Transcend are a Taiwanese firm who make MP3 players and flash memory cards. They claim that due to the stabilising of microchip prices and a growing demand for MP3 players their profits are due to increase, giving them a double digit profit margin. This is good news for Transcend after they an initially slow start to the year with a poor first quarter.

Steve Chang, Vice President of Transcend said in an interview with news agency firm Reuters:

The first quarter was a bottom and the gross profit margin already rebounded to above 10 percent in April and May.

Steve Chang claims that Transcend’s margin will hit the double digits in terms of percent by the 2nd and 3rd quarters. Apparently Transcend expect the numbers of MP3 players that are shipped this year to be double that of last year.

40% of Transcend’s revenues from the DRAM (Dynamic random access memory) chips that the company manufactures. The chips are then used in servers and home computers.

Transcend have been in business for just 20 years and also manufacture flash cards for mobile phones and digital cameras.