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WDC » Topics » If we fail to qualify our products with our customers, they may not purchase any units of a particular product line, which would have a significant adverse impact on our sales.These excerpts taken from the WDC 10-K filed Aug 20, 2008. If we
fail to qualify our products with our customers, they may not
purchase any units of a particular product line, which would
have a significant adverse impact on our sales.
We regularly engage in new product qualification with our
customers. Once a product is accepted for qualification testing,
failures or delays in the qualification process can result in
our losing sales to that customer until the next generation of
products is introduced. The effect of missing a product
qualification opportunity is magnified by the limited number of
high volume OEMs, which continue to consolidate their share of
the PC and CE markets. If product life cycles lengthen, we may
have a significantly longer period to wait before we have an
opportunity to qualify a new product with a customer, which
could harm our competitive position. These risks are increased
because we expect cost improvements and competitive pressures to
result in declining gross margins on our current generation
products.
If we fail to qualify our products with our customers, they may not purchase any units of a particular product line, which would have a significant adverse impact on our sales. We regularly engage in new product qualification with our customers. Once a product is accepted for qualification testing, failures or delays in the qualification process can result in our losing sales to that customer until the next generation of products is introduced. The effect of missing a product qualification opportunity is magnified by the limited number of high volume OEMs, which continue to consolidate their share of the PC and CE markets. If product life cycles lengthen, we may have a significantly longer period to wait before we have an opportunity to qualify a new product with a customer, which could harm our competitive position. These risks are increased because we expect cost improvements and competitive pressures to result in declining gross margins on our current generation products. This excerpt taken from the WDC 10-K filed Aug 28, 2007. If we
fail to qualify our products with our customers, they may not
purchase any units of a particular product line, which would
have a significant adverse impact on our sales.
We regularly engage in new product qualification with our
customers. Once a product is accepted for qualification testing,
failures or delays in the qualification process can result in
our losing sales to that customer until the next generation of
products is introduced. The effect of missing a product
qualification opportunity is magnified by the limited number of
high volume OEMs, which continue to consolidate their share of
the PC and CE markets. If product life cycles lengthen, we may
have a significantly longer period to wait before we have an
opportunity to qualify a new product with a customer, which
could harm our competitive position. These risks are increased
because we expect cost improvements and competitive pressures to
result in declining gross margins on our current generation
products.
This excerpt taken from the WDC 10-K filed Nov 20, 2006. If we
fail to qualify our products with our customers, they may not
purchase any units of a particular product line, which would
have a significant adverse impact on our sales.
We regularly engage in new product qualification with our
customers. To be considered for qualification, we must be among
the leaders in
time-to-market
with our new products. Once a product is accepted for
qualification testing, failures or delays in the qualification
process can result in our losing sales to that customer until
the next generation of products is introduced. The effect of
missing a product qualification opportunity is magnified by the
limited number of high volume OEMs, which continue to
consolidate their share of the desktop, mobile and CE markets.
If product life cycles continue to be extended due to a decrease
in the rate of areal density growth, we may have a significantly
longer period to wait before we have an opportunity to qualify a
new product with a customer, which could harm our competitive
position. These risks are increased because we expect cost
improvements and competitive pressures to result in declining
gross margins on our current generation products.
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