Seagate 2009 Annual Report Download - page 12

Table of Contents
related to commodities, manufacturing and freight. As a result, we may increase our use of ocean shipments to help offset any increase in freight
costs.
Industry Supply Balance
From time to time the industry has experienced periods of imbalance between supply and demand. To the extent that the disk drive industry
builds capacity based on expectations of demand that do not materialize, price erosion may become more pronounced. Conversely, during
periods where demand exceeds supply, price erosion is generally muted. For the first half of fiscal year 2010, our industry experienced unmet
demand due to industry-wide supply constraints, while in the March 2010 quarter supply and demand were relatively balanced. However, in the
June 2010 quarter, industry supply exceeded demand, which we believe reflected a return to seasonal patterns typical of a June quarter.
Products
We offer a broad range of disk drive products for the enterprise, client compute and client non-compute market applications. We offer more
than one product within each product family and differentiate products on the basis of price, performance, form factor, capacity, interface, power
consumption efficiency, security features like full disk encryption and other customer integration requirements. Our industry is characterized by
continuous and significant advances in technology, which contribute to rapid product life cycles. We list our main current product offerings
below.
Enterprise Storage
Cheetah SCSI/SAS/Fibre Channel Family. Our Cheetah 3.5-inch disk drives ship in 10,000 and 15,000 RPM and in storage capacities
ranging from 73GB to 600GB. Commercial uses for Cheetah disk drives include Internet and e-commerce servers, data mining and data
warehousing, mainframes and supercomputers, department/enterprise servers and workstations, transaction processing, professional video and
graphics and medical imaging.
Savvio SCSI/SAS/Fibre Channel Family. We are currently shipping our fourth generation Savvio 2.5-inch enterprise disk drive featuring
increased throughput and improved power consumption, targeted at space optimized enterprise storage systems. Our Savvio disk drives ship in
10,000 and 15,000 RPM and in storage capacities ranging from 73GB to 600GB. We believe that end-user customers are increasingly adopting
the smaller 2.5-inch form factor enterprise class disk drives, which allow the installation of more disk drives per square foot, thus facilitating
faster access to data.
Barracuda ES SATA Family. Our Barracuda ES 3.5-inch disk drives ship in 7,200 RPM and in storage capacities ranging from 250GB to
2TB. The Barracuda ES addresses the emerging market in enterprise storage using nearline storage systems for capacity-intensive enterprise
applications that require space optimization, maximized performance and availability. We have also introduced Barracuda ES drives for the
surveillance market with capacities ranging from 250GB to 1TB.
Constellation ES SATA Family. Our Constellation disk drives ship in both 2.5-inch and 3.5-inch and in storage capacities of up to 500GB
to 2TB, respectively, at 7,200 RPM. The Constellation is designed for reference data environments that require high capacity density, enterprise
reliability, low power consumption and optional security.
Client Compute
Momentus ATA/SATA Family. Our Momentus family of disk drives for mobile computing disk drive products ship in 5,400 and 7,200
RPM and in capacities ranging from 80GB to 640GB. Momentus disk drives are used in notebooks for business, government, education and
consumer applications. Consumer uses for Momentus disk drives also include tablet computers and digital audio applications. Our Momentus
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