Major tech companies across the globe are jumping on the AI bandwagon, constructing big data centers to keep up with the intensive data processing needs. Consequently, there are signs of a shortage of enterprise NAND SSDs appearing in the supply chain.
Having been hurt by a supply glut in the memory market over the past year, Samsung isn't letting this opportunity to increase its margins pass by. The company is reportedly preparing a big price hike for its NAND SSD products for enterprise customers.
Samsung's price hike likely to help other memory companies also
Samsung is expected to increase its NAND SSD prices for enterprise customers by up to 25% in the second quarter of this year. It should provide the company with higher margins after a disastrous downturn in the market last year.
The company had reportedly planned to only increase the price by about 15% initially compared to the previous quarter, but it has now apparently decided to go a bit higher given the surge in demand that has exceeded the company's expectations.
As the leading supplier of enterprise SSD products, Samsung holds considerable pricing power over the market, given that it accounts for almost half of the entire market in this segment. Its price hike is going to have a trickle-down effect, with other manufacturers likely following suit.
Companies in all different sectors, from tech to automotive and beyond, are accelerating their AI expansion and thus require increased storage space on servers. Samsung's NAND SSD products are suitable for these endeavors, and it looks like the company might finally be in a position to start reversing its fortunes.
