106040--11/20/2006--WESTERN_DIGITAL

related topics

{customer, product, revenue}

{product, market, service}

{capital, credit, financial}

{product, liability, claim}

{property, intellectual, protect}

{product, candidate, development}

{stock, price, share}

Our prices and margins are subject to declines due to unpredictable end-user demand and oversupply of hard drives. Changes in product life cycles could adversely affect our financial results. If we fail to maintain effective relationships with our major component suppliers, our supply of critical components may be at risk and our profitability could suffer. We have high-volume hard drive manufacturing facilities in Malaysia and Thailand, which subjects us to the risk of damage or loss of any of these facilities and localized risks to personnel in these locations. Our operating results may be adversely affected if we fail to optimize the overall quality, time-to-market and time-to-volume of new and established products. We are subject to risks related to product defects, which could result in product recalls and could subject us to warranty claims in excess of our warranty provisions or which are greater than anticipated due to the unenforceability of liability limitations. The hard drive industry is highly competitive and can be characterized by significant shifts in market share among the major competitors. If we do not successfully continue to expand into the mobile market, our business may suffer. Manufacturing and marketing our products abroad subjects us to numerous risks. Our reliance on intellectual property and other proprietary information subjects us to the risk that these key ingredients of our business could be copied by competitors. Increases in our customers credit risk could result in credit losses and an increase in our operating costs. The market price of our common stock is volatile.

Full 10-K form ▸

106040--11/20/2006--WESTERN_DIGITAL_CORP