Upstream NAND prices continue to rise, prompting storage companies to increase cost control efforts. Most finished product prices have surpassed previous highs.

Recently, some OEMs have released spot NAND resources to downstream storage vendors, causing a significant price increase of over 30% compared to last month. Due to frequent and aggressive monthly price hikes driven by the supply side, the prices of 512Gb/1Tb TLC NAND and 1Tb QLC have increased two to three times since the last quarter of last year. Since the last quarter of last year, faced with the continuous rise in NAND resource prices, downstream storage vendors could still rely on existing low-cost inventory to buffer cost pressures. However, after experiencing months of consecutive resource price increases and with the unpredictable upward trend in the foreseeable future, storage companies are now more focused on cost control, closely monitoring the prices of new purchases and reflecting this cost in the corresponding products. Currently, the high prices of industry and channel SSDs and embedded products are indeed suppressing the stocking intentions of some demand-side customers, leading to a significant decrease in shipments. However, thanks to the significant increase in product prices, overall revenue levels can still be maintained at a relatively high level. It is important to be cautious that when storage product prices exceed a certain critical point, it may trigger more customer resistance.