarter of 2023. Analysts expect DRAM prices to fall by about 1318%. NAND Flash expects a decline of between 8% and 13%.

The report shows that NAND Flash is mainly affected by enterprise-level SSD and UFS price cuts, and the situation of oversupply in the market has not been resolved. These two products account for more than 50 per cent of total NAND Flash consumption.

In other words, although demand is still lower than expected and inventory is still under pressure, it is difficult for major manufacturers to continue to bear the consequences of price cuts. For example, Micron has told dealers that DRAM and NAND Flash flash memory will no longer accept lower inquiries from May. Recently, it has also been reported that Samsung has informed the distribution agent that it will no longer provide orders lower than the current transaction price in the future, and the original factory has obviously bottomed out the market price one after another, although this strategy is aimed at spot prices. However, it is expected that the strategy of price stabilization will be gradually extended to the contract market.

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