Enterprise SSD Demand Soars While Consumer Orders Lag, Driving 3Q24 NAND Flash Revenue Up 4.8%

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TrendForce’s latest findings have shown that the NAND Flash industry recorded a 2% QoQ decline in bit shipments in 3Q24, but a 7% rise in ASP boosted overall revenue to US$17.6 billion—making a 4.8% QoQ increase.

TrendForce noted that NAND Flash pricing trends diverged across application segments in 3Q24. Strong enterprise SSD demand drove a nearly 15% increase in ASP, while client SSD prices saw only modest growth amid declining orders. Smartphone NAND Flash products faced reduced orders as Chinese smartphone brands adhered to low-inventory strategies, keeping contract prices largely flat compared to the previous quarter. Meanwhile, wafer contract prices reversed and began declining due to weak retail market demand.

Looking ahead to 4Q24, the NAND Flash industry is expected to face more significant challenges. Although enterprise SSD prices are projected to remain stable, contract prices for other product categories have begun to decline. Additionally, consumer brands are expected to lower inventory levels by year-end, weakening overall demand. TrendForce predicts that NAND Flash industry revenue will decline by nearly 10% QoQ in 4Q24.

Samsung retained its top position in revenue ranking. Strong enterprise SSD demand in North America offset declines in smartphone product shipments, resulting in a 5% drop in bit shipments. However, higher ASP helped maintain its revenue at $6.2 billion, similar to 2Q24 levels. For 4Q24, Samsung’s NAND Flash revenue is expected to experience a slight decline due to weaker order momentum.

SK Group (including SK hynix and Solidigm) ranked second in revenue. Despite weak smartphone and PC demand leading to a 15% drop in bit shipments, strong performance in enterprise SSDs significantly bolstered profitability. TrendForce projects that while enterprise SSD price growth will moderate in 4Q24, stable shipments will help SK Group maintain flat revenue.

Kioxia secured third place in revenue, followed by Micron and Western Digital/SanDisk (WDC). Kioxia benefited from the seasonal peak in U.S. smartphone production and increased enterprise SSD shipments, leading to a 9% rise in bit shipments and growth in both ASP and revenue. However, with the smartphone production peak ending in 4Q24, Kioxia’s revenue is expected to drop by over 10%.

Micron achieved a 10% QoQ increase in bit shipments across all product lines, with revenue rising 26.6% QoQ to $2.51 billion, driven by higher ASP. However, broader product shipment declines—excluding enterprise SSDs—may lead to a slight revenue dip in 4Q24.

WDC recorded a 15% QoQ increase in bit shipments that exceeded expectations. However, a higher share of low-end products in its mix negatively impacted ASP and limited revenue growth to just 7%.