Contrary to the current trend in the storage market, Samsung could soon increase the prices of its Solid State Drives (SSD), at least according to various sources from the industry. The background is allegedly production problems. Like the Taiwanese industry service DigiTimes Citing sources from the local hardware industry reported, Samsung is likely to increase the prices of its SSDs in the coming weeks and months because in-house production of flash memory modules has stalled due to the new lockdown measures imposed in China.
Less flash memory, fewer SSDs, higher prices
Observers assume that Samsung will have to reduce the production of flash memory modules at its plant in the Chinese city of Xi’an by up to 40 percent. This is necessary because the Korean company is affected by the measures taken by the local government to contain the coronavirus pandemic. Due to a sharp increase in the number of infections, the freedom of movement of the people in Xi’an has recently been massively restricted. With a decline in the production of flash modules in China having a direct impact on the production of complete Samsung SSDs, it is now considered likely that Samsung will raise prices.
This could also have an impact on the market as a whole, because Samsung’s actions, as one of the leading providers, often have more consequences than you might think. Recently, some SSD manufacturers reduced their prices compared to wholesalers in order to inquire about the demand, which is stagnating especially in China. However, the observers assume that price increases by Samsung could lead to a kind of wave of price increases by other manufacturers. To what extent the prices will actually rise is still open. The development will probably become clearer in the next few weeks, as PC manufacturers will probably only start buying new components again in mid-January, now that the Christmas business is behind them.
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