This could lead to increased prices for Apple products. Apple has also lost market share in China, falling from top spot to 4th as it battles low cost Chinese rivals. In this SWOT analysis tutorial, we will conduct Apple SWOT analysis. Please consider supporting us by disabling your ad blocker. The change in government can bring new business rules which may affect the iPhone 5 sales and revenues. (5) Both the companies are suing each other in various regions and there has been fierce legal battles. April 23, 2019. Apple is intensely subject to bring down cost producing in China. However, there are ways to improve your employability and stay competitive. To be the Best Source of Business Strategy & Analysis. The company has been changing the lives of people ever since they have started their journey. Now let us get into the PESTLE Analysis of Apple in the following sections. It is the first time Apple is not in the top 2 global smartphone firms since 2011. The cost of finding alternatives to Chinese manufacturing could be high for Apple. But there are some hurdles in front of the tech giant in the upcoming years. Apple Inc. heavily relies on Chinese manufacture industries. If you are studying management, you are likely to take up the position of managers in an organisation. Despite being a bit rusty or ‘unprofessional’ in some encounters, Apple products has come up with some ground breaking technological breakthroughs which are worth appreciating. Apple PESTEL Analysis. The company which started in a garage is now one of the biggest tech giants of the planet! Apple is the highest US technological company, which has earned huge amount of revenue and it has the higher corporate taxation in US to make the political issue of inequality in income. Apple Inc – PESTLE Analysis 9 P E S T L E 10. Political Factors • It is reported that more than a half of sales of their products come from countries other than America. But the African consumers are not well aware of Apple Inc. and their Apple Products. The Strategy Watch is a fast-growing multi-author blog on Strategic management, Business Planning, Investment, & Analysis. Apple is a renowned brand in the world. Climate change created by global warming could disrupt transoceanic shipping and Apple’s supply chain. Governance, types of market, tariffs, and leadership, the entire thing has a lot to do with the market of a particular brand. Despite being a bit rusty or ‘unprofessional’ in some encounters, Apple products has come up with some ground breaking technological breakthroughs which are worth appreciating. Apple’s dependence on Chinese manufacturing and markets makes it vulnerable to political unrest in that country. During the recent years, it tried to expand its business by adding new products and … After the accusation, it went down to the trails and Apple Inc. had to give away 500 million US Dollars to the customers as a compensation. [1] https://ycharts.com/companies/AAPL/key_stats, [2] http://www.csmonitor.com/Technology/2015/0923/Why-Apple-Pay-and-other-mobile-wallet-services-could-be-regulated-like-banks, [3] http://money.cnn.com/2015/09/30/technology/apple-car-clues/, Image “Apple Store Bahnhofstrasse Zürich” by Niels Epting is licensed under CC BY-ND 2.0. So it will be a viable threat for the tech giant as well. Apple SWOT and PESTLE analysis has been conducted by Sushree Lasyamayee and reviewed by senior analysts from Barakaat Consulting. Apple has recently entered the highly regulated financial services sector via Apple Pay. Necessary cookies are absolutely essential for the website to function properly. Based on this PESTEL/PESTLE analysis, it is expected that Apple will remain in its leadership position for at lea… These cookies do not store any personal information. Environmental factors are a huge hiccup for any consumer electronic brand in the planet. PESTEL analysis of Apple Inc. Apple is one of the leading brands in the mobile phone industry. This website uses cookies to improve your experience while you navigate through the website. It offers people professionals insight into the external factors impacting their organisation. Concern about energy use and other side effects from data centers could lead to increased regulation and costs. Consumers in those markets and younger people in Apple’s established markets, such as the United States, lack the strong emotional attachment to Apple products that drive sales. It is mandatory to procure user consent prior to running these cookies on your website. Social. But there are some region where Apple products are still unrecognized. PESTLEanalysis.com is an educational website collecting all the information and resources related not only to PESTLE but also SWOT, STEEPLE and other analysis that will come useful to business owners, entrepreneur, and students alike. Apple has always surrounded by its political pressure even when we talk of the USA market or its entry in the European Union. Apple Inc. (NASDAQ: AAPL) is one of the world’s most visible and recognizable consumer electronics brands. Apple also reported sales of $50.77 billion for the second quarter of 2015 and estimated sales of $233.02 billion for the current fiscal year. The organization gives quality electronic contraptions like PCs, smartphones, tablets, music players, and even Televisions which are exceptionally popular and amazingly favored by the customers. PESTEL or PESTLE analysis, also known as PEST analysis, is a tool for business analysis of political, economic, social, and technological factors. It is one of the most influential consumer electronics brand in the market. On the other side of the world, Apple Inc. has entered the markets of India, Bangladesh and other developing countries. It had $34.7 billion in the put money on June 30, 2015. Other companies creating rivalries which is also making the market capture of Apple Inc. harder day by day. Apple is headquartered in Cupertino, California and was founded by Steve Jobs. The growing nationalism and anti-Americanism can result in the red… Which will lead to lesser consumption of Apple Products. There have been additionally been calls to limit … It was also able to achieve a profit margin of 21.52% for the second quarter of 2015. By John Dudovskiy. But due to the taxes on consumer electronics, Apple products are a bit pricy. Apple is the largest tech company and the eighth biggest company globally. In this section, we will share a fifth of the five pestle analysis examples. By offering financial services, Apple could face increased levels of litigation. Basically, I use PESTEL when I need to predict how society and environment will influence my app launch on the market. Apple Case Study - SWOT & PESTLE Analysis A Brief Profile of Apple Inc Apple is regarded as the world’s most recognized and remarkable brand in the electronics field. The cost of the alternatives to the manufacturing products in China can make it high for Apple. Apple PESTLE Analysis examines the various external factors like political, economic, social, technological (PEST) which impacts its business along with legal & environmental factors. Apple Inc. will have to be more careful in different regions. However, the firm must develop suitable strategies to effectively address the threats identified in the legal dimension of its remote/macro-environment. Apple has a very unique business model in which it writes and designs proprietary software and offers its own operating system for all of its devices. Apple’s close association with China could become a political issue in countries like the United States and Japan if China were to be perceived as a threat. Apple Inc. has been facing a vast array of legal issues over the years in various regions. This means that many of Apple’s signature services and products are no longer unique. Apple is one of the leading and most visible companies which have most recognizable consumer brands. (1)  This gross regional revenue has become a prominent political issue considering the fact that Apple Inc. plays a huge role in the country’s economy. We'll assume you're ok with this, but you can opt-out if you wish. This could increase the level of regulation and government oversight it faces. PESTLE analysis is an acronym for Political, Economic, Social, Technological, and Legal. It reported revenues of $224.34 billion on June 30, 2015. The company operates globally which makes it vulnerable to many legal factors and litigation. But opting out of some of these cookies may have an effect on your browsing experience. Apple’s close association with China could offend some potential customers in other regions, such as North America and Europe, particularly if tensions with China rise. Another notable instance is the antitrust action is pulled up against Apple Inc. for being bias in the App store and conducting monopolistic practices. Thus Apple TV has a limited market capture. Ethical concerns about Apple’s manufacturing in China could limit its products’ appeal among socially-conscious consumers. Apple is a very rumored organization and brand in the worldwide market. APPLE INC. SWOT AND PESTLE ANALYSIS NINAD G. JAPE 2. Apple PESTLE analysis 2015; When you seek Apple PESTLE analysis help services from us, our writer will make it a point to include certain significant facts like 2015 was the most successful year for Apple. Using a pestle analysis for Apple, this report examines how various external factors have impacted the growth potential and performance of Apple. So find out which factors affect the world most viable company. Despite its uniqueness, Apple’s business model has been very successful. Apple Inc. can use its strengths to efficiently exploit the opportunities that it has such as expanding its distribution network. Table 1: Information of Apple Inc. Swot and Pestle Analysis of Apple We deliver the highest quality of papers. Music players, TV sets as well smartphones. The main reason behind the slow growth in market share is due mainly to the high price of th… Perhaps the most controversial legal conspiracy was that the accusation of slowing down the performance of the older models and products deliberately to increase the sales of the newer products. Yes, we are talking about none other than, Technological factors Affecting Apple Inc, https://www.statista.com/topics/847/apple/, https://www.statista.com/statistics/233147/total-consumer-spending-in-south-africa/, https://www.androidauthority.com/how-to-use-android-pay-678739/, https://techcrunch.com/2020/03/02/apple-agrees-to-settlement-of-up-to-500-million-from-lawsuit-alleging-it-throttled-older-phones/, https://www.digitaltrends.com/business/apple-vs-qualcomm-news/, https://realmoney.thestreet.com/investing/stocks/apple-shareholders-have-larger-legal-issues-than-qualcomm-to-consider-14805668, https://chinapower.csis.org/china-greenhouse-gas-emissions/, Retail Banks – Definition, Types, Features, Products, and Income. Apple has long been an investor favorite because of its strong revenue growth and high return on investment. Apple could become the target of growing nationalism and anti-Americanism in China, which could reduce its market share. This segment of the article will portray the pestle analysis case of Apple Company. Apple is highly vulnerable to increases in electricity costs because of its dependence on data centers and other Internet infrastructure. It provides the most useful resource of knowledge to business starters, researchers, strategists, and students. The number of new consumer products Apple can bring out is limited. Legal Factors in PESTLE Affecting Businesses, US Health Care Industry Overview and Career Outlook. In 50 minutes you will be able to: … Apple launched its first product ‘Apple 1 computer’ in 1976. Apple is founded in 1976 by Steve Jobs, Wozniak and Ronald Wayne, which is known for its size and revenue. Non-biodegradable products and waste are polluting the environment which can be a huge problem in the upcoming years for Apple Inc. 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