Global enterprise SSD market: Surge in inventory and 47.3% drop in Q12023 revenue

TrendForce reports that an amalgamation of off-season effects and high inflation caused a slump in purchasing enthusiasm in markets like North American server ODM and China. This led to a surge in Q1 inventory levels for enterprise SSD suppliers, contrary to the anticipated reduction. The situation was not remedied by a decrease in production either, forcing suppliers to resort to price cuts to boost shipment volumes. Additionally, the strain from high inflation eroded purchasing momentum in these markets, instigating a simultaneous dip in both volume and price for enterprise SSDs. This resulted in a significant 47.3% decline in Q1 revenue, reducing it to US$1.998 billion. However, after the Q1 inventory liquidation, there’s been a projected slight uptick in purchasing demand for server ODM orders in Q2. Consequently, enterprise SSD suppliers’ revenue is anticipated to revert to a growth trajectory in the second quarter. Kioxia rose to third place in Q1 despite its enterprise SSD revenue dropping 39.7% to approximately US$296 million. TrendForce asserts that Kioxia’s long-term trajectory will be influenced significantly by the potential completion of its merger with WDC. This merger could reshape future R&D strategies for enterprise SSD products. WDC may shift its focus toward the development of client SSDs if further opportunities for integration arise. Concurrently, Kioxia...