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Technology Stocks : Silicon Motion Inc. (SIMO)
SIMO 32.55-1.8%Sep 20 12:00 AM EDT

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From: Elroy6/12/2019 5:33:21 AM
   of 2085
 
SSD penetration rate expected to reach over 60% in 2019

digitimes.com

The global penetration rate of SSDs is expected to reach over 60% in 2019 as prices of NAND flash-based memory devices, particularly high-capacity models, have reached their sweet spots which will help drive up demand, according to industry sources.

Some SSD suppliers have seen more pull-in of orders from system vendors and end-market channel distributors recently, partly thanks to the promotion campaigns by e-commerce operators in China for the 618 Mid-year Shopping Festival, said the sources.

Also thanks to price reductions of NAND flash chips, the latest quotes for 512GB PCIe SSD and 512GB SATA SSD have dropped to US$47 and US$45, respectively.

In China, prices of the entry-level 512GB NVMe M.2 SSD devices have dropped to below CNY400 (US$57.8), the sources added.

Meanwhile, prices of 1TB SSD have fallen to around US$120 – a level which will encourage more vendors and consumers to replace their traditional HDD devices, according to Gerry Chen, president of Team Group.

Buoyed by increased demand, Team Group saw its revenues grow 27.78% on month and 12.31% on year to NT$667 million in May. Year-to-date revenues totaled NT$2.882 billion, increasing 5.47% from a year earlier.

Adata Technology also revealed that the ratio of its SSD revenues to total sales increased to 29.87% in May, the highest level since November 2016, and that May's SSD revenues also represented an increase of 40.62% from a year earlier.
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