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WDC » Topics » Selling to the retail market is an important part of our business, and if we fail to maintain and grow our market share or gain market acceptance of our branded products, our operating results could suffer.This excerpt taken from the WDC 10-K filed Nov 20, 2006. Selling
to the retail market is an important part of our business, and
if we fail to maintain and grow our market share or gain market
acceptance of our branded products, our operating results could
suffer.
We sell our branded products directly to a select group of major
retailers, for example, computer superstores and CE stores,
and authorize sales through distributors to other retailers and
online resellers. Our current retail customer base is primarily
in the United States, Canada and Europe. We are facing increased
competition from other companies for shelf space at major
retailers, which could result in lower revenues. If we fail to
successfully maintain a customer preference for Western Digital
brand products or fail to successfully expand into multiple
channels, our operating results may be adversely affected. In
certain markets, we are trying to grow market share, and in the
process may face strong competition, which could result in lower
gross margins. We will continue to introduce new products in the
retail market that incorporate our disk drives. There can be no
assurance that these products gain market acceptance, and if
they do not, our operating results could suffer.
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