cik
stringclasses
1 value
date
stringlengths
8
8
form
stringclasses
4 values
sentenceCount
int64
0
2.33k
sentence
stringlengths
2
5.25k
filename
stringlengths
40
40
0000320193
20150428
10-Q
541
Accordingly, the Company cannot determine in advance the ultimate effect of new product introductions and transitions.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
542
The Company depends on the performance of distributors, carriers and other resellers.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
543
The Company distributes its products through cellular network carriers, wholesalers, national and regional retailers and value-added resellers, many of whom distribute products from competing manufacturers.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
544
The Company also sells its products and third-party products in most of its major markets directly to education, enterprise and government customers and consumers and small and mid-sized businesses through its online and retail stores.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
545
Carriers providing cellular network service for iPhone typically subsidize users’ purchases of the device.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
546
There is no assurance that such subsidies will be continued at all or in the same amounts upon renewal of the Company’s agreements with these carriers or in agreements the Company enters into with new carriers.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
547
Many resellers have narrow operating margins and have been adversely affected in the past by weak economic conditions.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
548
Some resellers have perceived the expansion of the Company’s direct sales as conflicting with their business interests as distributors and resellers of the Company’s products.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
549
Such a perception could discourage resellers from investing resources in the distribution and sale of the Company’s products or lead them to limit or cease distribution of those products.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
550
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.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
551
These programs could require a substantial investment while providing no assurance of return or incremental revenue.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
552
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.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
553
The Company faces substantial inventory and other asset risk in addition to purchase commitment cancellation risk.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
554
The Company records a write-down for product and component inventories that have become obsolete or exceed anticipated demand or net realizable value and accrues necessary cancellation fee reserves for orders of excess products and components.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
555
The Company also reviews its long-lived assets, including capital assets held at its suppliers’ facilities and inventory prepayments, for impairment whenever events or circumstances indicate the carrying amount of an asset may not be recoverable.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
556
If the Company determines that impairment has occurred, it records a write-down equal to the amount by which the carrying value of the assets exceeds its fair value.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
557
Although the Company believes its provisions related to inventory, capital assets, inventory prepayments and other assets and purchase commitments are currently adequate, no assurance can be given that the Company will not incur additional related charges given the rapid and unpredictable pace of product obsolescence i...
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
558
The Company must order components for its products and build inventory in advance of product announcements and shipments.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
559
Consistent with industry practice, components are normally acquired through a combination of purchase orders, supplier contracts and open orders, in each case based on projected demand.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
560
Where appropriate, the purchases are applied to inventory component prepayments that are outstanding with the respective supplier.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
561
Purchase commitments typically cover forecasted component and manufacturing requirements for periods up to 150 days.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
562
Because the Company’s markets are volatile, competitive and subject to rapid technology and price changes, there is a risk the Company will forecast incorrectly and order or produce excess or insufficient amounts of components or products, or not fully utilize firm purchase commitments.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
563
Future operating results depend upon the Company’s ability to obtain components in sufficient quantities.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
564
Because the Company currently obtains components from single or limited sources, the Company is subject to significant supply and pricing risks.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
565
Many components, including those that are available from multiple sources, are at times subject to industry-wide shortages and significant commodity pricing fluctuations.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
566
While the Company has entered into agreements for the supply of many components, there can be no assurance that the Company will be able to extend or renew these agreements on similar terms, or at all.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
567
A number of suppliers of components may suffer from poor financial conditions, which can lead to business failure for the supplier or consolidation within a particular industry, further limiting the Company’s ability to obtain sufficient quantities of components.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
568
The effects of global or regional economic conditions on the Company’s suppliers, described in “Global and regional economic conditions could materially adversely affect the Company” above, also could affect the Company’s ability to obtain components.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
569
Therefore, the Company remains subject to significant risks of supply shortages and price increases.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
570
The Company and other participants in the markets for mobile communication and media devices and personal computers also compete for various components with other industries that have experienced increased demand for their products.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
571
The Company uses some custom components that are not common to the rest of these industries.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
572
The Company’s new products often utilize custom components available from only one source.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
573
When a component or product uses new technologies, initial capacity constraints may exist until the suppliers’ yields have matured or manufacturing capacity has increased.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
574
Continued availability of these components at acceptable prices, or at all, may be affected for any number of reasons, including if those suppliers decide to concentrate on the production of common components instead of components customized to meet the Company’s requirements.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
575
The supply of components for a new or existing product could be delayed or constrained, or a key manufacturing vendor could delay shipments of completed products to the Company.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
576
The Company depends on component and product manufacturing and logistical services provided by outsourcing partners, many of whom are located outside of the U.S.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
577
Substantially all of the Company’s manufacturing is performed in whole or in part by a few outsourcing partners located primarily in Asia.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
578
The Company has also outsourced much of its transportation and logistics management.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
579
While these arrangements may lower operating costs, they also reduce the Company’s direct control over production and distribution.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
580
It is uncertain what effect such diminished control will have on the quality or quantity of products or services, or the Company’s flexibility to respond to changing conditions.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
581
Although arrangements with these partners may contain provisions for warranty expense reimbursement, the Company may remain responsible to the consumer for warranty service in the event of product defects and could experience an unanticipated product defect or warranty liability.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
582
While the Company relies on its partners to adhere to its supplier code of conduct, material violations of the supplier code of conduct could occur.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
583
The Company relies on sole-sourced outsourcing partners in the U.S., Asia and Europe to supply and manufacture many critical components, and on outsourcing partners primarily located in Asia, for final assembly of substantially all of the Company’s hardware products.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
584
Any failure of these partners to perform may have a negative impact on the Company’s cost or supply of components or finished goods.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
585
In addition, manufacturing or logistics in these locations or transit to final destinations may be disrupted for a variety of reasons including, but not limited to, natural and man-made disasters, information technology system failures, commercial disputes, military actions or economic, business, labor, environmental, ...
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
586
The Company has invested in manufacturing process equipment, much of which is held at certain of its outsourcing partners, and has made prepayments to certain of its suppliers associated with long-term supply agreements.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
587
While these arrangements help ensure the supply of components and finished goods, if these outsourcing partners or suppliers experience severe financial problems or other disruptions in their business, such continued supply could be reduced or terminated and the net realizable value of these assets could be negatively ...
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
588
The Company’s products and services may experience quality problems from time to time that can result in decreased sales and operating margin and harm to the Company’s reputation.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
589
The Company sells complex hardware and software products and services that can contain design and manufacturing defects.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
590
Sophisticated operating system software and applications, such as those sold by the Company, often contain “bugs” that can unexpectedly interfere with the software’s intended operation.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
591
The Company’s online services may from time to time experience outages, service slowdowns, or errors.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
592
Defects may also occur in components and products the Company purchases from third parties.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
593
There can be no assurance the Company will be able to detect and fix all defects in the hardware, software and services it sells.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
594
Failure to do so could result in lost revenue, significant warranty and other expenses and harm to the Company’s reputation.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
595
The Company relies on access to third-party digital content, which may not be available to the Company on commercially reasonable terms or at all.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
596
The Company contracts with numerous third parties to offer their digital content through the iTunes Store.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
597
This includes the right to make available music, movies, TV shows and books currently available through the iTunes Store.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
598
The licensing or other distribution arrangements with these third parties are for relatively short terms and do not guarantee the continuation or renewal of these arrangements on reasonable terms, if at all.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
599
Some third-party content providers and distributors currently or in the future may offer competing products and services, and could take action to make it more difficult or impossible for the Company to license or otherwise distribute their content in the future.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
600
Other content owners, providers or distributors may seek to limit the Company’s access to, or increase the cost of, such content.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
601
The Company may be unable to continue to offer a wide variety of content at reasonable prices with acceptable usage rules, or continue to expand its geographic reach.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
602
Failure to obtain the right to make available third-party digital content, or to make available such content on commercially reasonable terms, could have a material adverse impact on the Company’s financial condition and operating results.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
603
Some third-party digital content providers require the Company to provide digital rights management and other security solutions.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
604
If requirements change, the Company may have to develop or license new technology to provide these solutions.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
605
There is no assurance the Company will be able to develop or license such solutions at a reasonable cost and in a timely manner.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
606
In addition, certain countries have passed or may propose and adopt legislation that would force the Company to license its digital rights management, which could lessen the protection of content and subject it to piracy and also could negatively affect arrangements with the Company’s content providers.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
607
The Company’s future performance depends in part on support from third-party software developers.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
608
The Company believes decisions by customers to purchase its hardware products depend in part on the availability of third-party software applications and services.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
609
There is no assurance that third-party developers will continue to develop and maintain software applications and services for the Company’s products.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
610
If third-party software applications and services cease to be developed and maintained for the Company’s products, customers may choose not to buy the Company’s products.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
611
With respect to its Mac products, the Company believes the availability of third-party software applications and services depends in part on the developers’ perception and analysis of the relative benefits of developing, maintaining and upgrading such software for the Company’s products compared to Windows-based produc...
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
612
This analysis may be based on factors such as the market position of the Company and its products, the anticipated revenue that may be generated, expected future growth of Mac sales and the costs of developing such applications and services.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
613
If the Company’s minority share of the global personal computer market causes developers to question the Mac’s prospects, developers could be less inclined to develop or upgrade software for the Company’s Mac products and more inclined to devote their resources to developing and upgrading software for the larger Window...
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
614
With respect to iOS devices, the Company relies on the continued availability and development of compelling and innovative software applications, which are distributed through a single distribution channel, the App Store.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
615
iOS devices are subject to rapid technological change, and, if third-party developers are unable to or choose not to keep up with this pace of change, third-party applications might not successfully operate and may result in dissatisfied customers.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
616
As with applications for the Company’s Mac products, the availability and development of these applications also depend on developers’ perceptions and analysis of the relative benefits of developing, maintaining or upgrading software for the Company’s iOS devices rather than its competitors’ platforms, such as Android.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
617
If developers focus their efforts on these competing platforms, the availability and quality of applications for the Company’s iOS devices may suffer.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
618
The Company relies on access to third-party intellectual property, which may not be available to the Company on commercially reasonable terms or at all.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
619
Many of the Company’s products include third-party intellectual property, which requires licenses from those third parties.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
620
Based on past experience and industry practice, the Company believes such licenses generally can be obtained on reasonable terms.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
621
There is, however, no assurance that the necessary licenses can be obtained on acceptable terms or at all.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
622
Failure to obtain the right to use third-party intellectual property, or to use such intellectual property on commercially reasonable terms, could preclude the Company from selling certain products or otherwise have a material adverse impact on the Company’s financial condition and operating results.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
623
The Company could be impacted by unfavorable results of legal proceedings, such as being found to have infringed on intellectual property rights.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
624
The Company is subject to various legal proceedings and claims that have not yet been fully resolved and that have arisen in the ordinary course of business, and additional claims may arise in the future.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
625
For example, technology companies, including many of the Company’s competitors, frequently enter into litigation based on allegations of patent infringement or other violations of intellectual property rights.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
626
In addition, patent holding companies seek to monetize patents they have purchased or otherwise obtained.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
627
As the Company has grown, the intellectual property rights claims against it have increased and may continue to increase.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
628
In particular, the Company’s cellular enabled products compete with products from mobile communication and media device companies that hold significant patent portfolios, and the number of patent claims against the Company has significantly increased.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
629
The Company is vigorously defending infringement actions in courts in a number of U.S. jurisdictions and before the U.S. International Trade Commission, as well as internationally in various countries.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
630
The plaintiffs in these actions frequently seek injunctions and substantial damages.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
631
Regardless of the scope or validity of such patents or other intellectual property rights, or the merits of any claims by potential or actual litigants, the Company may have to engage in protracted litigation.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
632
If the Company is found to infringe one or more patents or other intellectual property rights, regardless of whether it can develop non-infringing technology, it may be required to pay substantial damages or royalties to a third-party, or it may be subject to a temporary or permanent injunction prohibiting the Company ...
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
633
In certain cases, the Company may consider the desirability of entering into licensing agreements, although no assurance can be given that such licenses can be obtained on acceptable terms or that litigation will not occur.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
634
These licenses may also significantly increase the Company’s operating expenses.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
635
Regardless of the merit of particular claims, litigation may be expensive, time-consuming, disruptive to the Company’s operations and distracting to management.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
636
In recognition of these considerations, the Company may enter into arrangements to settle litigation.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
637
In management’s opinion, there is not at least a reasonable possibility the Company may have incurred a material loss, or a material loss in excess of a recorded accrual, with respect to loss contingencies, including matters related to infringement of intellectual property rights.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
638
However, the outcome of litigation is inherently uncertain.
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
639
Although management considers the likelihood of such an outcome to be remote, if one or more legal matters were resolved against the Company in a reporting period for amounts in excess of management’s expectations, the Company’s consolidated financial statements for that reporting period could be materially adversely a...
0001193125-15-153166/full-submission.txt
0000320193
20150428
10-Q
640
Further, such an outcome could result in significant compensatory, punitive or trebled monetary damages, disgorgement of revenue or profits, remedial corporate measures or injunctive relief against the Company that could materially adversely affect its financial condition and operating results.
0001193125-15-153166/full-submission.txt