Nand flash memory prices will start to fall in 2019

At the Flash Memory Summit, Objective Analysis CEO and semiconductor analyst Jim Handy confirmed that the NAND Flash memory market was in a state of oversupply, predicting downward price corrections. This change is good news for buyers of SSDs, as lower NAND prices will reduce the cost of storing these types of drives, as well as the costs of flash components in mobile phones and other digital devices.

Analysts forecast a sharp drop in NAND memory prices in the next 2 years

Most notable of Handy's prediction is that the price correction could be the largest the industry has ever seen, with prices plummeting, rather than just a readjustment as seen this year. Search Storage reports that Howard Marks, founder and chief scientific officer of DeepStorage, has forecast a 50-60% decrease in NAND memory prices in the next two years.

This decrease in prices is due to several factors, although it can be summed up in a single determining factor, that the manufacture of NAND memories is increasing at a faster rate than the demand of the industry. Several Chinese manufacturers are now entering the NAND / Flash market, while existing providers such as Samsung, SK Hynix, and Sandisk / Western Digital have worked to increase their manufacturing capacity during the recent shortage of this type of memory.

It would also impact hard drives

These factors are expected to cause 2-3 years of oversupply in the NAND / Flash market. This is very curious, because we would go from having NAND flash memory stock problems, to an oversupply.

Price declines are also expected to have a major impact on the hard drive market, as lower-cost SSD-based storage will cannibalize hard drive sales in the business and laptop markets.

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