Intense Competition Affects Market Share and Pricing: Digi International operates in highly competitive markets, including IoT, M2M, and enterprise connectivity, which could lead to pricing pressure, reduced margins, and difficulty in gaining or maintaining market share.

Rapid Technological Change Requires Continuous Innovation: The technology landscape evolves quickly, and Digi must constantly invest in research and development to update its product offerings and stay competitive. Failure to do so could render its products obsolete.

Supply Chain Disruptions Could Impact Production and Delivery: Digi relies on third-party manufacturers and suppliers for components and finished products. Global supply chain issues, component shortages, or geopolitical events could disrupt production, increase costs, and delay product delivery.