United states securities and exchange commission

The Company’s business can be impacted by political events, trade and other international disputes, war, terrorism, 
natural disasters, public health issues, industrial accidents and other business interruptions.
Political events, trade and other international disputes, war, terrorism, natural disasters, public health issues, industrial accidents 
and other business interruptions can harm or disrupt international commerce and the global economy, and could have a material 
adverse effect on the Company and its customers, suppliers, contract manufacturers, logistics providers, distributors, cellular 
network carriers and other channel partners.
The Company has a large, global business with sales outside the U.S. representing a majority of the Company’s total net sales, 
and the Company believes that it generally benefits from growth in international trade. Substantially all of the Company’s 
manufacturing is performed in whole or in part by outsourcing partners located primarily in Asia, including China mainland, India, 
Japan, South Korea, Taiwan and Vietnam. Trade policies and disputes and other international conflicts can result in tariffs, 
sanctions and other measures that restrict international trade, and can materially adversely affect the Company’s business, 
particularly if these measures occur in regions where the Company derives a significant portion of its revenues and/or has 
significant supply chain operations. For example, tensions between the U.S. and China have led to a series of tariffs being 
imposed by the U.S. on imports from China mainland, as well as other business restrictions. Tariffs increase the cost of the 
Company’s products and the components and raw materials that go into making them. These increased costs can adversely 
impact the gross margin that the Company earns on its products. Tariffs can also make the Company’s products more expensive 
for customers, which could make the Company’s products less competitive and reduce consumer demand. Countries may also 
adopt other measures, such as controls on imports or exports of goods, technology or data, that could adversely impact the 
Company’s operations and supply chain and limit the Company’s ability to offer its products and services as designed. These 
measures can require the Company to take various actions, including changing suppliers, restructuring business relationships, 
and ceasing to offer third-party applications on its platforms. Changing the Company’s operations in accordance with new or 
changed trade restrictions can be expensive, time-consuming and disruptive to the Company’s operations. Such restrictions can 
be announced with little or no advance notice and the Company may not be able to effectively mitigate all adverse impacts from 
such measures. If disputes and conflicts further escalate in the future, actions by governments in response could be significantly 
more severe and restrictive and could materially adversely affect the Company’s business. Political uncertainty surrounding trade 
and other international disputes could also have a negative effect on consumer confidence and spending, which could adversely 
affect the Company’s business.
Many of the Company’s operations and facilities, as well as critical business operations of the Company’s suppliers and contract 
manufacturers, are in locations that are prone to earthquakes and other natural disasters. In addition, such operations and 
facilities are subject to the risk of interruption by fire, power shortages, nuclear power plant accidents and other industrial 
accidents, terrorist attacks and other hostile acts, ransomware and other cybersecurity attacks, labor disputes, public health 
issues, including pandemics such as the COVID-19 pandemic, and other events beyond the Company’s control. Global climate 
change is resulting in certain types of natural disasters occurring more frequently or with more intense effects. Such events can 
make it difficult or impossible for the Company to manufacture and deliver products to its customers, create delays and 
inefficiencies in the Company’s supply and manufacturing chain, and result in slowdowns and outages to the Company’s service 
offerings. Following an interruption to its business, the Company can require substantial recovery time, experience significant 
expenditures to resume operations, and lose significant sales. Because the Company relies on single or limited sources for the 
supply and manufacture of many critical components, a business interruption affecting such sources would exacerbate any 
negative consequences to the Company.
Apple Inc. | 2022 Form 10-K | 6

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The Company’s operations are also subject to the risks of industrial accidents at its suppliers and contract manufacturers. While 
the Company’s suppliers are required to maintain safe working environments and operations, an industrial accident could occur 
and could result in serious injuries or loss of life, disruption to the Company’s business, and harm to the Company’s reputation. 
Major public health issues, including pandemics such as the COVID-19 pandemic, have adversely affected, and could in the 
future materially adversely affect, the Company due to their impact on the global economy and demand for consumer products; 
the imposition of protective public safety measures, such as stringent employee travel restrictions and limitations on freight 
services and the movement of products between regions; and disruptions in the Company’s supply chain and sales and 
distribution channels, resulting in interruptions of the supply of current products and delays in production ramps of new products.
While the Company maintains insurance coverage for certain types of losses, such insurance coverage may be insufficient to 
cover all losses that may arise.