Q2 Enterprise SSD Sales Decline... No Peak Season Effect in Q3

Demand Slump and Inventory Burden Continue Due to Economic Recession
Market Leader Samsung Electronics... Market Share Declines Compared to Previous Quarter

In the second quarter, sales of enterprise solid-state drives (SSDs) amounted to $1.5 billion, reflecting a sluggish economic situation. This trend is expected to continue into the peak season of the third quarter, with forecasts suggesting that the average price of enterprise SSDs could drop by about 15% compared to the previous quarter.

On the 31st, market research firm TrendForce reported that global enterprise SSD market sales in the second quarter decreased by 24.9% from the previous quarter to $1.5 billion. They explained that ongoing inflation and economic recession, along with conservative investment behavior by cloud service providers (CSPs), led to weak demand for enterprise SSDs.

Enterprise SSD Manufacturer Market Share and Revenue Changes /
[Image provided by TrendForce]

This situation is expected to persist into the third quarter. TrendForce predicted, "The average price of enterprise SSDs in the third quarter will fall by about 15% compared to the previous quarter," adding, "As a result, sales performance during the peak season could be even weaker." However, they viewed the increase in AI server investments and the rising adoption rate of high-capacity enterprise SSDs as positive factors.

Samsung Electronics ranked first in the enterprise SSD market in the second quarter with a 35.2% market share. However, this was a decrease from 40.1% in the previous quarter. TrendForce explained, "The decline in demand for general-purpose servers significantly impacted sales," and added, "Starting from the second quarter, the shift in investment toward high-end AI computing made it difficult to clear inventory of products used in general-purpose servers."

SK Hynix (including its subsidiary Solidigm) ranked second with a 24.9% market share. The United States-based Micron took third place with a 14.3% share. SK Hynix and Micron increased their market shares by 2.0 percentage points and 3.4 percentage points, respectively, compared to the previous quarter.

This content was produced with the assistance of AI translation services.