‘OCZ exits budget drama market’

Due to too low margins, OCZ would no longer want to produce dram memory. Although the memory bars represent a large part of the company’s sales, they are said to contribute too little to the bottom line.

The producers of working memory have been struggling with declining revenues for some time. Production costs are rising, but end-user prices are out of step. This discrepancy leads to declining margins on memory chips for manufacturers. Memory manufacturer OCZ has felt the consequences of this in its operating result in the past two years and had to draw red numbers more than once.

Although the production of budget memory from the Value series amounted to seventy percent of OCZ’s dram production, the company wants to according to Stop Xbit. The margin on that seventy percent is only three percent. The space released on the production lines could be used to produce higher margin memory such as the Enthusiasts, Gamers and Special Edition series.

The company also wants to focus more on the production of solid state drives. The revenues from this account for fifty percent of the turnover. Moreover, OCZ expects to sell more SSDs in the future. Nand prices should drop to $1 per gigabyte by the end of the year, triggering wider adoption.