SanDisk 2012 Annual Report Download - page 148

in average capacity of 47%. The decrease in product revenues in fiscal year 2012, over fiscal year 2011, was due
primarily to lower OEM sales of cards and embedded products for mobile devices, and lower sales of wafers and
components, partially offset by increased sales of client and enterprise SSD products. Our sales of mobile cards
were lower due to a reduced rate of card bundling and bundling of lower capacity cards by mobile OEM
customers, and in the first half of fiscal year 2012, our sales of mobile embedded products were lower as our next
generation of those products were in various stages of development and qualification. Our retail product revenue
remained relatively flat compared to the prior year.
The increase in our fiscal year 2011 product revenues, compared to fiscal year 2010, reflected an 80%
increase in the number of gigabytes sold, partially offset by a (34%) reduction in average selling price per
gigabyte. The increase in number of gigabytes sold was the result of a 31% increase in memory units sold with an
increase in average capacity of 38%. The increase in product revenues in fiscal year 2011, over fiscal year 2010,
was due primarily to higher OEM sales of memory products for mobile devices, such as phones and tablets, and
for gaming devices. Our retail product revenue growth was driven primarily by increased sales of cards for
mobile phones and USB drives.
Geographical Product Revenues.
FY 2012 FY 2011 FY 2010
Revenue
Percent
of Total Revenue
Percent
of Total Revenue
Percent
of Total
(In millions, except percentages)
United States .................... $ 663.7 14.2% $ 792.7 15.0% $ 771.0 17.3%
Asia-Pacific ..................... 3,144.3 67.2% 3,583.0 67.8% 2,825.1 63.3%
Europe, Middle East and Africa ..... 642.5 13.7% 688.5 13.0% 714.3 16.0%
Other foreign countries ............ 228.0 4.9% 223.4 4.2% 152.5 3.4%
Product revenues ............. $ 4,678.5 100.0% $ 5,287.6 100.0% $ 4,462.9 100.0%
Product revenues in Asia-Pacific decreased in fiscal year 2012, on a year-over-year basis, due primarily to
decreased OEM sales of cards and embedded products for mobile devices, partially offset by higher retail sales of
mobile cards, USB drives and SSDs. The decrease in product revenues for the U.S. in fiscal year 2012, compared
to fiscal year 2011, was due primarily to lower retail sales of cards for mobile and imaging devices, and lower
OEM sales of cards and embedded products for mobile devices, partially offset by increased sales of client and
enterprise SSD products. Product revenues in Europe, Middle East and Africa, or EMEA, decreased slightly in
fiscal year 2012, compared to fiscal year 2011, due primarily to decreased OEM sales of cards and embedded
products for mobile devices and lower retail sales of cards for the imaging market, partially offset by increased
sales of retail mobile cards, USB drives and client SSD products.
Product revenues in Asia-Pacific increased in fiscal year 2011, on a year-over-year basis, due primarily to
increased sales of embedded products to our OEM customers. The slight increase in product revenues for the
U.S. in fiscal year 2011, compared to fiscal year 2010, was due primarily to growth in retail sales of cards for the
mobile market and USB flash drives. Product revenues in EMEA decreased slightly in fiscal year 2011,
compared to fiscal year 2010, due primarily to a decrease in sales to certain mobile OEM customers.
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