Subj : Samsung is raising SSD prices  but it could be for a good reason,
To   : All
From : TechnologyDaily
Date : Mon Apr 08 2024 06:45:06

Samsung is raising SSD prices  but it could be for a good reason, as AI boom 
starts to reach its peak

Date:
Mon, 08 Apr 2024 05:40:39 +0000

Description:
Samsung is raising the prices of enterprise SSDs be 20-25% in Q2, with other 
manufacturers expected to follow suit.

FULL STORY
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Samsung Electronics has announced plans to raise the price of its enterprise 
SSDs by 20-25% in Q2 of 2024. This is a significant increase from the 
initially projected 15%, with the price hike being attributed to the booming 
AI industry. 

The past few weeks have seen a global shortage of NAND flash enterprise SSDs, 
a situation that is being blamed on high demand from new data centers and the 
rapid expansion of AI-related storage servers. 

A semiconductor industry insider told BusinessKorea , Server companies 
seeking to expand their storage capacity are rushing their SSD orders 
recently, and some products are even experiencing shortages, leading to 
considerations for increased production. Same price hike everywhere 

Samsung significantly influences price decisions as it supplies about 50% of 
the enterprise SSD market. TrendForce estimates that where Samsung leads 
others will follow, with the 20-25% jump in price mirrored across the board. 

 TrendForce s Bryan Ao says, With large-capacity SSD orders experiencing low 
order fill rates, suppliers continue to influence price trends, likely 
forcing buyers to accept higher prices. As some buyers attempt to increase 
their inventory levels before the peak season in 2H24, Enterprise SSD 
contract prices are forecast to jump by 2025% in Q2 - marking the highest 
rise across all product lines. 

This increase is unique to enterprise SSDs, with eMMC and consumer SSDs only 
getting 10-15% more expensive in Q2. 

As The Register reports, With much of the growth of the SSD market being 
propped up by AI-induced demand, there's lots riding on AI being a success. 
After all, if there is a bubble and it pops, not only will those 
super-expensive SSDs have become a pretty bad deal in retrospect, but SSD 
makers like Samsung will see a major source of increasing revenue evaporate. 
Just as long as the money for expensive computer components keeps coming, 
there's nothing to worry about. No pressure. More from TechRadar Pro Samsung 
to showcase the worlds fastest GDDR7 memory Samsung beats Micron to 36GB 
HBM3E memory Huawei has a game-changing 10 Petabyte storage product



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Link to news story:
https://www.techradar.com/pro/samsung-is-raising-ssd-prices-but-it-could-be-fo
r-a-good-reason-as-ai-boom-starts-to-reach-its-peak


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