China's domestic SSD brands expand market share amid AI-driven NAND tightness and growing supply chain advantage in Q2

Futuresource recently published its HDD, SSD and DRAM's Q2 quarterly tracking reports, which highlighted a broad-based market correction across China's storage industry, although performance varied significantly by product category.  

DRAM shipments recorded the steepest decline, falling 40.6% quarter on quarter, while SSD volumes decreased by 24.4% as channel demand softened and inventories continued to normalise.  

In contrast, the HDD market remained comparatively resilient. Internal HDD shipments declined by just 6.4% QoQ, while external HDD volumes fell by a modest 2.3%, supported by steady demand for high-capacity storage solutions. Consequently, HDD significantly outperformed flash-based categories during the quarter, highlighting the relative stability of capacity-driven storage demand despite weaker consumer spending and ongoing adjustments across the memory market. 

The quarterly results also suggest that beyond the category-level correction, Q2 2026 also reflected a gradual stabilisation of China's storage market. While inventory normalisation helped ease the pricing-demand disconnect seen in late 2025 and early 2026, AI-driven pressure on NAND supply continued to reshape competition. Domestic SSD vendors benefited from local NAND sourcing, manufacturing flexibility, and stronger supply-chain control, enabling further market share gains, while international brands continued to face NAND allocation constraints and intermittent stock shortages. 

Market dynamics shift as China’s consumer SSD market adapts to a new pricing environment 

China’s consumer SSD channel market continued to evolve in Q2 2026 as the industry adapted to a higher-cost operating environment. With NAND price increases proving more persistent than many channel partners initially expected, the market gradually moved away from expectations of a near-term price correction and began accepting elevated SSD pricing as the new normal. This shift coincided with ongoing capacity migration, with 1TB firmly establishing itself as the mainstream SSD capacity point, while 512GB products increasingly served as entry-level offerings and demand for 2TB solutions started to grow among performance-oriented users. 

At the same time, competitive dynamics continued to evolve. As domestic brands expanded their collective market presence, competition became less defined by international-versus-local vendors and increasingly centred on rivalries among leading Chinese brands such as Zhitai, Lexar and Biwin-affiliated brands. This reflects a maturing market in which share gains are increasingly determined by execution, product positioning and supply-chain capabilities rather than pricing alone. 

AI and supply chain transformation redefine competitive advantage 

Beneath these market shifts, Q2 underscored the growing maturity of China's SSD ecosystem. Stronger domestic supply chains and wider adoption of locally integrated SSD solutions helped domestic brands further strengthen their market position. As a result, domestic SSD products are increasingly viewed not merely as low-cost alternatives, but as mainstream solutions capable of competing across both performance and value segments. 

The quarter also demonstrated the growing importance of multi-brand strategies, with vendors expanding their reach across mainstream, performance, and gaming segments through diversified brand portfolios. Biwin, for instance, continued to operate across multiple SSD brands, including Biwin, HP, Acer, and Predator. Combined with stronger access to NAND resources and manufacturing capacity, these strategies enhanced vendor flexibility in product allocation, channel coverage, and inventory management. 

Against the backdrop of sustained AI-driven demand for enterprise storage, competitive advantage continued to shift from pricing toward resource access and supply assurance. Vendors with stronger local supply-chain integration and long-term NAND procurement relationships were better positioned to maintain product availability and capitalize on market opportunities, while many international brands continued to face allocation constraints and intermittent stock shortages. 

To learn more about the HDD, SSD and DRAM's Q2 quarterly tracking reports, please get in touch with Mats at mats.larsson@futuresource-hq.com.  

About Futuresource Consulting  

Futuresource Consulting provides specialist market research and strategic advice across consumer electronics, entertainment, education and Pro AV. Its coverage spans devices, content and services, education technology, professional audio, displays and collaboration. Combining original research with the independent judgement of experienced analysts, it helps clients understand demand, evaluate opportunities and make informed commercial decisions.  

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