Why Have Memory and Solid-State Drives Started to Increase in Price?
Is it because everyone’s demand has increased that prices have risen? Are there any other reasons?
Smart Investment Strategies in a Fluctuating Market
When prices fall, instead of stockpiling, people often wait, thinking prices may drop further. This is a contradictory approach.
The correct method is to keep buying small quantities during price drops. For example, if you initially bought goods worth 100,000 at 500 each, and after three months, the same goods cost 80,000, buy more. Now, you’ve spent 180,000 in total, but for 400 units, the average cost per unit becomes 450, cheaper than the initial price.
As prices gradually increase, say to 550, sell 200 units to recover 110,000. If the price hits 600, selling another 100 units recovers 60,000, leaving 100 units. Selling these can net a profit of 50,000.
Thus, with the right investment, profit is inevitable.
Dealers who complain about losses are often reluctant to invest more when needed. Isn’t the opportunity to earn just lying there?
After all, storing 400 units of solid-state drives isn’t much of a hassle; they don’t spoil.
Even on a one-year cycle, investing 180,000 and earning 50,000 is a high return rate.
If there’s an essential need, not buying implies it’s not a genuine need. For real needs, you’d buy even at higher prices.
500GB solid-state drives in 2021 were about 1 per GB.
1TB drives a year later were roughly 0.7 per GB, and after another seven months,
2TB drives were about 0.5-0.6 per GB. Then, they dropped to about 0.25 per GB – a bargain not to be missed.
4TB+2TB x 3
So, even without immediate need, one can create demand. I bought 10TB of solid-state storage at rock-bottom prices, ensuring years of use. Although it seemed like an initial loss, the average cost eventually balanced out with larger investments at lower prices.
Let’s calculate: 500+1000+2000+4000+2000 x 3=13.5TB. The total investment over this period was 508.98+673.36+1128.54+1098+1556.98=4965.86, amounting to 13500GB. The average cost was less than 0.37 per GB, close to the final bottom price of 0.25 per GB.
Staying calm and strategic turns a bad hand into a winning one: buy what’s needed, and if it’s too expensive, buy just enough. When prices truly drop, stock up, even if it means creating demand. So, when prices started recovering in September, while others complained about rising solid-state drive prices, I was already profiting.
Small losses can be a blessing. It’s important to seize opportunities. Those who wait too long are like novices in the market.
If you treat market fluctuations as a business opportunity, investing wisely, you can consistently profit.
point for SSD prices was likely during the 618 sales event in 2023.
Even though prices have slightly increased since the historic low, the increase seems more like a strategic adjustment by manufacturers to stabilize the market and establish a reputation for domestic brands, aiming for higher profits. These profits are likely to be reinvested into the development of next-generation technologies.
Historically, storage chip prices have consistently fallen with each technological advancement, eventually becoming obsolete. However, new technologies and products continually enter the market, replacing older ones at various price points.
Even with the recent price rebound, the overall decrease in price is still significant. For instance, buying a 4TB SSD with PCIe 4.0 for a little over a thousand was unimaginable before the 2023 price drop.
The hope is for more breakthroughs in China’s supply chain and semiconductor industry. With the capacity of Eastern manufacturing, global prices can be significantly reduced and the market reshaped. Redefining standards in the high-tech field and capturing the global market is the key to development.
It dropped abnormally during that period in June…
It’s essentially a matter of supply and demand. Before 2022, due to the impact of the pandemic, there was an accumulation of production by businesses, and demand decreased. However, after the beginning of 2023, demand started to recover, and the previous reduction in production by businesses due to the accumulation of inventory resulted in a supply shortage, naturally leading to price increases. In fact, non-monopoly bulk commodities follow a similar pattern, much like the cyclical ups and downs of stocks.
Major manufacturers restrict production and practice scarcity.
It’s the same old routine.
In the past, there were earthquakes, workshop fires, and so on.
Now they don’t even bother acting. They just raise prices.
Stocks don’t always go up or down continuously, right?