An oversupply of flash memory has led market analysts to predict drastic price decreases in the near future.
Interested in seeing flash memory prices come down to just $0.08 per gigabyte? It could happen if Jim Hardy’s prediction comes true. Hardy, a market analyst with Objective Analysis, has predicted a “downward pricing correction” for 2019. While speaking at Flash Memory Summit, Hardy also stated that there could potentially even be a complete pricing collapse.
Currently, the industry is faced with a very large surplus of NAND flash memory. With all of that excess inventory, we could be seeing significant price drops that would affect SSD and perhaps even DRAM pricing in 2019. As crash prices would bring flash memory pricing down close to production costs, Hardy characterized it as the largest-ever price correction in the history of semiconductor products.
Bringing the prices of SSDs down into a price range that is more competitive toward HDDs could lead to cannibalization and a downturn for some manufacturers, including Western Digital and Seagate.
If manufacturers do cannibalize HDDs and allocate more NAND to producing DRAM, that would result in an oversupply in that sector, so suppliers are really between a rock and a hard place at this point.
Soon enough, we’ll see if the analysis rings true.
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