WDC
#In TAM, <UNK>, overall exabyte growth for the market, we're predicting a 15% growth as a CAGR.
And particularly as it comes to capacity enterprise, we have commented on that earlier, we see a 35% growth in CAGR.
Longer-term, we would expect the TAM to be flat to maybe down low single-digits.
You are referring to PC OEM pricing.
I would just comment that I don't think we have seen anything notable from our perspective.
One comment and not to take offense to the way that the question is phrased, but I don't know if I necessarily like the characterizing it as either offensive or defensive.
This is a strategy that we have thought about quite a bit.
We think it is going to be good for our shareholders, good for our customers and it is going to allow our Company and our business to grow.
So if you want to characterize that as offense then feel free to do so.
Yes.
What percentage we will have to see and we certainly haven't called anything out publicly.
But clearly the mix of our business and the traditional hard drive space is improving.
And as it improves, and as the PC related part becomes a frankly, smaller and smaller part of our business, sooner or later there's going to be an inflection point we'll begin to show improvement in revenues in terms of the overall hard drive market as well as a better margin posture as it relates to that underlying business.
And so the hard drive business remains a great business.
It is just the mix is shifting.
Right.
In a favorable way.
Nothing to talk about at this point.
Obviously, we're going to continue to evaluate and think through our go to market strategy in China.
China as a market, first off, it's a huge market.
It's a growing market.
It's evolving market.
As you see some of the hyperscale guys there grow or telecom companies, et cetera, we're going to have to look at ways that we evolve our go to market capabilities in that market.
Nothing specifically to talk about now.
Relative to what we saw, again, our margin decline on a quarter-on-quarter basis was purely driven in ---+ was mix related and I don't think there's anything unusual from our perspective to call out on the pricing front.
Yes, we're managing our cash flow tightly and we would expect the flow not to have been achieved.
We think we can improve further on these metrics.
Well, the first thing is just to clarify, we haven't called any of that out in terms of what you are talking about.
I'm not going to comment specifically on that.
What we have said is that the lion's share of that $500 million will be the benefit that we will get by being vertically integrated in our SSD business, our existing SSD business.
And there will be some OpEx synergies but we have not quantified that.
By the way, the other thing is, is that we've indicated the $500 million will be 18 months after the close of the transaction which basically means that there will be further synergies beyond that 18-month period that we have yet to quantify publicly.
Well, it's exclusive of the benefits that we will get from the existing SanDisk business.
So it is additive to whatever you might happen to estimate that the existing SanDisk business would be able to generate.
It is additive.
I don't know if I used the word conservative.
But it does include an estimate of some OpEx synergies.
But we haven't quantified specifically what the OpEx versus the vertical integration benefits, we haven't quantified that difference.
But we've also indicated that we would expect that number to increase over time beyond that 18-month period.
Thank you again for joining us today.
In closing, I want to thank all of our employees and suppliers for their commitment and outstanding execution and our customers for their continued business.
Thank you so much.
