OCZ Leaves RAM Market

January 11, 2011 // 4:04 p.m.

Tags: #dram #memory #ocz #ram #ssd

OCZ has surprised the industry by announcing its departure from the DRAM market in order to concentrate on the increasingly lucrative SSD sector.

In figures unveiled as a part of the company's regular earnings call, OCZ explained that it made a mere 22 percent of its revenue from DRAM products in the third financial quarter of this year.

Ryan Petersen, chief executive officer at OCZ, explained that 'we have focused on building the OEM and enterprise segments of our business, and last month we announced a mass production order from a Tier-1 OEM for our enterprise-class SSDs, reflecting the reliability, speed and total cost of ownership solid state drives provide over traditional mechanical hard drives.

'We believe the market opportunity for SSDs is significant, and to that end, we will continue to invest in research and development to extend our leadership position, and we also plan to increase our sales and marketing efforts in order to facilitate continued revenue growth and increased market share as SSDs gain adoption in all segments.'


The move out of the DRAM market comes after an announcement in August last year that the company would no longer make entry-level DRAM, and would instead concentrate its efforts at the higher-performance - and therefore more profitable - end of the market.

The company's exit from the DRAM market is expected to be completed by 28 February, although it will take time for stock to work its way out of retailers' inventories.

With DRAM prices continuing to fall globally, OCZ might be picking the right time to leave the market. However, the loss of its well-regarded products, including the recently launched Blade 2 and XTE series, will be a blow for some overclockers.

Is OCZ right to concentrate on SSDs instead of memory, or should the company look at getting back into the DRAM market once prices pick up again? Share your thoughts over in the forums.

WEEK IN REVIEW

TOP STORIES

SUGGESTED FOR YOU