TECH NEWS – While the increase in price is understandable for old Winchesters (less mainstream technology, fewer people make them, so they are not cheap to buy), SSDs will be more expensive than before.
We have already written about the fact that the price increase of SSDs will follow, and this is how the market wants to correct it, after many people bought up stocks during the pandemic, which were then unsold, and the manufacturers wanted to get rid of them cheaply, which only happened at a loss . Because of this, an NVMe SSD, for example, is now more expensive (we certainly experienced a 20-25% price increase, and it could be even more) than a year ago. But artificial intelligence has a role to play here as well: this also requires storage space, and due to machine update cycles, the industry specializing in storage space is now reaping the benefits.
TrendForce wrote that both Western Digital and Seagate informed their trading partners that the price of old mechanical storage units (HDDs) and SSDs should be significantly increased. Here’s Seagate’s letter: “As we’ve previously reported, the recovery in demand continues across multiple segments of our business, and our reduced manufacturing capacity limits our ability to meet the needs of all our customers, resulting in longer lead times, and our costs continue to be impacted by global inflationary pressures. As a result, we implement price increases with immediate effect for new orders and demand that exceeds previously agreed quantities. Supply constraints are expected to persist, so we expect prices to rise further in the coming quarters.
We would also like to ask for your continued cooperation in working with your branch representatives to coordinate short-term and long-term demand needs. Our ability to meet unplanned increases and changes in demand is limited, so we ask that you communicate any changes to your orders as soon as possible. While we understand that this change may present challenges, we hope that we can count on your support and understanding in this matter. Your account representative can provide more details about the changes if needed. Thank you for your business and continued partnership,” Seagate wrote.
TrendForce previously announced a 25% price increase. In order to reach the optimal price level, it must be increased by 40%, so a total price increase of 65% can occur. So it’s worth preparing for the fact that a faster, high-quality 1 TB NVMe SSD will cost HUF 55-60 thousand.
Source: WCCFTech, TrendForce
