Seagate 2012 Annual Report Download - page 13

Table of Contents
streaming in always-on applications with capacities up to 4TB to support leading-edge digital entertainment.
SV35: Surveillance HDDs. Our surveillance drives are built to support the high-write workload of an always-on, always-recording video
surveillance system. This surveillance optimized drive was built to support the growing needs of the surveillance market with support for
multiple HD streams and capacities up to 3TB.
We ship external backup storage solutions under our Backup Plus and Expansion product lines, as well as under the Samsung and LaCie
brand names. These product lines utilize our 3.5-inch and 2.5-inch disk drives, which are available in capacities up to 4TB and 1TB,
respectively. In addition, we ship the Wireless Plus wireless drive for use with secondary mobile devices utilizing a 2.5-inch 1TB drive. We also
ship network attached storage (NAS) solutions under our Central and Business Storage product lines. These product lines utilize our 3.5-inch
disk drives; our Central products are available in capacities up to 4TB, and our Business Storage products are available in capacities up to 16TB.
Customers
We sell our products to major OEMs, distributors and retailers.
The following table summarizes our revenue
(1)
by channel and by geography:
OEM customers typically enter into master purchase agreements with us. These agreements provide for pricing, volume discounts, order
lead times, product support obligations and other terms and conditions including sales programs offered to promote selected products. Deliveries
are scheduled only after receipt of purchase orders. In addition, with limited lead-time, customers may defer most purchase orders without
significant penalty. Anticipated orders from many of our customers have in the past failed to materialize or OEM delivery schedules have been
deferred or altered as a result of changes in their business needs.
Our distributors generally enter into non-exclusive agreements for the resale of our products. They typically furnish us with a non-binding
indication of their near-term requirements and product deliveries are generally scheduled accordingly. The agreements and related sales
programs typically provide the distributors with limited right of return and price protection rights. In addition, we offer sales programs to
distributors on a quarterly and periodic basis to promote the sale of selected products in the sales channel.
Our retail channel consists of our branded storage products sold to retailers either by us directly or by our distributors. Retail sales made by
us or our distributors typically require greater marketing support, sales incentives and price protection periods.
10
Fiscal Years Ended
June 28,
2013
June 29,
2012
July 1,
2011
Revenues by Channel (%)
OEM
68
%
72
%
69
%
Distributors
21
%
21
%
22
%
Retail
11
%
7
%
9
%
Revenues by Geography (%)
Americas
27
%
26
%
29
%
EMEA
19
%
19
%
20
%
Asia Pacific
54
%
55
%
51
%
(1)
Revenue is attributed to countries based on the shipping location.