NAND prices unexpectedly dropped almost 5% in Q4 2017

Relief for the high pricing of SSDs could be in sight sooner than expected. Previously, analysts and investors expected prices would continue to rise or remain high for at least another year, but that idea got dashed by a sudden price drop in Q4 2017.

Reuters reports the pricing of high-end flash memory chips, which are commonly used in smartphones, fell almost 5 percent last quarter. Analysts are now revising their forecast, and lowering their growth forecast for the big memory makers.

Last year’s explosive growth gave chipmakers cash to reinvest and boost output, analysts said. The supply of NAND flash memory chips, in particular, will grow 43 percent this year, up from last year’s 34 percent, causing prices to drop by about 10 percent, brokerage Nomura estimates.

The DRAM market on the other hand is unlikely to see similar relief. Supply of DRAM chips is seen as much tighter. Prices are expected to soar another 9 percent due to shortages.