This excerpt taken from the AAPL 10-Q filed Aug 8, 2007.
War, terrorism, public health issues, natural disasters and other circumstances could disrupt supply, delivery, or demand of products, which could negatively affect the Companys operations and performance.
War, terrorism, geopolitical uncertainties, public health issues, and other business interruptions, whether in the U.S. or abroad, have caused and could cause damage or disruption to international commerce and the global economy, and thus may have a strong negative impact on the global economy, the Company, and the Companys suppliers, logistics providers or customers. The Companys major business operations are subject to interruption by earthquake, other natural disasters, fire, power shortages, terrorist attacks and other hostile acts, labor disputes, public health issues, and other events beyond its control. The majority of the Companys research and development activities, its corporate headquarters, information technology systems, and other critical business operations, including certain component suppliers and manufacturing vendors, are located near major seismic faults. Because the Company does not carry earthquake insurance for direct quake-related losses and significant recovery time could be required to resume operations, the Companys operating results and financial condition could be materially adversely affected in the event of a major earthquake or other natural or man-made disaster.
Although it is impossible to predict the occurrences or consequences of any such events including when the Company could resume operations, such events could result in a decrease in demand for the Companys products, make it difficult or impossible for the Company to make and deliver products to its customers or to receive components from its suppliers, and create delays and inefficiencies in the Companys supply chain. In addition, should major public health issues, including pandemics, arise, the Company could be negatively affected by more stringent employee travel restrictions, additional limitations in the availability of freight services, governmental actions limiting the movement of products between various regions, delays in production ramps of new products, and disruptions in the operations of the Companys manufacturing vendors and component suppliers. The Companys operating results and financial condition have been, and in the future may be, materially adversely affected by such events.