Windows 7: OCZ Stops Making DRAM, Focuses on SSDs

Colonel Travis · 14 Jan 2011

Only 22% revenue? Seems like they think they'll make that up, but that's a lot to chuck out the window.

Phone Man · 14 Jan 2011

Quote: Originally Posted by Colonel Travis

Only 22% revenue? Seems like they think they'll make that up, but that's a lot to chuck out the window.

But what is the profit margin on that 22%.

Jim

Colonel Travis · 15 Jan 2011

Great point, Jim. Looks like a smart move to me, although it stinks personally because I've bought their RAM for years. Taking a look at the story about this from last summer:

Quote:

OCZ has given word that they will begin to discontinue production of some of their lower-end, consumer DRAM modules. While these "commodity" level products had accounted for 70% of their DRAM revenue in the past year and a half, this only amounts to less than 3% of their gross margins. This has caused OCZ to post negative numbers several times over two years.

Then the other day they said:

Quote:

SSD revenues reached a record $41.5 million in Q3'11, an increase of 325% over Q3'10 SSD revenues of $9.8 million, and a 105% increase sequentially over Q2'11 SSD Revenues of $20.2 million.

seekermeister · 15 Jan 2011

I can't say that I will miss them, because they shafted me twice on rebates that I applied for on other products.

thefabe · 15 Jan 2011

I imagine we'll be seeing a lot of different companies shifting their product lines to a more profitable venue as things progress so fast in the computer hardware business.
Thanks for sharing
Fabe

Buddahfan · 15 Jan 2011

The move has already begun to DDR4

Samsung Develops World's First DDR4 Memory Module.

OCZ saw the writing on the wall and probably did not want to make the investment to get into this.

SSD drives can be assembled from components and are easier to assemble than manufacturing RAM. My guess is that OCZ will be converting to an assembly house and dropping production as such.

Phone Man · 15 Jan 2011

Quote: Originally Posted by Buddahfan

The move has already begun to DDR4

Samsung Develops World's First DDR4 Memory Module.

OCZ saw the writing on the wall and probably did not want to make the investment to get into this.

SSD drives can be assembled from components and are easier to assemble than manufacturing RAM. My guess is that OCZ will be converting to an assembly house and dropping production as such.

Does OCZ actually make the memory chips or just assemble the sticks. Or maybe they just contract out and have someone else produce the product with their name. I know they outsource their power supplies like most other vendors so I suspect they have done the same with their memory.

I have been using Crucial for years. They are part Micron who produces the chips and Crucial assembles and sells the sticks.

Jim

Buddahfan · 15 Jan 2011

Quote: Originally Posted by Phone Man

Quote: Originally Posted by Buddahfan

The move has already begun to DDR4

Samsung Develops World's First DDR4 Memory Module.

OCZ saw the writing on the wall and probably did not want to make the investment to get into this.

SSD drives can be assembled from components and are easier to assemble than manufacturing RAM. My guess is that OCZ will be converting to an assembly house and dropping production as such.

Does OCZ actually make the memory chips or just assemble the sticks. Or maybe they just contract out and have someone else produce the product with their name. I know they outsource their power supplies like most other vendors so I suspect they have done the same with their memory.

I have been using Crucial for years. They are part Micron who produces the chips and Crucial assembles and sells the sticks.

Jim

Good point. I had forgot about that possibility.

From their web site and 10K it sounds like they do not have any FAB factories.

Quote:

OCZ Technology was founded by enthusiasts, for enthusiasts, and our commitment to that end-user group has not digressed. Entering the memory market in 2002, OCZ was built around the determination to manufacture the very best high-speed memory for overclockers. In this pursuit, OCZ became the first manufacturer to make dual channel optimized memory kits available to the public, which originally took advantage of NVIDIA's Twinbank, or Dual DDR architecture, found in their nForce chipset. Over the last decade, we have maintained that thirst for innovation and performance leadership in multiple categories including power management and solid state storage.

OCZ

There manufacturing facility is only 41K sq. feet, about 200 x 200 feet

10-K