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These excerpts taken from the WDC 10-K filed Aug 20, 2008. Original
Equipment Manufacturers
Sales to OEMs, which include sales through ODMs, accounted for
51%, 48% and 54% of our hard drive revenue in 2008, 2007 and
2006, respectively. During 2008, no single customer accounted
for 10%, or more, of our revenue. During 2007 and 2006, sales to
Dell, Inc. accounted for 10% and 12%, respectively, of our
revenue. We believe that our success depends on our ability to
maintain and improve our strong relationships with the leading
OEMs.
OEMs evaluate and select their hard drive suppliers based on a
number of factors, including quality and reliability, storage
capacities, performance characteristics, price, service and
support, ease of doing business, and the supplier’s
long-term financial stability. They typically seek to qualify
two or more providers for each generation of hard drives, and
once an OEM has chosen its qualified hard drive vendors for a
given product, it generally will purchase hard drives from those
vendors for the life of that product. To achieve success with
OEM qualifications, a hard drive supplier must consistently
offer hard drives featuring leading technology, quality and
reliability at acceptable capacity per disk. Suppliers must
quickly achieve volume production of each new generation of high
quality and reliable hard drives, requiring access to flexible,
high-capacity, high-quality manufacturing capabilities.
Many of our OEM customers utilize
just-in-time
inventory management processes or supply chain business models
that combine “build-to-order,” in which they do not
build until there is a firm order, and “contract
manufacturing,” in which the OEM contracts assembly work to
a contract manufacturer, such as an ODM, who purchases
components and assembles the computer based on the OEM’s
instructions. For certain OEMs, we maintain a base stock of
finished goods inventory in facilities located near or adjacent
to the OEM’s operations.
For an additional discussion of risks related to our need to
adapt to our customers’ business models and maintain
customer satisfaction, refer to Item 1A of this Annual
Report on
Form 10-K.
Original Equipment Manufacturers Sales to OEMs, which include sales through ODMs, accounted for 51%, 48% and 54% of our hard drive revenue in 2008, 2007 and 2006, respectively. During 2008, no single customer accounted for 10%, or more, of our revenue. During 2007 and 2006, sales to Dell, Inc. accounted for 10% and 12%, respectively, of our revenue. We believe that our success depends on our ability to maintain and improve our strong relationships with the leading OEMs. OEMs evaluate and select their hard drive suppliers based on a number of factors, including quality and reliability, storage capacities, performance characteristics, price, service and support, ease of doing business, and the supplier’s long-term financial stability. They typically seek to qualify two or more providers for each generation of hard drives, and once an OEM has chosen its qualified hard drive vendors for a given product, it generally will purchase hard drives from those vendors for the life of that product. To achieve success with OEM qualifications, a hard drive supplier must consistently offer hard drives featuring leading technology, quality and reliability at acceptable capacity per disk. Suppliers must quickly achieve volume production of each new generation of high quality and reliable hard drives, requiring access to flexible, high-capacity, high-quality manufacturing capabilities. Many of our OEM customers utilize just-in-time inventory management processes or supply chain business models that combine “build-to-order,” in which they do not build until there is a firm order, and “contract manufacturing,” in which the OEM contracts assembly work to a contract manufacturer, such as an ODM, who purchases components and assembles the computer based on the OEM’s instructions. For certain OEMs, we maintain a base stock of finished goods inventory in facilities located near or adjacent to the OEM’s operations. For an additional discussion of risks related to our need to adapt to our customers’ business models and maintain customer satisfaction, refer to Item 1A of this Annual Report on Form 10-K. This excerpt taken from the WDC 10-K filed Aug 28, 2007. Original
Equipment Manufacturers
Sales to OEMs, which include sales through ODMs, accounted for
48%, 54% and 58% of our revenue in 2007, 2006 and 2005,
respectively. During 2007, our largest OEM customer was Dell.
During 2007, 2006 and 2005, sales to Dell accounted for 10%,
12%, and 16%, respectively, of our revenue. We believe that our
success depends on our ability to maintain and improve our
strong relationships with the leading OEMs.
Table of Contents
OEMs evaluate and select their hard drive suppliers based on a
number of factors, including quality and reliability, storage
capacities, performance characteristics, price, service and
support, ease of doing business, and the supplier’s
long-term financial stability. They typically seek to qualify
two or more providers for each generation of hard drives, and
once an OEM has chosen its qualified hard drive vendors for a
given product, it generally will purchase hard drives from those
vendors for the life of that product. To achieve success with
OEM qualifications, a hard drive supplier must consistently
offer hard drives featuring leading technology, quality, and
reliability at acceptable capacity per disk. Suppliers must
quickly achieve volume production of each new generation of high
quality and reliable hard drives, requiring access to flexible,
high-capacity, high-quality manufacturing capabilities.
Many of our OEM customers utilize
just-in-time
inventory management processes or supply chain business models
that combine “build-to-order,” in which they do not
build until there is a firm order, and “contract
manufacturing,” in which the OEM contracts assembly work to
a contract manufacturer, such as an ODM, who purchases
components and assembles the computer based on the OEM’s
instructions. For certain OEMs, we maintain a base stock of
finished goods inventory in facilities located near or adjacent
to the OEM’s operations.
For an additional discussion of risks related to our need to
adapt to our customers’ business models and maintain
customer satisfaction, refer to Item 1A of this Annual
Report on
Form 10-K.
This excerpt taken from the WDC 10-K filed Nov 20, 2006. Original
Equipment Manufacturers
Sales to OEMs accounted for 54%, 58% and 51% of our revenue in
2006, 2005 and 2004, respectively. During 2006, our major OEM
customer was Dell. During 2006, 2005 and 2004, sales to Dell
accounted for 12%, 16%, and 14%, respectively, of our revenue.
We believe that our success depends on our ability to maintain
and improve our strong relationships with the leading OEMs.
OEMs evaluate and select their hard drive suppliers based on a
number of factors, including quality and reliability, storage
capacities, performance characteristics, price, service and
support, ease of doing business, and the supplier’s
long-term financial stability. They typically seek to qualify
two or more providers for each generation of hard drives, and
once an OEM has chosen its qualified hard drive vendors for a
given product, it generally will purchase hard drives from those
vendors for the life of that product. To achieve success with
OEM qualifications, a hard drive supplier must consistently
offer hard drives featuring leading technology, quality, and
reliability at acceptable capacity per disk. Suppliers must
Table of Contents
quickly achieve volume production of each new generation of high
quality and reliable hard drives, requiring access to flexible,
high-capacity, high-quality manufacturing capabilities.
Many of our OEM customers utilize
just-in-time
inventory management processes or supply chain business models
that combine
“build-to-order,”
in which the OEM does not build until there is a firm order, and
“contract manufacturing,” in which the OEM contracts
assembly work to a contract manufacturer who purchases
components and assembles the computer based on the OEM’s
instructions. For certain OEMs, we maintain a base stock of
finished goods inventory in facilities located near or adjacent
to the OEM’s operations.
For an additional discussion of risks related to our need to
adapt to our customers’ business models and maintain
customer satisfaction, refer to Item 1A of this Annual
Report on
Form 10-K.
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