Item 1A. Risk Factors

The Companys business, reputation, results of operations, financial condition and stock price can be affected by a number of factors, whether currently known or unknown, including those described in Part I, Item 1A of the 20234 Form 10-K and Part II, Item 1A of under the heading Risk Factors. When any one or more of these risks materialize from time to time, the Companys business, reputation, results of operations, financial condition and stock price can be materially and adversely affected. Except as set forth below, there have been no material changes to the Companys risk factors since the 2024 Form 10-Q for the quarter ended March 30, 2024 (the secoK.

The Company is subject to complex and changing laws and regulations worldwide, which exposes the Company to potential liabilities, increased costs and other adverse effects on the Companys business.

The Companys global operations are subject to complex and changing laws and regulations on subjects including antitrust; privacy, data security and data localization; consumer protection; advertising, sales, billing and e-commerce; financial services and technology; product liability; intellectual property ownership and infringement; digital platforms; machine learning and artificial intelligence; internet, telecommunications and mobile communications; media, television, film and digital content; availability of third-party software applications and services; labor and quarter 2024 Form 10-Q), in each case under temployment; anticorruption; import, export and trade; foreign exchange controls and cash repatriation restrictions; antimoney laundering; foreign ownership and investment; national security; tax; and environmental, health and safety, including electronic waste, recycling, product design and climate change.

Compliance with these laws and regulations is onerous and expensive. New and changing laws, regulations, executive orders, directives, and enforcement priorities can adversely affect the headiCompanys business by increasing the Companys costs, limiting Risk Factors. When the Companys ability to offer a product, service or feature to customers, imposing changes to the design of the Company one or more of these ris products and services, impacting customer demand for the Companys products and services, and requiring changes to the Companys business or supply chain. New and changing laws, regulations, executive orders, directives, and enforcement priorities can also create uncertainty about how such laws and regulations will be interpreted and applied.

Risks materiaand costs related to new and changing laws, regulations, executive orders, directives, and enforcement priorities may increase as the Companys products and services are introduced into specialize from time to time, the d applications, including health and financial services, or as the Company expands the use of technologies, such as machine learning and artificial intelligence features, and must navigate new legal, regulatory and ethical considerations relating to such technologies. The Company has implemented policies and procedures designed to ensure compliance with applicable laws and regulations, but there can be no assurance the Companys employees, contractors or agents will not violate such laws and regulations or the Companys policies and procedures. If the Company is found to have violated laws and regulations, it could materially adversely affect the Companys business, reputation, results of operations,  and financial condition and stock price can .

Regulatory changes and other actions that materially adversely affect the Companys business may be announced with little or no advance notice and the Company may not be mable to effectively mitigaterially and adversely a all adverse impacts from such measures. For example, the Company is subject to changing regulations relating to the export and import of its products. Although the Company has programs, policies and procedures in place that are designed to satisfy regulatory requirements, there can be no assurance that such policies and procedures will be effected. Except for tive in preventing a violation or a claim of a violation. As a result, the Companys products could be banned, delayed or prohibited from importation, which could materially adversely affect the risk factor disclosed in Part II, Item 1A of Companys business, reputation, results of operations and financial condition.

The technology industry, including, in some instances, the Company, is subject to intense media, political and regulatory scrutiny, which exposes the Company to increasing regulation, government investigations, legal actions and penalties.

From time to time, the Company has made changes to its App Store, including actions taken in response to litigation, competition, market conditions and legal and regulatory requirements. The Company expects to make further business changes in the second quarter 2024 Form 10-Qfuture. For example, which is hereby incorporated by reference inin the U.S. the Company has implemented changes to how developers communicate with consumers within apps on the U.S. storefront of the iOS and iPadOS App Store regarding alternative purchasing mechanisms.

The Company has also implemented changes to iOS, iPadOS, the App Store and Safari in the EU as it seeks to comply with the DMA, including new business terms and alternative fee structures for iOS and iPadOS apps, alternative methods of distribution for iOS and iPadOS apps, alternative payment processing for apps across the Companys operating systems, and additional tools and application programming interfaces (APIs) for developers. The Company has also continued to this Part II, Item 1A of this make changes to its compliance plan in response to feedback and engagement with the Commission. Although the Companys compliance plan is intended to address the DMAs obligations, it has been challenged by the Commission and may be challenged further by private litigants. The DMA provides for significant fines and penalties for noncompliance, and other jurisdictions may seek to require the Company to make changes to its business. While the changes introduced by the Company in the EU are intended to reduce new privacy and security risks that the DMA poses to EU users, many risks will remain.

Apple Inc. | Q1 2025 Form 10-Q | 19

The Company is also currently subject to antitrust investigations and litigation in various jurisdictions around the world, there which can result in legal proceedings and claims against the Company that could, individually or in the aggregate, have been no material changes toa materially adverse impact on the Companys business, results of operations and financial condition. For example, the Company is subject to civil antitrust lawsuits in the U.S. alleging monopolization or attempted monopolization in the markets for performance smartphones and smartphones generally in violation of U.S. antitrust laws. In addition, the Companys risk factors since t is the subject of investigations in Europe and other jurisdictions relating to App Store terms and conditions. If such investigations or litigation are resolved against the Company, the Company can be exposed to significant fines and may be required to make further changes to its business practices, all of which could materially adversely affect the 2023 Form 10-K.

Apple Inc. | Q3 Companys business, reputation, results of operations and financial condition.

Further, the Company has commercial relationships with other companies in the technology industry that are or may become subject to investigations and litigation that, if resolved against those other companies, could materially adversely affect the Companys commercial relationships with those business partners and materially adversely affect the Companys business, results of operations and financial condition. For example, the Company earns revenue from licensing arrangements with Google LLC (Google) and other companies to offer their search services on the Companys platforms and applications, and certain of these arrangements are currently subject to government investigations and legal proceedings. On August 5, 2024 Form 10-Q | 19

, Google was found to have violated U.S. antitrust laws. In connection with this finding, the DOJ has proposed remedies, which include changes to Googles products, services and business models. The proposed changes vary in scope and severity and range from imposing significant restrictions on Googles licensing agreements to prohibiting Google from offering the Company commercial terms for search distribution for up to 10 years. If implemented, such remedies could materially adversely affect the Companys ability to earn revenue from such licensing arrangements.

There can be no assurance the Companys business, results of operations and financial condition will not be materially adversely affected, individually or in the aggregate, by the outcomes of such investigations, litigation or changes to laws and regulations in the future. Changes to the Companys business practices to comply with new laws and regulations or in connection with other legal proceedings can negatively impact the reputation of the Companys products for privacy and security and otherwise adversely affect the experience for users of the Companys products and services, and result in harm to the Companys reputation, loss of competitive advantage, poor market acceptance, reduced demand for products and services, lost sales, and lower profit margins.