The company is located in the Silicon Valley in the United States that is currently experiencing economic turmoil. The recession has caused some technology companies to close shop and file for bankruptcy. Unemployment in the region has increased due to the economic downturn.
On the other hand, the high standards of living among Americans have prompted for an increase in labour wages. The problems of the American economy created threats to the sustainability of some companies. However, Apple saw the recession as an opportunity to pool potential talents for their new business ventures.
Laws and regulations related to mobile communications devices in the many jurisdictions in which the Company operates are extensive and subject to change. Such changes, which could include restrictions on production, manufacture, distribution, and use of the device, locking the device to a carrier's network, or mandating the use of the device on more than one carrier's network, could have a material adverseeffect on the Company's financial condition and operating results. Mobile communication devices, such as iPhone, are subject to certification and regulation by governmental and standardization bodies, as well as by cellular network carriers for use on their networks. These certification processes are extensive and time consuming, and could result in additional testing requirements, product modifications or delays in product shipment. (Apple, Inc, 2008)
Information technology system failures, network disruptions and breaches of data security could disrupt the company's operations by causing delays or cancellation of customer, including channel partner. This situation can negatively affect the company's online offerings and services, impeding the manufacture or shipment of products, processing transactions and reporting financial results, resulting in the unintentional disclosure of customer or company information, or damage to the Company's reputation. (Apple, Inc, 2008)
War, terrorism, geopolitical uncertainties, public health issues, and other business interruptions have caused and could cause damage or disruption to international commerce and the global economy, and thus could have a strong negative effect on the Company, its suppliers, logistics providers, manufacturing vendors and customers, including channel partners.
The Company's business operations are subject to interruption by natural disasters, fire, power shortages, terrorist attacks, and other hostile acts, labor disputes, public health issues, and other events beyond its control. Such events could decrease demand for the Company's products, make it difficult or impossible for the Company to make and deliver products to its customers, including channel partners, or to receive components from its suppliers, and create delays and inefficiencies in the Company's supply chain. Should major public health issues, including pandemics, arise, the Company could be negatively affected by more stringent employee travel restrictions, additional limitations in freight services, governmental actions limiting the movement of products between regions, delays in production ramps of new products, and disruptions in the operations of the Company's manufacturing vendors and component suppliers. (Apple, Inc, 2008)
The technology industry is a very attractive industry with a growing market demand internationally.