This week (November 21) prices of SSD market decreased sharply, including the price of mainstream TLC 120GB SSD fell from 38 US dollars to 36.5 US dollars, down by 3.9%; price of 240GB SSD fell from 67 US dollars to 65 US dollars, down by 3%.

This week (November 21) prices of SSD 

source：www.chinaflashmarket.com

ChinaFlashMarket analyzed that there are three main reasons for SSD prices declined this week: First, manufacturers undersold inventory. Towards the end of 2017, some channel distributors began to undersell inventory by the end of the year, leading to an increase in market supply, affecting the continued decline in the SSD market price. Second, the high cost and other factors have led the market demand continued to downturn, affecting SSD prices continued to decline.

source：www.chinaflashmarket.com

The third reason, and the most importantly one, is because of the large number of low-cost, low-quality SSDs used in the market, it has led to an decline in the price of SSDs. Reviewing the past two years of SSD market conditions, the mainstream SSD price rose more than 50% due to the shortage of NAND Flash market in 2016. The market shortage of NAND Flash supply in 2017 was not completely alleviated, the SSD price rose another 20% in the first half of the year, accumulated more than 80% increase in recent year.

source：www.chinaflashmarket.com

As the mainstream SSD prices continued to rise sharply, high cost factors affect market demand downturn, giving some cheap low-quality SSD a chance of growth. The effect of bad money drive out of good and the impact of lower prices of such low-quality SSD are not only affecting the healthy growth of the SSD market, but also bringing great pressure on the sale of SSD products using regular chips and leading SSD prices fell sharply.

Although the second half of 2017 SSD has been showing a downward trend, the current SSD prices, the 120GB SSD price of 36.5 US dollars is only same with the price that beginning in 2017, higher than the 2016 average price by 18.7%.Price of 240GB also slightly 1 dollar higher than the beginning of 2017, higher than the 2016 average price by 21.5%.

In other words, the current SSD market prices are still relatively high, before the large number of capacity of 3D NAND production from vendors come to the market, the possible phenomenon of such bad money drive out of good money will continue for some time. But it will not last too long since the 3D NAND vendors is gradually expanding production capacity, actively supplying goods to customers and hoping to ease such undesirable market conditions.