News On April 11th, Western Digital, a leading storage company, confirmed that due to the surge in AI, major customers’ demand for high-capacity hard drives increased on Apr.8th, 2024. This has caused a supply shortage in both their mechanical hard disk (HDD) and solid-state drive (SSD) sectors. This was first reported on April 8th.
Western Digital has officially informed its customers about adjustments in NAND flash memory and hard disk product prices. A screenshot of the letter is attached.
The company stated that the demand for flash memory and hard disk products has exceeded expectations, leading to supply constraints. Challenges in the electronics industry’s supply chain have further impacted product availability. In this quarter, they will continue adjusting the prices of flash memory and hard disk products, with some changes taking immediate effect.
Western Digital plans to adjust product prices more frequently in response to market changes. The company also mentioned that its ability to accommodate unplanned demands and orders is limited, hence the need for advance notice for any order changes. They anticipate that unplanned demands may result in extended delivery cycles.
TrendForce predicts that the tight supply of high-capacity hard disk products will likely continue into this quarter and potentially become a predominant theme for the entire year of 2024. Specifically, the agency anticipates hard disk prices will continue to rise in the second quarter of this year, with an expected increase of 5% to 10%
| Company | 3Q23 (Revenue) | Q0Q (%) (Revenue) | 3Q23 (Market Share) | 2Q23 (Market Share) |
|---|---|---|---|---|
| Samsung | 2,900.0 | 0.0% | 31.4% | 32.3% |
| SK Group | 1,864.0 | 11.9% | 20.2% | 18.6% |
| WDC | 1,556.0 | 13.0% | 16.9% | 15.3% |
| Kioxia | 1,336.0 | -8.6% | 14.5% | 16.3% |
| Micron | 1,150.0 | -5.2% | 12.5% | 13.5% |
| Others | 423.1 | 19.3% | 4.6% | 4.0% |
| Total | 9,229.1 | 2.9% | 100.0% | 100.0% |
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