Overstocking and global economic factors can start a “war” between brands. Is it time to buy?
According to information published this week by TrendForce, the semiconductor industry may be preparing for further price reductions, this time in the NAND Flash memory segment. The company estimates that this will result in sharp drops of up to 35% in the price of SSDs, even during the third quarter of 2022.
TrendForce states that there are several factors behind this reduction, the main one being the excess inventory of components. During the last 2 years, the industry as a whole has been under pressure to increase its production capacity, in view of the very high demand caused by the COVID-19 pandemic.
However, in an already post-pandemic scenario, the result has been a significant drop in consumer demand, which has been materializing mainly in the smartphone and laptop markets. Other global economic factors are also directly impacting sales, includingenergy rises, global inflation and tensions in Europe.
As a result, the The expectation is that manufacturers will start a price “war” to maintain market share and to get rid of stranded inventories.
A survey of the price history of the Samsung 970 EVO Plus SSD on Amazon reveals the continued downward trend in the segment:
Even more drops in the fourth quarter
This scenario could become even more competitive in the fourth quarter, with TrendForce indicating a second drop of another 20% by the end of the year. Considering the current context, these reductions are expected to continue through much of the beginning of 2023.
It’s worth noting that SSD prices aren’t the only ones pointing to a downtrend in the PC market. IDC is another of the companies highlighting that the moment may not be good for manufacturers.
Video card inventories are also putting pressure on manufacturers to carry out aggressive promotions. Recent news points out that both AMD and NVIDIA have been negotiating significant price cuts on their current cards in order to make room for new generations, scheduled to be launched later this year.
Is it a good time to build a new PC?
In light of recent events, many people have been wondering if it’s a good time for anyone looking to build a new PC or invest in an upgrade. The answer, as always, depends on the reality of each consumer. For those who already have a competent PC, it can be advantageous to wait a while to take advantage of end-of-the-year promotions.
See below our article talking a little more about what to expect from the GPU market (and their prices) for the coming months:
Buy GPU now or wait? Manufacturer says video cards are below cost
Prices have plummeted and a question remains? Stagnated, will it fall further or rise again?
Via: Toms Hardware Source: TrendForce