Recent lockdowns in China have also affected Apples performance (Gurman, 2022). This has fallen to 88% in a year. As the competition is extremely high, it should explore the potentials of introducing fundamentally new products and services into the market. This may impact on their buying decisions. All rights reserved. Apple has now stopped providing charger with newer devices. Quizzes test your expertise in business and Skill tests evaluate your management traits. If the Indian government and Bureaucracy favor the Apple premium brand that can be a great success for the company. Using reliable plagiarism detection software, Turnitin.com.We only provide customized 100 percent original papers. With Brexit and a new government in USA coming into picture, the apple trade can be impacted. Apple is manufacturing most of its products in China where pollution and environmental side effects are great concerns for the company that can affect manufacturing cost and regulations. Apple is also planning to enter in the automobile industry and also working on electric car project code name Titan. Using the premium pricing strategy Apple is unable to penetrate in the Asian market effectively like Samsung and Huawei. This has left Android phones and models having a huge swipe over Apple products for a considerable time. Leswing (2022) reports that Apple faces increasing costs from global logistics and soaring employee salaries. Apple decided to release a video to commemorate the trip on this occasion. In Europe, the growth before the recession was 31% which declined to 4% in 2012-2013. This is why Apple has remained a niche in the market. However, in 2020 the General Court of the European Union ruled that European Commission was wrong, a decision that was welcomed by the Irish government. All these are detailed with descriptions in the PESTLE analysis of Apple published this year. Undoubtedly, Apple is steadily becoming the biggest streaming brand for online digital solutions and videos. However while exploring all the economic opportunities it is essential to keep in mind all the competitive forces of the international markets. Apple's most effective customer strategy is called 'customer centricity. This project will further increase regulations and litigation costs. French antitrust authorities also ordered it to pay a fine of 1.1 billion euro ($1.23 billion) for anti-competitive behaviour. Specifically, the company has disputed with FBI over whether it should be forced to hack an iPhone used by one of the San Bernardino terrorists. Apple product line consist iPhone, Mac, Apple watch, iPad, Music and TV and different accessories. A major political issue is the alarming trade war between the US and China that may impact Apples sales revenue and market share in China and thus it creates a risk for the companys potential growth.
So this is a threat for Apple which results in costly supervisory requirements and more difficulties for those products which deal with private information. The manufacturing cost of Apple will increase as China is changing the greenhouse gas emission standards in the country.
Copyright 2017 - 2025. These include government stability, level of bureaucracy, corruption, freedom of press, home market lobbying groups etc. Needless to say that Apple has revolutionised the global technology industry and created an app economy. Compliance is mandatory or Apple can face law suit and fines that will lead to bad brand image. Apple Inc. Report contains a full version of Apple PESTEL analysis. Hope the case study has touched all points in its analysis. It can exploit these opportunities for business expansion. In addition, its cash flow policy has led it to the top of Forbes magazine in that very year. Now another major opportunity for Apple is the expanding demand for cloud computing, building up an extended cloud framework could expand the benefit of the business in offering cloud-computing services. Therefore, after the price, the most ensuing reason is the incompatibility of using a different OS.
 Changes in taxation policies in general and the stance of governments and government agencies towards the iPhone maker in particular are external political factors that have implications for the business. purposes only. Moral worries about Apple's assembling in China could restrain its items' allure among socially-cognizant buyers. The political factors in the Apple PESTLE Analysis can be explained as follows: Apple is an American company which has generated strong revenue growth and has accumulated a large amount of cash. This is a detailed PESTEL analysis of Apple. Apple Inc. is one of the largest companies in the world and a household name. Changes in interest rates can affect Apple revenues to a significant extent. While is good for them, it is bad news for Apple and other smartphone companies. Global warming has compelled Apple to change its manufacturing standard drastically. China is the major manufacturing country of Apple products as they are produced at a very low cost. The amount of political lobbying by the company represents an important element of Apple PESTEL analysis. There are some economic factors that may turn out to be costly for Apple. There is much domestic legal exhaustion that has impeded the company's growth considerably. In the US, the tech giant holds the majority of its cash offshore so that it can avoid paying corporate income taxes in the US.. It also faces the possibility that many customers may decide not to upgrade their iPhones due to declining purchasing power, and other economic difficulties. Apple takes a thorough approach to environment responsibility from reporting the entire carbon footprint to finding ways to reduce it.
Making smartphones is harmful to the environment as it requires dangerous mining practices. Instead, the company aims at high-end products all the time. These outside strategic determinants symbolize growth potential for the corporation and its competitors, especially large multinational firms like Samsung and Huawei. Moreover, the worlds largest IT company by revenue is affected by the cost of labour and changes in disposable incomes of consumers. Many smaller brands have breached the intellectual property laws, resulting in legal skirmishes with the company. If the US tariffs rapidly increases on Chinese imports into the US then the Apple products can also face heavily taxes from Chinese government.
He has a keen interest in business, hospitality, and tourism management. Nevertheless, this amount is considerably less than lobbying budget of other tech giants, namely Facebook, Amazon and Google, which respectively paid out USD 16.7 million, USD 16.1 million and USD 11.8 million over the same period.. Undoubtedly, Apple is recognised as the most significant technology company in total revenue and assets. Many consumers prefer Apples screen size over other phones. Book Your Assignment at The Lowest Price Specifically, rising cost of labour erodes the profit margin of the worlds largest IT company by revenue. Get all your documents checked for plagiarism or duplicacy with us. This understanding helps to evaluate the criticality of external business factors for any brand. While recently, Samsung has sold 74 million handset Iphones recorded a sales of 7735 million. Received my assignment before my deadline request, paper was well written. Rising costs of labour is a significant economic factor that has direct implications on the profitability of the business. Starting with the rising use of mobile devices which is one of the great opportunity to increase Apple's revenue and sales. Keep in mind the competitors; Apple must exploit such opportunities in the first place. If the tension increases between US-China it can affect brand image of Apple. Another opportunity for Apple is the trend of the integrating different devices. Now the next trend which affects the socio-cultural aspect is progressing necessity on digital systems, this is also an opportunity for Apple which leads to more sales based on the increased demand. Apple Watch and Apple Music). Apple is working on business sustainability program through disposal and recycling nonworking electric devices. Some of the important opportunities for Apple's expansion are: Economic Stability of developed countries, Rapid economic growth of developing countries and the increasing disposable earnings among target consumers. Tim Cook was debarred from entering Russia as he declared himself a homosexual. Market shares of Android have increased from 68.5% to 75.6% in 2016.
This is mostly because they would like to take a break from todays screen-dominated world (Daily Mail, 2022). That's why many manufacturing units of Apple were moved into these countries from developed countries like China and America.
 Hoxie, J.
So, based on the PESTEL analysis reports of Apple it can be said that Apple will continue to be the leader in the electronic industry in years to come.
Technology companies like Apple has a strict telecommunication regulation that is an alarming threat to Apple. The current trends of the increasing popularity of smartphone devices are somewhat a great opportunity for Apple unless they provide easy to use and affordable phones in the market. SWOT analysis and PESTLE analysis. Apple invests largely in product research and development, thus manages to rank on top in the new innovative products ranking.
These are part of MyAssignmenthelp.com's SWOT and PESTLE analysis for Apple. This added pressure when the economic condition was already in the doldrums. A PESTLE analysis of the case study of Apple meticulously showed the new tariff rule imposed by the American administration is creating instability in the business prospect of Apple in China. A recent Apple SWOT & PESTLE analysis published in CEB elaborates that the most impactful way to address our current products is not through complex websites and digital marketing strategy. This new genre of Phablet gained the maximum hype during the last 10 years, which led to Apple rethinking its policies big time. These are the factors which can create a threat to the company if not followed. It is also the highest grossing mobile phone company globally, with more than 1,24,000 employees worldwide. Many PESTLE analyses of Apple showed that successive recessions had made a sharp impact on the economic health of Apple for a significant amount of time. It should expand it App Store. To illustrate this point, it can be mentioned that in June 2017, Apple urged the White House to remain in the Paris climate agreement, to retain American leadership, and to take meaningful action on climate change. It leaves a constant negative impact on the office environment of Apple. Apple properly disposes of its electronic equipment at the end of its useful life. For instance, China is the worlds biggest smartphone market. Upto 80% off on courses for a limited time.
This political issue can affect Chinese consumers demand for iPhone and other Apple product. These cases can be interpreted as a clear illustration of potential impact of a political factor on Apple sales in Russia.
Following are the social factors impacting Apple PESTLE Analysis: Consumer behaviors and expectations are affected by social external factors.