|
|
 | | | |
- close
- close
- close
- close
WDC » Topics » Shortages of commodity materials, or use by other industries of materials used in the hard drive industry, may increase our cost structure.This excerpt taken from the WDC 10-K filed Aug 28, 2007. Shortages
of commodity materials, or use by other industries of materials
used in the hard drive industry, may increase our cost
structure.
There are costs for certain commodity materials, an increase in
which increases our costs of manufacturing and transporting hard
drives and key components. For example, shortages of materials
such as steel, aluminum and precious metals increase our costs
and may result in lower operating margins if we are unable to
find ways to mitigate these increased costs. The variability in
the cost of oil also affects our costs and may result in lower
operating margins if we are unable to pass increased costs
through to our customers.
Additionally, there are certain limited supply materials, such
as raw materials like nickel and steel as well as metals like
neodymium and ruthenium, which are used in the manufacturing of
hard drive components. If other high volume industry demands for
any of these materials increase, our costs may increase which
could have an adverse affect on our operating margins.
|
| |||||||
