Major players in the memory and storage sectors, Micron and SanDisk, are preparing for significant price increases in NAND and DRAM products, a move expected to impact consumers in the coming weeks as the Black Friday shopping season approaches. The anticipated price adjustments come amid signs of tightening supply and shifting market dynamics.
As demand for memory products rises, Micron has halted its quotations for NAND and DRAM, suggesting that sharper price hikes are imminent. In a related development, SanDisk has reportedly initiated a 10% increase in the prices of its NAND products, aiming to bolster market sentiment. This strategy reflects the suppliers’ efforts to recover profit margins as they navigate anticipated supply shortages projected for 2026.
Market Reactions and Trends
Recent data from TrendForce indicates that spot prices for DRAM are on the rise, particularly for DDR4 products. In a notable shift, the average spot price for mainstream DDR4 1Gx8 3200MT/s chips increased by 3.31%, climbing from $4.896 to $5.058 within a week. Despite this upward movement, transaction volumes are declining as buyers become increasingly resistant to higher prices.
The situation is less favorable for DDR5 chips, which have seen stagnant spot trading, reflecting ongoing concerns about costs and limited immediate demand growth. Buyers appear hesitant to commit to purchases at elevated prices, further complicating the market landscape.
While SanDisk aims to raise NAND prices, buyers have been slow to adopt these increases, especially with peak-season stocking activity now behind them. Although the spot price of 512Gb TLC wafers has risen by approximately 1.5%, most price adjustments have been confined to distribution channels rather than the retail market. If this trend continues, consumers may soon face higher costs for solid-state drives (SSDs) and related products.
Financial Performance and Future Outlook
SanDisk’s recent financial results provide insight into the rationale behind these aggressive pricing strategies. The company reported quarterly revenues of $1.901 billion, marking a 12% increase from the previous quarter and an 8% year-over-year growth. For fiscal year 2025, revenues reached $7.355 billion, a 10% increase compared to fiscal 2024. This growth has been supported by modest gains in bit shipments and average selling prices, indicating sustained demand across key sectors.
SanDisk’s data center business accounted for over 12% of total bits shipped, while cloud revenue surged by 25% year-over-year to $213 million. These figures suggest that enterprise customers are willing to accept higher costs, providing suppliers with a solid foundation to push DRAM and NAND prices upward.
As suppliers remain firm in their pricing strategies, both enterprise clients and consumers may face increased costs as the holiday shopping season approaches. Rising prices for DRAM and NAND could tighten profit margins for retailers and integrators, especially if buyers postpone purchases in anticipation of price stabilization.
For consumers, any temporary relief from storage deals might be fleeting, making this Black Friday one of the more unpredictable shopping seasons in recent history. With market dynamics shifting rapidly, stakeholders across the industry will need to navigate these changes carefully to adapt to evolving conditions.
