WDC » Topics » Our prices and margins are subject to declines due to unpredictable end-user demand and oversupply of hard drives.

These excerpts taken from the WDC 10-K filed Aug 20, 2008.
Our prices and margins are subject to declines due to unpredictable end-user demand and oversupply of hard drives.
 
Demand for our hard drives depends on the demand for systems manufactured by our customers and on storage upgrades to existing systems. The demand for systems has been volatile in the past and often has had an exaggerated effect on the demand for hard drives in any given period. As a result, the hard drive market has experienced periods of excess capacity which can lead to liquidation of excess inventories and intense price competition. If intense price competition occurs, we may be forced to lower prices sooner and more than expected, which could result in lower revenue and gross margins.
 
Our
prices and margins are subject to declines due to unpredictable
end-user demand and oversupply of hard drives.



 



Demand for our hard drives depends on the demand for systems
manufactured by our customers and on storage upgrades to
existing systems. The demand for systems has been volatile in
the past and often has had an exaggerated effect on the demand
for hard drives in any given period. As a result, the hard drive
market has experienced periods of excess capacity which can lead
to liquidation of excess inventories and intense price
competition. If intense price competition occurs, we may be
forced to lower prices sooner and more than expected, which
could result in lower revenue and gross margins.


 




This excerpt taken from the WDC 10-K filed Aug 28, 2007.
Our prices and margins are subject to declines due to unpredictable end-user demand and oversupply of hard drives.
 
Demand for our hard drives depends on the demand for systems manufactured by our customers and on storage upgrades to existing systems. The demand for systems has been volatile in the past and often has had an exaggerated effect on the demand for hard drives in any given period. As a result, the hard drive market has experienced periods of excess capacity which can lead to liquidation of excess inventories and intense price competition. If intense price competition occurs, we may be forced to lower prices sooner and more than expected, which could result in lower revenue and gross margins.
 
This excerpt taken from the WDC 10-K filed Nov 20, 2006.
Our prices and margins are subject to declines due to unpredictable end-user demand and oversupply of hard drives.
 
Demand for our hard drives depends on the demand for systems manufactured by our customers and on storage upgrades to existing systems. The demand for systems has been volatile in the past and often has had an exaggerated effect on the demand for hard drives in any given period. As a result, the hard drive market has experienced periods of excess capacity which can lead to liquidation of excess inventories and intense price competition. If intense price competition occurs, we may be forced to lower prices sooner and more than expected, which could result in lower revenue and gross margins.
 
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