The expected growth in server shipments in 2023 has been revised down to 2.8%
- Starting from the third quarter of 2023, the delivery time of most orders for server-related components has returned to the normal state in the past. Suppliers have seen this and have begun to adjust inventory and reduce demand;
- The demand generated by the COVID-19 epidemic in the past two years is dissipating. Services such as streaming media and e-commerce have significantly cooled down. Many manufacturers have reduced their purchases for next year;
- With a negative view of the global economic outlook, many companies have formulated more conservative procurement plans to reduce IT-related expenditures next year.
Currently, competition among suppliers is also intensifying, leading to a continued decline in the prices of server DRAM modules and enterprise-level SSDs in the fourth quarter of 2022, and the quarter-on-quarter decline has expanded to between 23% and 28%. Sales are more difficult as buyers generally have higher inventory levels.
DRAM suppliers are trying to get some buyers to lock in prices for this quarter and the next, and the competitive pressure between them will be even greater next year. The shipments of enterprise-level SSDs have been stable. However, as quite a few companies have revised their spending plans in the second half of this year, NAND flash memory suppliers are also facing pressure from rising inventories. Solutions need to be found early, such as offering greater discounts on prices.