Media Contact

Ms. Lindsay Hou

Tel: +886-2-8978-6488 ext.667

RSS Subscription
  DRAM  
  NAND Flash  
  Storage  
  Display  
  Consumer Electronics  
  LED  
  Green Energy  
  Internet of Things  
  Semiconductors  
  Automotive Electronics  
  Innovative Technological Applications  
       

Press Release


512GB SSDs' Price-per-GB Estimated to Fall Below US$0.1 and Hit an All-time Low This Year End, Says TrendForce

Wednesday , 05 / 08 / 2019 [ Analysts: Alan Chen ]

According to research by  DRAMeXchange  , a division of  TrendForce  , the NAND flash industry this year is clearly exhibiting signs of oversupply, and SSD suppliers have gotten themselves into a price war, causing SSD prices for PC OEMs to take a dive. Average contract prices for 512GB and 1TB SSDs have a chance to plunge below US$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 SSDs. We may also look forward to PCIe SSDs achieving 50% market penetration, since PCIe SSDs and SATA SSDS are nearly identical in price.

TrendForce points out that SSD adoption among notebooks had already come above the 50% threshold in 2018. Contract prices for mainstream 128/256/512GB SSDs have fallen a long way by over 50% 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% in 2019.

 

2Q Average Contract Prices for SSDs to Fall by Double Digits, May Drop by Less in 3Q

According to TrendForce's latest investigations, 2Q19 marks the 6th 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%, and PCIe SSDs by 16-37% .

The reasons for the continuous price fall in 2Q include: weakened stocking momentum due to the cautious stance of PC, smartphones and servers/datacenters OEMs towards end market sales and high inventory levels, leading to an overly oversupplied NAND flash market; price wars by leading SSD suppliers who are keen to get their 64/72-layer stocks off their hands; and the price comparison effect as a result of Intel 3D QLC SSDs.

The demand side will be helped by the traditional peak season and increased stocking demand from the new Apple devices, possibly seeing an improvement over 1H in 3Q looking forward. Furthermore, many NAND flash suppliers are slowing expansion plans and have declared reductions in production to curtail supply. Yet judging from the rather high inventories along this chain of industry, TrendForce predicts that average contract prices for mainstream SSD capacities will likely continue their descent, although with a slope less steep.

 

Price Differences Greatly Narrow, with PCIe to Replace SATA Interfaces as Market Mainstream

Judging from the product progress of each SSD supplier, all mainstream product lines have already switched to 64/72 layer SSDs with 256/512GB capacities and PCIe interfaces as their main products. The newest 96-layer SSD has also gradually entered production in 1Q this year. Additionally, judging from average contract prices in the second quarter, current prices for Premium PCIe SSDs and SATA SSDs only differ by under 6%, while value grade PCIe SSDs and SATA SSDs register a nearly 0% difference. PCIe interfaces, with the help of value grade PCIe SSDs, will replace SATA interfaces to become market mainstream this year.

To keep updated with our press releases, please follow our social media pages. facebookGoogle+TwitterLinkin

TrendForce Press Center Copyright Notice
TrendForce grants you a limited license to use and/or republish any of the press releases on TrendForce Press Center for any legitimate media purpose (including copying and redistributing the content of press releases in any format and via any outlets), provided that you follow these license terms:

1. Reference TrendForce as the source on your works, or include a hyperlink to the original release on the TrendForce site.
2. Do not modify any press release wording, or maliciously alter its related information. Users are subject to any civil or criminal liabilities if the information displayed in the copy or redistribution of press releases is inconsistent with the original materials on TrendForce Press Center.
3. Do not modify or add hyperlinks, including but not limited to adlinks, within the press release. The authorization of press releases on TrendForce Press Center does not grant users the right to suggest, approve or endorse their value-added derivatives on behalf of this body.

If your citations of press releases contain mistakes and/or have information missing, TrendForce may, in its sole discretion, direct you to remove the content distributed via TrendForce from your site at any time and for any reason, and you agree to comply with such request.