The Company’s success depends largely on the talents and efforts of its team members, the continued service and availability of highly skilled employees, including key personnel, and the Company’s ability to nurture its distinctive and inclusive culture. Much of the Company’s future success depends on the talents and efforts of its team members, the continued availability and
service of key personnel, including its Chief Executive Officer, executive team and other highly skilled employees. Experienced
personnel in the technology industry are in high demand and competition for their talents is intense, especially in Silicon Valley,
where most of the Company’s key personnel are located. In addition to intense competition for talent, workforce dynamics are
constantly evolving. If the Company does not manage changing workforce dynamics effectively, it could materially adversely
affect the Company’s culture, reputation and operational flexibility.
The Company believes that its distinctive and inclusive culture is a significant driver of its success. If the Company is unable to
nurture its culture, it could materially adversely affect the Company’s ability to recruit and retain the highly skilled employees who
are critical to its success, and could otherwise materially adversely affect the Company’s business, reputation, results of
operations and financial condition.
The Company depends on the performance of carriers, wholesalers, retailers and other resellers. The Company distributes its products and certain of its services through cellular network carriers, wholesalers, retailers and
resellers, many of which distribute products and services from competitors. The Company also sells its products and services
and resells third-party products in most of its major markets directly to consumers, small and mid-sized businesses, and
education, enterprise and government customers through its retail and online stores and its direct sales force.
Some carriers providing cellular network service for the Company’s products offer financing, installment payment plans or
subsidies for users’ purchases of the device. There can be no assurance such offers will be continued at all or in the same
amounts.
The Company has invested and will continue to invest in programs to enhance reseller sales, including staffing selected
resellers’ stores with Company employees and contractors, and improving product placement displays. These programs can
require a substantial investment while not assuring return or incremental sales. The financial condition of these resellers could
weaken, these resellers could stop distributing the Company’s products, or uncertainty regarding demand for some or all of the
Company’s products could cause resellers to reduce their ordering and marketing of the Company’s products.
