You can also check my articles Apple Swot analysis and Competitors Analysis. All rights reserved BSSL. More than half of its sales have been reported from countries other than America. Almost all studies show that Apple's new products are in high demand from customers. Compliance is mandatory or Apple can face law suit and fines that will lead to bad brand image. As shown able, Apple has implemented different strategies and techniques in line with the changes in the macro environment. The payment of taxes is a noteworthy political factor affecting Apple. It has grown to become a $50 billion empire there. As the competition is extremely high, it should explore the potentials of introducing fundamentally new products and services into the market. A major area of discussion in the PESTEL analysis of Apple is the economic environment. Many smaller brands have breached the intellectual property laws, resulting in legal skirmishes with the company. It is a consequence of these contenders who are giving innovatively propelled items at low costs. Global warming has compelled Apple to change its manufacturing standard drastically. Many consumers prefer Apples screen size over other phones. gold from Peru, copper from Chile, and rare earth materials from Mongolia that go into the production of Apple products. Apple is relying upon huge internet infrastructure that can result in an increment in the cost of electricity in the near future. The total revenue generated out of these products is 72% of the figures for 2013. While is good for them, it is bad news for Apple and other smartphone companies. Apple is also facing furious competition from top tech companies like Samsung and Lenovo. Figure 2 Changes in cost of labour in China, Mexico and Vietnam[13]. Here are a few strategies which Apple follows to maintain the top class customer policy. For Apples success addressing its external environment factors play a vital role. Legal factors are external environment factors that can create threat to Apple. There are many other political factors that can affect Apples performance in many countries. Apples products and services are now available in many countries. It has steadily brought the biggest revolution in the space of personal computers and fashionable digital devices. Balance any chemical equation in minutes just by entering the formula. Companies must therefore devise strategies that can address the new threats and opportunities presented by the digital economy. www.forbes.com/sites/jaysondemers/2014/07/08/heres-the-simple-secret-to-apples-marketing-success/#19108e0d63ab Using the premium pricing strategy Apple is unable to penetrate in the Asian market effectively like Samsung and Huawei. Apple (AAPL) is a multinational worlds leading consumer electronics brand. It should be noted that economic instabilities caused by lockdowns in countries such as the USA, the UK, and many EU nations have affected the sales of luxury tech devices. Since 2016, Apple has been observing a massive growth in annual sales. [1] Hoxie, J. Consumers have created the brand despite its high price. A recently published Apple PEST analysis showed that the best comparison of Apple can be made with BMW as opposed to Ford. This study aims to showcase how both micro and macro level performances have impacted the success and occasional slump in the company. Calculate your semester grades and cumulative GPa with our GPA Calculator. All over the world, Apple has been considered as the symbol of a high-status symbol. However, many US politicians have accused it of doing so at the behest of the Chinese government. There is much domestic legal exhaustion that has impeded the company's growth considerably. However, Apple has announced that its products are going to be carbon neutral by 2030. Learn smart - Learn online. techcrunch.com/2015/08/20/peak-android/ According to the Ohio State University (2022) there are many raw materials e.g. Work provided was well and hopefully Apple Info. It should expand it App Store. Rather they would happily become the second or third choice of the consumers. Highly It can exploit these opportunities for business expansion. The PESTLE analysis of Apple shows that the economic recession in 2013 has struck hard the global sales of Apple Inc, which made it impossible for the company to recover from it still. Disclaimer: The reference papers provided by MyAssignmentHelp.com serve as model papers for students This case study is divided into two key sections. Master of International Business (MIB) University of Wollongong, 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. 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. At the same time, the share of Apple has fallen from 20.2% to 18.9%. Increased labor cost in the Apple manufacturing countries can affect Apple products and profitability. However, the cost of labour is increasingly rising in developing countries in general and in China in particular. The case entails charges of forcible work and working outside working schedules. Thank

Other relevant articles for you are: Stakeholders of Apple (Analysis of Apples stakeholders), Apple (2022) Apple Services now available in more countries around the world, available at: https://www.apple.com/newsroom/2020/04/apple-services-now-available-in-more-countries-around-the-world/ (accessed 09 July 2022), Daily Mail Online (2022) Teenagers are turning to dumb phone models from the 1990s due to a desire to switch off, say experts, available at: https://www.dailymail.co.uk/news/article-10656227/Teenagers-turning-dumb-phone-models-desire-switch-say-experts.html (Accessed 11 July 2022), Gurman, M. (2022) Apple expects supply shortages to slash sales by up to $8 billion, available at: https://www.bloomberg.com/news/articles/2022-04-28/apple-sales-top-estimates-on-strong-iphone-and-services-demand (accessed 11 July 2022), Leswing, K. (2022) How inflation will affect Apple, available at: https://www.cnbc.com/2022/07/01/wealthy-customers-will-help-apple-resist-the-effects-of-inflation.html (accessed 11 July 2022), The Ohio State University (2022) Extraction of raw materials, available at: https://u.osu.edu/iphonecommoditychainproject/extraction-of-raw-materials/ (accessed 10 July 2022). Pandemic across the world has also led to an effect on the political factors. Our writers can provide you professional writing assistance on any subject at any level. Failure to do so can be fatal. Therefore, it is pretty easy to acknowledge the contributors are both external and internal factors. If the tension increases between US-China it can affect brand image of Apple. Technology companies like Apple has a strict telecommunication regulation that is an alarming threat to Apple.

For instance, China is the worlds biggest smartphone market.

For example, bands like Lenovo kept up their place in the PC business while Apple lost it. PESTLE analysis is a framework which is imperative for companies such as Apple, as it helps to understand market dynamics & improve its business continuously. Returning customers an invitation gift is a sign of gratitude. Definition, Types, Innovative Entrepreneurship Definition, Skills, and FAQs, 5 Types of Communication Explained [How to. Moral worries about Apple's assembling in China could restrain its items' allure among socially-cognizant buyers. Just share requirement and get customized Solution. These innovations have brought some serious hope in the company. In 2011 Apple recorded an annual gross sales of $108.6 billion, which rose to $228.57 billion in 2017. Now It Wants a Gold Star? Fortune, Available at: https://fortune.com/2018/01/18/apple-bonuses-money-us-350-billion-taxes-trump, [2] Sullivan, A. you My Assignment Help for providing such services.". This is surely a good thing for Apple. It is hailed as one of the most recognisable and notable brands for digital devices, which sells, designs and develops computer software, consumer side electronic goods and a wide variety of online services. Using reliable plagiarism detection software, Turnitin.com.We only provide customized 100 percent original papers. Get all your documents checked for plagiarism or duplicacy with us. Apples business is subject to the effects of social or socio-cultural trends thus this will cover aspects of such trends. DGCCRF (a French watchdog) has fined Apple 25 million euros (21m, $27m) for deliberately slowing down older iPhone models to push customers to buy its new devices. This has left Android phones and models having a huge swipe over Apple products for a considerable time. Keep in mind the competitors; Apple must exploit such opportunities in the first place. Likewise, it requires the use of hazardous chemicals with no proper recycling system. The US is observing a sustained period of inflation. You may also like reading SWOT analysis of Apple and Marketing mix of Apple.

These papers are intended to be used for research and reference Incidentally, two workers committed suicide, citing the unlawful work schedule of the company. The data are collected from different published resources and several case studies conducted by Apple. Few months back US Congress was asking Apple and Google to protect users privacy. These are extensive features of the Apple SWOT analysis published in the latest business articles. Copyright 2017 - 2025. Check out this Apple SWOT analysis for further studies. But this turned out to be wrong. can These include overall macroeconomic climate in the market, inflation rate and interest rate, as well as, foreign currency exchange rates. Despite having a high margin with the price, it has a market share of 51% in the global smartphone market. Apple is depending on huge internet infrastructure and data center that can lead to increase the electricity cost in the future. This project will further increase regulations and litigation costs. The situation will worsen if China hits back at the US with a hamstring. With its uniqueness and innovative spark, Apple rose to become the most significant digital technology brand globally. Moreover, the report contains analyses of Apple business strategy, leadership, organizational structure and organizational culture. Additionally, activities of trade unions can be mentioned as important political factors for Apple. The amount of political lobbying by the company represents an important element of Apple PESTEL analysis. Instead, it tried to convey how it is better than Microsoft and Android. This article has been researched & authored by the Content & Research Team. According to a SWOT and PESTLE analysis of Apple in recent years, the total sales of iPhones and Ipads are decreasing. Apple also designs proprietary software and iOS operating system to cater all its devices. The United Kingdom is a relatively safe space for common citizens. Many youngsters love tech devices and consider them part and parcel of their lives. A call by Dmitry Gorotsov, a Member of Parliament in Russia to stop lawmakers in the country using iPhones and iPads to protect them from eavesdropping by foreign special services[8] can be referred to as an example where politics interferes with business. The corporation was started by two Computer science college dropouts, Steve Wozniak and Steve Jobs. Rising costs of labour is a significant economic factor that has direct implications on the profitability of the business. PESTLE Analysis of Apple analyses the brand on its business tactics. Apples CEO Tim Cook adopted a currency hedging program in 2014 aimed at easing the negative effects of strengthening USD. Likewise, increased labour cost in the country is likely to increase the production cost of Apples devices in coming years. He has a keen interest in business, hospitality, and tourism management. In this digital age adhering to privacy regulations is very important and thus the government is also putting pressure on the companies like Apple. They know that their consumers know their value. In China, many Apple facilities are shown a signal from the government. There are many competitors who are providing advance technological products of high value at affordable prices which negatively affected brand image and financial performance of Apple. The numbers of Apple lobbyists have been increasing as well and the multinational technology company employed 46 lobbyists in 2019. Feel free to contact our assignment writing services any time via phone, email or live chat. It is also the highest grossing mobile phone company globally, with more than 1,24,000 employees worldwide. Moreover, some members of US Congress demanded Apple to remove controversial Saudi Arabia government Absher app. All these are detailed with descriptions in the PESTLE analysis of Apple published this year. A PESTLE analysis of the Apple company stands for the external macro-environmental factors that shape Apple's policies, procedures, and performance. For example companies like Lenovo maintained its position in the PC market while Apple lost it. The Ireland Government and Apple resolved the back taxes and interest dispute. 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. Students search for an Apple SWOT and PESTLE analysis case study on the internet. However, the highest peak was observed in 2015. This understanding helps to evaluate the criticality of external business factors for any brand. Undoubtedly, Apple is recognised as the most significant technology company in total revenue and assets. The company is predicting a steady growth of its sales with an expanding market in third world countries like India and the African nations. Apple is working on business sustainability program through disposal and recycling nonworking electric devices. All these brands have topped their respective fields in several rankings, according to a recent Etop analysis of Apple. Now! purposes only. Browse analysis of more brands and companies similar to Apple PESTLE Analysis. This has been excessively discussed in the recently published Etop analysis of Apple. The report also comprises discussions of Apple marketing strategy, ecosystem and addresses issues of corporate social responsibility. https://www.apple.com/newsroom/2020/04/apple-services-now-available-in-more-countries-around-the-world/, https://www.dailymail.co.uk/news/article-10656227/Teenagers-turning-dumb-phone-models-desire-switch-say-experts.html, https://www.bloomberg.com/news/articles/2022-04-28/apple-sales-top-estimates-on-strong-iphone-and-services-demand, https://www.cnbc.com/2022/07/01/wealthy-customers-will-help-apple-resist-the-effects-of-inflation.html, https://u.osu.edu/iphonecommoditychainproject/extraction-of-raw-materials/, Marketing mix of Best Buy (4Ps of Best Buy), Stakeholders in the construction industry. Apple generates about 59% cent of its total sales from international markets outside of United States[10]. However while exploring all the economic opportunities it is essential to keep in mind all the competitive forces of the international markets. Investors always prefer Apple for its high return on investment and fast growth. In Europe, the growth before the recession was 31% which declined to 4% in 2012-2013. This leaves the organization profoundly vulnerable against both privacy and suit. However, the mining of these materials destroys animal habitats, and contributes to deforestation. When it comes to strategic management tools, SWOT is the favourite of most analysts. This political issue can affect Chinese consumers demand for iPhone and other Apple product. Joe David has years of teaching experience both in the UK and abroad. Dispute with US Federal Bureau of Investigations, The most significant case that illustrates the potential impact of a political factor relates to Apples battle with US Federal Bureau of Investigations (FBI). A strong US dollar could increase exchange rates, which makes it more costly for Apple to do trade in many of the principal markets like Europe and China. While in the US, the revenue is $68.8 billion. Apple Inc. Report contains a full version of Apple PESTEL analysis. 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.[1]. Thus due to premium pricing policy, it is facing challenges to penetrate in the Asian market which has higher growth rates and great opportunities for a tech brand like Apple. A recent report published by Daily Mail UK reveals that many young adults are turning their backs on high-tech smartphones in favour of old models from the 1990s. www.forbes.com/sites/chuckjones/2015/04/06/apples-worldwide-iphone-market-share-declining-except-in-china/#368e9d923165 Furthermore, there was another incident where 16 other workers of Apple were severely injured by an explosion in the production facilities of Apple. Samsung and Huawei both are targeting low and high-end consumers and ruling the smartphones market. But the company should devise few strategies to address effectively the threats and weaknesses that it recently developed or has chances of developing. After assessing all the factors in SWOT analysis and evaluating the 5c and 5cs analysis reports of Apple, it is seen that Apple has more opportunities and strengths compared to threats and weaknesses. So, if any international country faces a political upheaval, the sales of Apple will be impacted directly. Africa is another country where consumer spending is growing but still many people are unheard of Apple products. In the next fiscal year, the organisation expects a steady growth of 40%. Apple is the preeminent taxpayer in the world and any political issue will influence its overall commercial performance. Since the company's birth, the company has observed a sporadic rise in such a short timeframe. 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. The SWOT analysis is considered the best way to analyse is its ability to enhance the internal condition of the organisation by working on the organisation's strengths, negating the weaknesses, seizing upon the opportunities and cutting out impending threats. In 2011-12 the company witnessed a 50% growth in overall sales in the US which fell to 9% in 2012-13. Hence, it was obvious that the consequence below would be suffered by Apple to the maximum possible extent. 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. In pestle/pestel analysis, economic external factors mean both positive and negative influences that can affect the business environment and performance of a Apple Inc. Economic growth, inflation, deflation, unemployment rate, wage policies are good examples of economic factors. So, without further delay, lets look at the SWOT and PESTLE of Apple Inc. Therefore, many customers are now sticking with old iPhones rather than buying new ones. tech.firstpost.com/news-analysis/apple-admits-some-iphone-5s-devices-have-manufacturing-defects-107447.html Apple products are premium products so the target audience is mainly high-end customers. www.forbes.com/sites/carminegallo/2015/04/10/how-the-apple-store-creates-irresistible-customer-experiences/#135b249f2a0c Technology is the next element to address in the PESTEL analysis of Apple. These are the factors which can create a threat to the company if not followed. These are published in a recent PESTLE analysis of a case study on Apple. The applications are designed with such an intense coding language that very few applications can enter the IOS system. Apple is producing more energy-efficient products like batteries, processors and other types of equipment which emits less heat, thus it has started working for new technological solutions. Apple has a great opportunity to exploit it by offering cloud related devices and apps. Start here. But an individual named David Einhorn, a hedge fund owner, has sued the company to pay $137 billion as forced payments. Activity Based Accounting Assignment Help, Competition and Consumer Law Assignment help, Financial Statement Analysis Assignment Help, Dissertation Research Assistance Services, Mcdonalds Pestle Analysis Marketing Case Study, CDR Sample on Telecommunications Engineers, CDR Sample on Telecommunications Network Engineer, Case Study Apple SWOT & PESTLE/PESTEL Analysis, Finance Statement Analysis Assignment Help, Make personal approaches to the customers. All rights reserved. The PESTLE Analysis highlights the different extrinsic scenarios which impact the business of the brand. While recently, Samsung has sold 74 million handset Iphones recorded a sales of 7735 million. Calculate the number of words and number of pages of all your academic documents. Needless to say that Apple has revolutionised the global technology industry and created an app economy. Given the companys current leadership in the industry, Apple is in a position to enjoy these opportunities. These cases can be interpreted as a clear illustration of potential impact of a political factor on Apple sales in Russia. PESTLE analysis is also referred to as PESTEL analysis. Even today, Apple cannot deal with this problem. 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. www.bloomberg.com/bw/articles/2014-09-04/for-iphone-6-defects-apple-has-failure-analysis-team-ready Given the high price point of Apple products, this would always be an important factor. The matter turned into a major political debate dividing the public into two camps those who support the company and those who oppose it regarding this particular issue.[3]. However, a slowing Chinese economy in the recent years badly impacted on the sales of iPhones. So they don't want to become an easy solution for the buyers' basic electronic necessities. It is a multinational corporation which has managed to create its niche among a broader range of customers. [7]. and are not to be submitted as it is. Apples lobbying efforts are directed at the development of legislations that are favourable for the business on long-term perspective. Specifically, rising cost of labour erodes the profit margin of the worlds largest IT company by revenue.

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. Business sustainability trend offers the opportunity to strengthen the companies corporate image. Apple has a close connection with China and many customers from North America and Europe can feel offended. Another opportunity for Apple is the trend of the integrating different devices. Upload your requirements and see your grades improving. [2] 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. Apple takes a thorough approach to environment responsibility from reporting the entire carbon footprint to finding ways to reduce it. Apple PESTLE Analysis examines the various external factors like political, economic, social, technological (PEST) which impacts its business along with legal & environmental factors. For example the higher growth rates of Asian countries are great opportunities for Apple to increase market share and revenue. In this era, the world can not be imagined without gadgets, mobile devices, smartphones, tablets, thus Apple has recorded its ubiquity all over the international markets. As on August 2018, Apple became the world largest publicly traded corporation by market capitalization and reached to $1 trillion market value. Here is the detailed PESTLE analysis of Apple. There are few socio-cultural trends which are majorly significant for Apple's business. Apple Inc. is one of the largest companies in the world and a household name. In a famous statement, Steve Jobs predicted that people would stop buying big phones in the coming years. It is also interesting to see that though Apple is a tech giant, it has come up with a limited number of new products in recent years (e.g. 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.

It has introduced some top digital applications that revolutionised the music industry, such as iLife, iTunes and iLife. Recent lockdowns in China have also affected Apples performance (Gurman, 2022). However, it is now locked in tech battles with a number of competitors. The government is stable, and the system is business friendly. This shows that Apple may face a wide range of political forces because of its global presence. It has fundamentally changed the idea of communications with its smartphones, computers, and other devices. Also due to pandemic across the world, the economies have suffered and there have been job losses across the world. 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. Privacy issues are another concern for technology users and Governments at the same time. Trade war between USA and China can be mentioned as another global political factor that affects revenues and long-term growth prospects of the iPhone maker. Certainly, the tech industry is brutally competitive. MBA Skool is a Knowledge Resource for Management Students, Aspirants & Professionals. Despite so many opportunities, there is a social threat which Apple faces of opposition against its business operations. Many environmentalists argue that Apple is contributing to the damage of natural environment. Making smartphones is harmful to the environment as it requires dangerous mining practices. To conclude, the above Apple PESTLE Analysis highlights the various elements which impact its business performance. The tech giant hedges portions of its forecasted foreign currency exposure associated with revenue and inventory purchases, typically for up to 12 months. Therefore, after the price, the most ensuing reason is the incompatibility of using a different OS. Apple decided to release a video to commemorate the trip on this occasion. Apple properly disposes of its electronic equipment at the end of its useful life. 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 has based its manufacturing units in China due to cost-efficiency of resources in general and cheaper human resources in particular. Some competitors like Phablets have spread across the market, which displays how it is predicted a wrong outcome in the future. The names and other brand information used in the PESTLE Analysis section are properties of their respective companies. For instance, political crisis and wars in Europe are causing disruptions. For instance, in 2012, the Apple users who bought another iPhone after finishing within 93%. Apple has introduced 'Apple Pay' and entered into a highly monitored financial service sector which could increase the control and government overlooking it faces. [7] Environmental Responsibility Report (2018) Apple Inc. [8] Russia Today (2014) Available at: http://rt.com/politics/210675-russian-parliament-iphone-ban/, [9] The Independent (2014) Available at: http://www.independent.co.uk/news/people/news/russian-politician-says-apple-ceo-tim-cook-should-be-banned-from-country-after-coming-out-as-gay-9829670.html, [14]Neate, R. (2013) David Einhorn Suing Apple Over Shareholder Cash The Guardian, Available at: http://www.theguardian.com/technology/2013/feb/07/david-einhorn-apple-shareholder-cash, Interpretivism (interpretivist) Research Philosophy, https://fortune.com/2018/01/18/apple-bonuses-money-us-350-billion-taxes-trump, https://www.dw.com/en/apple-ireland-tax-avoidance/a-54274213, https://appleinsider.com/articles/20/01/22/apple-spent-74m-on-lobbying-efforts-in-2019-well-below-outlays-from-amazon-and-facebook. The company's total capital became $416.65 in 2016 when it was declared the most valuable brand in the world. Interestingly, in the past one of many Apples investors, hedge fund billionaire David Einhorn has attempted to sue the company to force payment of dividends of USD 137 billion[14] so that negative impact of inflation could be addressed. The multinational technology company uses complex legal means to keep its tax payments as low as possible globally, especially in the US and Ireland. A Strong U.S dollar can negatively affects exchange rate that make it more challenging for Apple to do business operations in countries like China, India, Pakistan.