OCZ Technology shifted its corporate focus away from legacy DRAM memory modules in 2011, and has since built on its expertise in high-speed memory to become a leader in the design and manufacturing of solid state drives (SSDs). The year 2012 was another year of transition for the company, which moved to reduce its reliance on the consumer market and increase focus on delivering high performance, client and enterprise solid state storage solutions.Alex Mei, chief marketing officer (CMO) at OCZ, talked about the company's new products and recent achievements, and shared his views on the SSD market, in a recent interview with Digitimes.Q: How did OCZ and the storage market as a whole perform over the past year?A: The SSD market matured greatly over the last year as more and more customers across both the client and enterprise spectrum adopted solid state technology for use in everything from ultraslim notebooks to the data center. Unlike many other product segments, the SSD market has continued to grow as storage and data processing continue to drive demand.Last year was a year of transition for OCZ as the company exited a number of markets that have become highly commoditized; for example, the value SSD market where price is a primary factor. Rather than compete in the highly price-oriented value market, OCZ focused on introducing new differentiated products that leverage our own in-house IP. Examples of this include our Vector and Vertex 450 series drives which make use of OCZ's proprietary Barefoot 3 controller. The company also continued to push into the enterprise and shifted the mix between client and enterprise products.Q: What is your direction on the enterprise market? Do you see growth in PCIe?A: Today SATA continues to represent the largest portion of client and enterprise SSD sales for OCZ, but we continue to see not only opportunity but growth in PCIe-based SSDs. On the enterprise server and data center storage front, PCIe and SAS continue to grow as slots are available and PCIe delivers the highest performance and density. OCZ not only offers PCIe-based edge cards that are ideal for tiered and primary storage; we also have focused on combining the hardware with software for a complete solution. For example, our ZD-XL SQL accelerator is easy to deploy integrated hardware/software storage solution that accelerates and optimizes Microsoft SQL Server database applications in enterprise environments.Q: What about workstation class PCIe, like your current RevoDrive series?A: Client and workstation PCIe adoption also continues to increase as customers are looking for faster and higher density solutions that offer improved bandwidth over what traditional SATA interface and drives can provide. We are finding that the RevoDrive series has become popular among workstation users, enthusiasts looking for the highest transfer rates in high performance desktops, graphic designers and customers that put a premium on high speed processing when creating digital content. Moving forward you can see us continue to expand the RevoDrive series utilizing our own controllers.Q: Can you talk about the client market and what it means for OCZ?A: Though we have put a great deal of emphasis on growing our enterprise business, we have also remained committed to the client market.Rather than sell products in the value segment, our product line now focuses primarily on the high-end and enthusiast space where we can differentiate and add value. Because OCZ has in-house controller and firmware technology, we are able to design drives that provide superior performance and features with the latest NAND. We are always looking for ways to improve performance, reliability and endurance.For example, our flagship Vector line was designed to address both high performance and workstation applications so we focused on delivering superior sustained performance. While some competing drives perform great when they are fresh-out-of-the-box, that performance degrades quickly once the drives are in a "dirty" state. The Vector gets consistently faster sustained speeds with the complete spectrum of file types and sizes, including both compressible and incompressible data for balanced, long-lasting performance so that customers enjoy a superior overall computing experience over the long term. OCZ will continue to introduce high performance client drives whenever we can add value for end users.Q: You launched new drives (Vector and Vertex 450) based on your own in-house controller and firmware. How are these products being received by customers?A: Very well. Unfortunately over the past year we have had some NAND supply issues that have impacted our ability to provide some of the higher capacities, but in terms of performance and features, both these award-winning product lines have been utilized by customers in everything from gaming rigs to the latest mobile platforms. The OCZ Barefoot 3 controller and our in-house firmware help make the Vector series among the highest performing client drives on the market. Because we have this proprietary technology we are able to leverage the latest NAND types, including 19nm in our upcoming Vector 150 series, which is designed to shatter performance and endurance barriers once again.Q: Can you tell us more about your enterprise SSD strategy?A: Our enterprise strategy is to deliver superior value and features to our customers across a wide range of solutions. I say "solutions" because we are selling so much more than just enterprise SSD hardware.While we offer traditional SATA, SAS and PCIe enterprise SSDs, we also provide enterprise software under our XL series that address everything from virtualization (VXL software) to database (ZD-XL SQL accelerator) and enterprise storage central management (StoragePro XL software). Together our enterprise hardware and software represent a complete solution that enables enterprise customers to get the most out of their flash-based storage.OCZ will continue to develop plug-and-play solutions like our ZD-XL SQL accelerator that address specific applications, making it easier than ever for storage architects to deploy and start realizing the benefits of enterprise SSDs.Q: Can you talk about the partnerships OCZ has established over the past year? And how they will contribute to company growth?A: On the partnership side, OCZ continues to establish strategic partnerships on both the supply and distribution sides of the business.The ability to develop our own controllers has enabled the company to be flash agnostic, allowing us to work with a wider range of NAND providers which improves availability of high-end flash. We have built up strong partnerships with the fabs that have helped fuel our enterprise data center growth, ensuring high quality and supply.To make our solutions more accessible worldwide, OCZ has partnered with new distributors, like TechData for example, that allow us to better support the VAR channel. All of this has helped OCZ grow our enterprise and client SSD availability and reach.Q: Can you share your views about the outlook for SSD? What is your business outlook for 2014?A: The SSD market will continue to grow in terms of units sold as well as the number of devices that come integrated with this technology.Previous objections in the enterprise like capacity and endurance are becoming less of an issue as the controller and firmware advancements help mitigate the issues with die shrinks, which at the same time help reduce cost and improve TCO for customers. At the same time we realize that while the SSD market continues to mature it becomes even more critical for us to differentiate our products, both through improved performance and feature-set.SATA will continue to be the majority of the SSD market, but in 2014 we can expect to see rapid growth in the PCIe market, especially in the enterprise. For these reasons OCZ will continue to invest in developing next generation controllers that provide native support for these key interfaces and continue to work on improving access to the latest cutting-edge NAND. The SSD market continues to heat up and this is an exciting time for customers as the technology is now becoming much more mainstream and will improve everything from immersing yourself in the latest game title to accessing cloud-based applications.OCZ CMO Alex MeiPhoto: Company

Average retail prices for LED light bulbs equivalent to 40W and 60W incandescent ones in the Japan market stood at JPY1,717 (US$17.2) and JPY2,468 respectively in October, slipping on month by 3.2% and 3.7% respectively, according to Digitimes Research.October average retail prices for 40W- and 60W-equivalent LED light bulbs in other markets are as follows: US$21.40 (up 1.9% on month) and US$24 (down 10.1%) in the US; EUR14 (US$18.70, down 3.4%) and EUR17.60 (down 0.6%) in Europe; KRW15,157 (US$14.1, up 3.1%) and KRW15,685 (up 5%) in Korea, Digitimes Research indicated.In the China market, October average retail price for 7W LED light bulbs stood at CNY43.8 (US$7.2, up 1.9%) and CNY55.4 (down 0.4%) for 9W ones.LG 40W-equivalent LED light bulbs and Samsung 60W-equivalent models for sale in the US market had the highest average lumen-price ratio of 77.6lm/US$ and 72.7lm/US$ respectively in October. In terms of luminous efficiency, Sharp 40W-equivalent LED light bulbs and Toshiba 60W-equivalent models available in the Japan market had the highest average level of 75.6lm/W and 92.5lm/W respectively.

China white-box tablet shipments reached about 25 million units in the third quarter of 2013, up 56.3% sequentially and 40.4% on year thanks to strong overseas shipments, which accounted for 80% of the total volume. Among white-box tablet shipments, 7-inch models accounted for the largest share, while 8-inch models, which were originally expected to become new star products, were unable to do so because of high costs from the bezel design and limited supply of 8-inch panels.Although white-box tablets are expected to see extraordinary growth in 2013, they are also expected to face more obstacles and challenges in the future. First, they will see strong price competition from large brand vendors, which will offer Android-based products at price levels similar to those of white-box models. Second, the tablet market will gradually reach saturation and should no longer see demand as strong as before.Third, white-box tablet costs have already hit the bottom margin, causing related assembly service providers and component suppliers to see limited profits. Several unhealthy players were already been eliminated from the market at the end of the second quarter, while the remaining players will need to rely on pumping up their shipments to support their profitability. However, such a strategy is unlikely to sustain for long, Digitimes Research noted.Digitimes Research also found that white-box tablets in Europe or North America are mostly used as gifts in product promotions or bundling deals and therefore specifications are not as high as those of regular tablets. As for emerging markets such as Eastern Europe, Southeast Asia and Latin America, most consumers are buying white-box tablets with a single-core processor, because of limited purchasing power.As for application processors (APs), 70% of white-box tablets with phone functions adopted solutions from MediaTek in the third quarter, replacing the solutions from China-based Allwinner, the original favorite. Digitimes Research estimates that the proportion of white-box Wi-Fi-only tablets using MediaTek's solution will also increase dramatically starting the fourth quarter, further impacting China-based Allwinner and Rockchip's AP shipments. In addition to low prices, China-based AP suppliers will also need to consider how to create additional value for their APs to survive the competition.

US-based crystal growth solution and equipment provider GT Advanced Technologies (GTAT) has announced that Apple will pre-pay US$578 million to secure sapphire supply. GTAT will be able to use the funds to set up additional sapphire production capacity which will produce enough sapphire to make 5-inch screen covers for 33.79-50.56 million iPhones a year, Digitimes Research estimated.US$578 million can be used to procure 1,930-2,890 sapphire growing furnaces for a monthly production of 5.28-7.90 million mm of 2-inch-equivalent sapphire ingots, Digitimes Research indicated. Such a volume of sapphire ingots could be used to make screen covers for 33.79-50.56 million 5-inch iPhones a year, accounting for 17.8-26.6% of the estimated 190 million iPhones to be shipped in 2014.

Global LED tube shipments are expected to reach 380 million units in 2014 to give the technology a 9.74% penetration rate in the market, according to Digitimes Research.The lamps are becoming more in demand than fluorescent units due to their energy saving features and are also expected to have luminous efficiency of 200lm/W in 2014, twice that of T8 and T5 fluorescent units.Most vendors plan to sell the LED tubes for about US$27 in 2014 to attract more customers, added Digitimes Research.

GTAT has signed a multi-year sapphire materials agreement with Apple. Possible impacts on the industry: 1. The fourth quarter is tradtionally the LED sector's low season, during which sapphire prices should come down. However, 2-inch sapphire pricing is expected to inch up during the fourth quaeter of this year to reach US$4-4.5, as the prospect of sapphire being used in portable devices looks good. 2. Applications include: smartphone, tablet home buttons, camera lens, and even covers for iWatch and smarphones. 3. Why GTAT? One of the reasons is the US government hopes companies can move their production back to the US and create job opportunities. Another reason: GTAT's ingot growing technology can produce sapphire for large-size screens. 4. To make sure Apple will use sapphire as covers for tis devices and not competiting technologies (such as Corning's Gorilla Glass), the contract signed between Apple and GTAT requires Apple pre-pay US$578 million for equipment purchase. 5. Digitimes Research believes the US$578 million, if it's going to be all spent on buying ingot growing furnaces, will be enough to buy 2,000 units, or even more. The furnaces are estimated at US$200,000 to US$300,000 per unit, rather than the usual market price of US$600,000 quoted by GTAT. 6. The number of furnances seems high. If GTAT's target is to produce large-size 200kg ingots, monthly output could reach 5 million mm of 2-inch equivalents (yield rates not taken into consideration). 7. But if the output is meant to mainly cater to Apple's 5-inch handset screens in 2015, with the phone shipments estimated at 250 million units, the sapphire ingot capacity will still be 50%b short of demand. 8. Impact on the supply chain: Apple usually has second sources for its component supply. That means, Apple may find sufficient sapphire supply from other suppliers. 9. Potential beneficiaries: Including furnace suppliers for GTAT, KY ingot growing technology providers, and South Korea-based STC, who uses VHGF technology. Click here to see GTAT's annoucement of the deal.

Taiwan-based makers will ship a total of 17.14 million handsets in the fourth quarter of 2013, increasing 3.3% sequentially and 17.1% on year, and 99.71% of them will be smartphones, growing 4% sequentially and 26.2% on year, according to Digitimes Research.Of the shipments, 86.6% will be WCDMA models, 13.3% CDMA 2000, and 0.1% GSM, Digitimes Research indicated.HTC will be the largest maker accounting for 32.09% of the shipments, followed by Chi Mei Communication Systems (26.84%), Arima Communications (17.50%), Compal Communications (14.59%) and Wistron (4.08%).

Tablet shipments from major brand vendors worldwide are expected to reach 42.15 million units in the fourth quarter, up 18.1% sequentially, but down 2.5% on year, as the market has started maturing.Apple's new iPad Air and iPad mini with Retina display are expected to boost the US-based vendor's market share back to around 50% in the fourth quarter with Samsung Electronics to remain in second place. Amazon will become the third largest vendor thanks to strong demand for its Kindle devices. Lenovo, Asustek Computer and Acer are expected to be number four to six respectively, with Google dropping to seventh due to weaker-than-expected second-generation Nexus 7 sales.Apple, Marvell, Intel and MediaTek will be the top-4 tablet application processor (AP) suppliers in the fourth quarter. Texas Instruments (TI) will rise to number five because of orders for Amazon's Kindle Fire HD.As for detachable 2-in-1 devices, Microsoft and Intel's subsidies as well as the releases of the Bay Trail platform and Windows 8.1 are expected to pump up shipments for related products.Digitimes Research's figures show that Taiwan makers' tablet shipments will reach 29.67 million units in the fourth quarter, up 31.9% sequentially, but down 18.1% on year. During the quarter, Compal Electronics' tablet shipments will surpass those from Quanta Computer, thanks to growth in orders for the Kindle Fire HD. Quanta at the same time will see orders for the second-generation Nexus 7 drop.

The global top-5 notebook brand vendors saw their combined shipments drop 18% on month in October, while the top-3 notebook ODMs together also saw an on-month shipment drop of 14%.But one of the top-five vendors, Asustek Computer, actually enjoyed a 30% sequential shipment growth in October following the release of new entry-level models.Another top-five player, Hewlett-Packard (HP), saw a sharp drop to less than two million units in October after a particularly strong September where educational procurement orders shot up its shipments to 3.5 million units.HP's significant shipment drop in October took its toll on its ODM partners Inventec and Quanta. However, Quanta managed to see only an about 10% shipment drop in October because of support from orders from Asustek and Apple.Among Taiwan's ODMs, Pegatron Technology saw the strongest on-month shipments growth in October at over 40% thanks to Asustek's orders.The market got a sneak peek of Lenovo's Androidbook in October, but as Android-based notebooks' market postion is still unclear, Digitimes Research expects such a device to have difficulties achieving good sales initially.Dell, which completed its privatization on October 29, is said to be considering strengthening its consumer product lines, according to rumors circulating in the supply chain. Dell reportedly will release more new products, aiming to boost its shipment volume.Since Dell did not perform well in the consume market in the past, Digitimes Research is skeptical whether such a move by Dell would achieve good results.

Taiwan-based makers shipped a total of 21.039 million LCD monitors in third-quarter 2013, decreasing 4.1% sequentially and 15.8% on year to take a global market share of 61.4%, according to Digitimes Research.Of the shipments, 78.2% were shipped on an OEM/ODM basis, and 21.8% own-brand models, Digitimes Research indicated.TPV Technology was the largest maker accounting for 57.67% of the shipments, Qisda 16.94%, Foxconn Electronics (Hon Hai Precision Industry) 13.34%, Wistron 10.39% and Compal Electronics 1.25%.