WDC » Topics » Changes in product life cycles could adversely affect our financial results.

These excerpts taken from the WDC 10-K filed Aug 20, 2008.
Changes in product life cycles could adversely affect our financial results.
 
If product life cycles lengthen, we may need to develop new technologies or programs to reduce our costs on any particular product to maintain competitive pricing for that product. If product life cycles shorten, it may result in an increase in our overall expenses and a decrease in our gross margins, both of which could adversely affect our operating results. In addition, shortening of product life cycles also make it more difficult to recover the cost of product development before the product becomes obsolete. Our failure to recover the cost of product development in the future could adversely affect our operating results.
 
Changes
in product life cycles could adversely affect our financial
results.



 



If product life cycles lengthen, we may need to develop new
technologies or programs to reduce our costs on any particular
product to maintain competitive pricing for that product. If
product life cycles shorten, it may result in an increase in our
overall expenses and a decrease in our gross margins, both of
which could adversely affect our operating results. In addition,
shortening of product life cycles also make it more difficult to
recover the cost of product development before the product
becomes obsolete. Our failure to recover the cost of product
development in the future could adversely affect our operating
results.


 




This excerpt taken from the WDC 10-K filed Aug 28, 2007.
Changes in product life cycles could adversely affect our financial results.
 
Product life cycles lengthened over the four years beginning in calendar year 2002 due in large part to a decrease in the rate of hard drive areal density growth. However, with the use of perpendicular recording in hard drives beginning in calendar year 2006, we anticipate that the life cycle of these products may shorten. If product life cycles lengthen, we may need to develop new technologies or programs to reduce our costs on any particular product to maintain competitive pricing for that product. This may result in an increase in our overall expenses and a decrease in our gross margins, both of which could adversely affect our operating results. If product life cycles shorten, it may be more difficult to recover the cost of product development before the product becomes obsolete. Our failure to recover the cost of product development in the future could adversely affect our operating results.
 
This excerpt taken from the WDC 10-K filed Nov 20, 2006.
Changes in product life cycles could adversely affect our financial results.
 
Product life cycles have been extending since the middle of calendar year 2002 due in large part to a decrease in the rate of hard drive areal density growth. However, there can be no assurance that this trend will continue. If longer product life cycles continue, we may need to develop new technologies or programs to reduce our costs on any particular product to maintain competitive pricing for that product. This may result in an increase in our overall expenses and a decrease in our gross margins, both of which could adversely affect our operating results. If product life cycles shorten, it may be more difficult to recover the cost of product development before the product becomes obsolete. Our failure to recover the cost of product development in the future could adversely affect our operating results.
 
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