NAND Market Split: Consumer SSDs Fall, Enterprise SSDs Rise

The NAND flash memory market is undergoing a significant transformation as prices continue to fall, mirroring trends observed in the DRAM market. According to data from market research firm Omdia, the price of the most popular three-layer cell (TLC) 256Gb NAND flash products is projected to decrease by 2.6% from $1.54 in the previous quarter to $1.50. This decline reflects broader market dynamics, with the demand from key sectors such as smartphones and PCs yet to recover, impacting price stabilization.

Since August, several product lines have begun to see price reductions. In August, the price of TLC 512Gb products fell by 3.3% from the previous month, settling at $3.30. Similarly, the price of high-capacity 1TB products decreased by 3.4%.

Prices for multi-layer cell (MLC) 256Gb products are also expected to drop by more than 10%, with Q3 prices forecasted at $11.55 compared to $12.95 in the previous quarter.

However, the market is not experiencing a uniform decline. Omdia forecasts a rise in the price of four-layer cell (QLC) 256Gb NAND used in enterprise SSDs, from $1.23 in Q2 to $1.36 in Q4.

This polarization in the NAND market—where consumer-oriented product prices are decreasing while server-focused product prices are rising—represents a noteworthy trend. Omdia has also revised its forecast for AI PC penetration in the PC market this year from 11% to below 10%, partly due to the impact of Intel's restructuring.

Meanwhile, leading manufacturers like Samsung Electronics and SK Hynix are focusing on high-capacity and high-performance SSDs to maintain their market positions. Samsung is developing a 256TB server SSD, aiming to release it by 2027, which will be four times the capacity of current products. SK Hynix plans to launch a 128TB product early next year, followed by a 256TB high-capacity offering. TrendForce predicts that price increases for enterprise-grade SSDs will contribute to additional revenue growth for Samsung in Q3.