The Company’s products and services may be affected from time to time by design and manufacturing defects that could materially adversely affect the Company’s business and result in harm to the Company’s reputation. The Company offers complex hardware and software products and services that can be affected by design and manufacturing
defects. Sophisticated operating system software and applications, such as those offered by the Company, often have issues
that can unexpectedly interfere with the intended operation of hardware or software products. Defects can also exist in
components and products the Company purchases from third parties. Component defects could make the Company’s products
unsafe and create a risk of environmental or property damage and personal injury. These risks may increase as the Company’s
products are introduced into specialized applications, including health. In addition, the Company’s service offerings can have
quality issues and from time to time experience outages, service slowdowns or errors. As a result, the Company’s services from
time to time have not performed as anticipated and may not meet customer expectations. There can be no assurance the
Company will be able to detect and fix all issues and defects in the hardware, software and services it offers. Failure to do so can
result in widespread technical and performance issues affecting the Company’s products and services. In addition, the Company
can be exposed to product liability claims, recalls, product replacements or modifications, write-offs of inventory, property, plant
and equipment, and/or intangible assets, and significant warranty and other expenses, including litigation costs and regulatory
fines. Quality problems can also adversely affect the experience for users of the Company’s products and services, and result in
harm to the Company’s reputation, loss of competitive advantage, poor market acceptance, reduced demand for products and
services, delay in new product and service introductions and lost sales.
