Seagate 2014 Annual Report Download - page 14

TableofContents
Thefollowingtablesummarizesourrevenue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.
Infiscalyears2015,2014and2013,DellInc.accountedforapproximately14%,13%and13%ofconsolidatedrevenue,respectively,whileHewlett-Packard
Companyaccountedforapproximately12%,13%and10%ofconsolidatedrevenue,respectively.See"Item1A.RiskFactors-RisksRelatedtoOurBusiness-We
maybeadverselyaffectedbythelossof,orreduced,delayedorcanceledpurchasesby,oneormoreofourlargercustomers."
Competition
Wecompeteprimarilywithmanufacturersofharddrivesusedintheenterprise,clientcomputeandclientnon-computeapplications,inadditionto
manufacturersofsolid-statedrivesandPCIeacceleratorcards.Themarketsthatwecompeteinarecompetitive.Diskdrivemanufacturerscompeteforalimited
numberofmajordiskdrivecustomersbutalsocompetewithothercompaniesintheelectronicdatastorageindustrythatprovideSSDsandPCIetechnology.Some
oftheprincipalfactorsusedbycustomerstodifferentiateamongelectronicdatastoragesolutionsmanufacturersarestoragecapacity,productperformance,product
qualityandreliability,priceperunitandpricepergigabyte,time-to-marketandtime-to-volumeleadership,storage/retrievalaccesstimes,datatransferrates,form
factor,productwarrantyandsupportcapabilities,supplycontinuityandflexibility,powerconsumption,totalcostofownership,andbrand.Whiledifferentmarkets
andcustomersplacevaryinglevelsofemphasisonthesefactors,webelievethatourproductsarecompetitivewithrespecttoeachofthesefactorsinthemarkets
thatwecurrentlyaddress.
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 FiscalYearsEnded 
 
July3,
2015 
June27,
2014 
June28,
2013 
RevenuesbyChannel(%)       
OEM   71% 68% 68%
Distributors   17% 20% 21%
Retail   12% 12% 11%
RevenuesbyGeography(%)(1)       
Americas   28% 27% 27%
EMEA   17% 19% 19%
AsiaPacific   55% 54% 54%
(1) Revenueisattributedtocountriesbasedontheshippinglocation.