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SSD revenues continue to grow in spite of price increases

Combined revenues from storage products sold to enterprise customers through the distribution channel in Western Europe (WE) showed growth of +0.9% year-on-year in January 2017, according to data published by CONTEXT, the leading European IT market analysis company. This includes a further decline of -15.4% in sales of hard disk drive (HDD) products from original equipment manufacturers (OEMs) in dedicated storage environments. In contrast, sales of dedicated storage solid state disk (SSD) drives from OEMs to the same market grew by +56.9%. "This follows comparatively meager growth of only +6.2% year-on-year in December 2016 that was driven by lower demand and also influenced by increased average selling prices due to recent component shortages", said Mathias Knoefel, Corporate Benchmarking and Enterprise Analyst at CONTEXT.

Revenue from OEM HDD storage declined by -34.1% in the same month, affected by lack of demand. Looking at the WE January 2017 revenues for these two product segments suggests that SSDs could maintain the top position they reclaimed in December 2016. Average Selling Prices for one of the largest SSD revenue drivers – 3.84TB SSDs, which account for 21.8% of revenues – have dropped by -13.7%, from €4,661.38 in January 2016 to €4,021.01 in January 2017. However, there has been an increase in the shorter term with ASPs rising by +3.9% from December 2016 to January 2017.

Year-on-year growth for SSDs and HDDs

Country Solid State Drives (SSDs) Hard Disk Drives (HDDs)
Austria +27.1% -44.5%
Belgium +65% +39.6%
Denmark +1% -11.4%
Finland -64.8% -24.8%
France +57% -10%
Germany +114.6% +33.1%
Ireland +530% +17.8%
Italy +125.1% -7%
Netherlands +161.2% -28.3%
Norway +283.9% -18.2%
Portugal +614.3% +352.2%
Spain +10.8% -43.4%
Sweden -41.7% -57.6%
Switzerland -13.3% +0.6%
United Kingdom +18% -38.1%