Avnet 2003 Annual Report Download - page 20
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Please find page 20 of the 2003 Avnet annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.table below are the major product categories and the Company's approximate sales of each in the past three
Ñscal years.
Years Ended
June 27, June 28, June 29,
2003 2002 2001
(Millions)
Semiconductors ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $4,819.1 $4,430.3 $ 7,105.6
Computer products ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 3,457.8 3,475.3 3,950.8
Connectors ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 376.3 385.0 735.6
Passives, electromechanical and other ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 395.2 629.6 1,022.0
$9,048.4 $8,920.2 $12,814.0
The following are the Company's signiÑcant suppliers by major product category discussed above:
‚Semiconductors: The Company's major suppliers of semiconductors are Analog Devices, InÑneon
Technologies, Intel, Maxim Integrated Products, Motorola, National Semiconductor, ON Semicon-
ductor, Philips Components, STMicroelectronics, Texas Instruments and Xilinx.
‚Computer Products: The Company's major suppliers of computer products are Cisco, EIZO, EMC,
HP, IBM, Intel, Motorola, Oracle NEC, Sharp and VERITAS.
‚Connectors: The Company's major suppliers of connectors are AMP, Amphenol, AVX, ITT Cannon,
Molex, T&B, Tyco and 3M.
‚Passives, Electromechanical and Other: The Company's major suppliers of these products are
Aromat, Artesyn Technologies, AVX, Bourns, ITT/C&K, Kemet, Murata, Pulse and Vishay.
As of June 27, 2003, the Company had over 300 locations worldwide, including a small number in
customer facilities. Many of these locations contain sales, warehousing and administrative functions for
multiple sales and marketing units. Avnet sells to customers in 68 countries.
Competition & Markets
Avnet is currently the world's largest industrial distributor (based on sales) of electronic components and
computer products.
The electronic component and computer product industry continues to be extremely competitive and is
subject to rapid technological advances. The Company's major competitors are Arrow Electronics, Inc.,
Future Electronics, Memec PLC and Pioneer-Standard Electronics, Inc. There are also certain smaller,
specialized competitors who focus upon one market or product or a particular sector. As a result of these
factors, Avnet must remain competitive in its pricing of goods and services.
Another key competitive factor in the electronic component and computer product distribution industry
as a whole is the need to carry a suÇcient amount of inventory to meet rapid delivery requirements of
customers. However, to minimize its exposure related to valuation of inventory on hand, the majority of the
Company's product lines are purchased pursuant to non-exclusive distributor agreements. These agreements
typically provide certain protections to the Company for product obsolescence and price erosion in the form of
rights of return and price protection. Furthermore, these agreements are generally cancelable upon 30 to
180 days notice and, in most cases, provide for inventory return privileges upon cancellation. In addition, the
Company enhances its competitive position by oÅering a variety of value-added services which entail the
performance of services and/or processes tailored to individual customer speciÑcations and business needs
such as point of use replenishment, testing, assembly, supply chain management and materials management.
A key strength of the Company is the breadth and quality of the suppliers whose products it distributes.
Because of the number of Avnet's suppliers, which totals over 250, many customers can make all of their
required purchases with Avnet, rather than purchasing from several diÅerent vendors.
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