Experts of the analytical company TrendForce tried to predict how contract prices for enterprise SSDs will behave in the short term.
Analysts expect the ramp-up for Intel Ice Lake and AMD Milan processors will not only drive server shipments growth in the current quarter, but will also drive demand for larger SSDs. As the workforce gradually returns to the offices, businesses are now placing more orders for IT equipment, including servers, compared to the first half of last year. Thus, worldwide solid state drive purchases are expected to increase by 7% in the current quarter over the previous quarter. However, a persistent capacity shortage in the semiconductor industry has resulted in the supply of solid state drive components lagging behind demand. At the same time, vendors of enterprise SSDs are actively increasing the share of higher-capacity models in an attempt to increase the profitability of their product lines.
Taking these factors into account, TrendForce analysts expect contract prices for enterprise SSDs in the third quarter of 2021 to rise 15% over the second quarter.
Looking into the fourth quarter, TrendForce experts expect the server shipment cuts will lead to a corresponding correction towards lower enterprise SSD purchases. In the meantime, the lack of components will be felt less and less, so the supply will increase. As a result, contract prices for enterprise SSDs in the fourth quarter are likely to remain roughly the same as in the third quarter.
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