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Dell
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BROADCOM
Broadcom's customers are Original Equipment Manufacturers (OEMs) of technology products. Broadcom supplies these customers with semiconductors that are then used in the development and assembly of technology products such as broadband modems, computers, iPods, wireless routers, cell phones, and other wired and wireless communications devices. Broadcom's top twenty customers of 2006 by sales include Apple (AAPL), Hewlett-Packard Company (HPQ), Motorola (MOT), Cisco Systems (CSCO), International Business Machines (IBM), Dell (DELL), Nintendo (NTDOY), Samsung, and Pioneer Companies (PONR). Of these, the top five customers accounted for 46.5% of revenue in 2006. This puts Broadcom at high risk were it to lose one of its top customers to a competitor. Broadcom has realized the importance of minimizing customer concentration, and although dependence on the top five customers is still relatively high, it has fallen considerably from 2004's 53%.
Source: wikinvest.com (built 654 days ago)
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