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WDC » Topics » Our failure to accurately forecast market and customer demand for our products could adversely affect our business and financial results.These excerpts taken from the WDC 10-K filed Aug 20, 2008. Our
failure to accurately forecast market and customer demand for
our products could adversely affect our business and financial
results.
The hard drive industry faces difficulties in accurately
forecasting market and customer demand for its products. The
variety and volume of products we manufacture is based in part
on these forecasts. If our forecasts exceed actual market
demand, or if market demand decreases significantly from our
forecasts, then we could experience periods of product
oversupply and price decreases, which could impact our financial
performance. If our forecasts do not meet actual market demand,
or if market demand increases significantly beyond our forecasts
or beyond our ability to add
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manufacturing capacity, then we may not be able to satisfy
customer product needs, which could result in a loss of market
share if our competitors are able to meet customer demands.
We also use forecasts in making decisions regarding investment
of our resources. For example, as the hard drive industry
transitions from the Parallel Advanced Technology Attachment
(“PATA”) interface to the SATA interface, we may
invest more resources in the development of products using the
SATA interface. If our forecasts regarding the replacement of
the PATA interface with the SATA interface are inaccurate, we
may not have products available to meet our customers’
needs.
In addition, although we receive forecasts from our customers,
they are not generally obligated to purchase the forecasted
amounts. In particular, sales volumes in the distribution and
retail channels are volatile and harder to predict than sales to
our OEM or ODM customers. We consider these forecasts in
determining our component needs and our inventory requirements.
If we fail to accurately forecast our customers’ product
demands, we may have inadequate or excess inventory of our
products or components, which could adversely affect our
operating results.
Our failure to accurately forecast market and customer demand for our products could adversely affect our business and financial results. The hard drive industry faces difficulties in accurately forecasting market and customer demand for its products. The variety and volume of products we manufacture is based in part on these forecasts. If our forecasts exceed actual market demand, or if market demand decreases significantly from our forecasts, then we could experience periods of product oversupply and price decreases, which could impact our financial performance. If our forecasts do not meet actual market demand, or if market demand increases significantly beyond our forecasts or beyond our ability to add
Table of Contentsmanufacturing capacity, then we may not be able to satisfy customer product needs, which could result in a loss of market share if our competitors are able to meet customer demands. We also use forecasts in making decisions regarding investment of our resources. For example, as the hard drive industry transitions from the Parallel Advanced Technology Attachment (“PATA”) interface to the SATA interface, we may invest more resources in the development of products using the SATA interface. If our forecasts regarding the replacement of the PATA interface with the SATA interface are inaccurate, we may not have products available to meet our customers’ needs. In addition, although we receive forecasts from our customers, they are not generally obligated to purchase the forecasted amounts. In particular, sales volumes in the distribution and retail channels are volatile and harder to predict than sales to our OEM or ODM customers. We consider these forecasts in determining our component needs and our inventory requirements. If we fail to accurately forecast our customers’ product demands, we may have inadequate or excess inventory of our products or components, which could adversely affect our operating results. This excerpt taken from the WDC 10-K filed Aug 28, 2007. Our
failure to accurately forecast market and customer demand for
our products could adversely affect our business and financial
results.
The hard drive industry faces difficulties in accurately
forecasting market and customer demand for its products. The
variety and volume of products we manufacture is based in part
on these forecasts. If our forecasts exceed actual market
demand, or if market demand decreases significantly from our
forecasts, then we could experience periods of product
oversupply and price decreases, which could impact our financial
performance. If our forecasts do not meet actual market demand,
of if market demand increases significantly beyond our
forecasts, then we may not be able to satisfy customer product
needs, which could result in a loss of market share if our
competitors are able to meet customer demands.
We also use forecasts in making decisions regarding investment
of our resources. For example, as the hard drive industry
transitions from the Parallel Advanced Technology Attachment
(“PATA”) interface to the SATA interface, we may
invest more resources in the development of products using the
SATA interface. If our forecasts regarding the replacement of
the PATA interface with the SATA interface are inaccurate, we
may not have products available to meet our customers’
needs.
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In addition, although we receive forecasts from our customers,
they are not obligated to purchase the forecasted amounts. In
particular, sales volumes in the distribution channel are
volatile and harder to predict than sales to our OEM or ODM
customers. We consider these forecasts in determining our
component needs and our inventory requirements. If we fail to
accurately forecast our customers’ product demands, we may
have inadequate or excess inventory of our products or
components, which could adversely affect our operating results.
This excerpt taken from the WDC 10-K filed Nov 20, 2006. Our
failure to accurately forecast market and customer demand for
our products could adversely affect our business and financial
results.
The hard drive industry faces difficulties in accurately
forecasting market and customer demand for its products. The
variety and volume of products we manufacture is based in part
on these forecasts. If our forecasts exceed actual market
demand, or if market demand decreases significantly from our
forecasts, then we could experience periods of product
oversupply and price decreases, which could impact our financial
performance. If our forecasts do not meet actual market demand,
of if market demand increases significantly beyond our
forecasts, then we may not be able to satisfy customer product
needs, which could result in a loss of market share if our
competitors are able to meet customer demands.
We also use forecasts in making decisions regarding investment
of our resources. For example, as the hard drive industry
transitions from the Parallel Advanced Technology Attachment
(“PATA”) interface to the SATA interface, we may
invest more resources in the development of products using the
SATA interface. If our forecasts regarding the replacement of
the PATA interface with the SATA interface are inaccurate, we
may not have products available to meet our customers’
needs.
In addition, although we receive forecasts from our customers,
they are not obligated to purchase the forecasted amounts. In
particular, sales volumes in the distribution channel are
volatile and harder to predict than sales to our OEM customers.
We consider these forecasts in determining our component needs
and our inventory requirements. If we fail to accurately
forecast our customers’ product demands, we may have
inadequate or excess inventory of our products or components,
which could adversely affect our operating results.
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