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PESTLE Analysis of Apple | Apple Pestle Analysis

 

PESTLE Analysis of Apple helps to monitor their progress and necessary steps to further progress. Apple is one of the reputed electronics brands in the world. It is a favorite brand of investors due to its high return on investment and strong income growth. The company started its operation as a computer company, but now they are manufacturing a broad range of electronic devices such as smartphones, music players, television sets, and tablets. They also designed their own proprietary software and have a unique operating system. They are also providing information and entertainment services. So, it is the biggest music retailer and smartphone applications. The main attraction of this brand is its uniqueness and effective business model. In terms of profits and growth, it is a leading player in the market.

PESTLE Analysis of Apple | Apple Pestle Analysis

Political Factors:

  • There is no doubt that Apple is a top player in the relevant industry. In 2015, it had 34.7 billion dollars in stocks. This thing makes a great political impact in terms of taxation.
  • It is a fact that Apple is heavily reliant on low-cost manufacturing in China. If anything happens to the Chinese economy in terms of political and economic, it creates a bad impact on the manufacturing process of Apple. But, due to political tension between the US and China, impacts the working of Apple.
  • Apple is trying to find alternatives to manufacturing in China. This thing can cause an increase in the prices of Apple products.
  • Apple is heavily dependent on the Chinese manufacturing market but certain political unrest can cause a negative impact on the operations of Apple.
  • Due to anti-Americanism nationalism in China, there is a chance that Apple could decrease its market value.
  • The close relationship with China in terms of manufacturing. Due to political unrest, it can threaten the working of Apple.
  • As we know that, Apple is a dominant player in the music field but certain kinds of political pressure can reduce its market share and value.

PESTLE Analysis of Apple | Apple Pestle Analysis

Economic Factors:

  • Due to rising charges of labor in China, this economic factor can disturb the revenue system of Apple and also results in the increasing cost of products.
  • The declining income of middle-class people can also create a bad impact on the profitability of Apple. It shrinks the Apple market and market value.
  • The increasing exchange rate of the dollar can also create some trouble for Apple in specific regions including China and Europe.

PESTLE Analysis of Apple | Apple Pestle Analysis

Social Factors:

  • Apple has a big opportunity in regions like Africa. They love to use branded products which offers a great opportunity for Apple. They can target these countries in order to enhance their revenue game.
  • In order to derive sales, Apple can attract younger people who love to use new technologies. This kind of strategy helps the company to enhance its profitability.
  • The unconstructive criticism against costly and modern products among users in the Europe and US.
  • The manufacturing plants in China can disappoint the socially-conscious users in terms of quality. This thing limits the sales of Apple.
  • The strong relation with China can also upset some users and investors in different regions such as Europe and North America. The political unrest with China can also create a bad impact on the sales of Apple.
  • Apple faces huge criticism from big recording stars which can tarnish Apple’s reputation and image globally.

PESTLE Analysis of Apple | Apple Pestle Analysis

Technological Factors:

  • There are several big competitors in the electronics market such as Samsung and Google that offer competitive products. Recently, Google has manufactured a payment app like Android Pay which has the same functioning as Apple Pay. This thing erodes the uniqueness of Apple.
  • Apple’s main revenue generated through specific segments like smartphones and mobile accessories. Its different offerings like Apple TV are not so popular among users.
  • Different android companies are giving tough competition to Apple. The increase in demand for Android tablets and smartphones continuously threatening the sales of Apple. Moreover, Apple is also facing a reduction in the sales of personal computers.
  • As compared to android, Apple’s offering in terms of apps is very limited. That’s why most of the users are moving to android smartphones and tablets.
  • Apple’s system is really vulnerable to cybercriminals which can damage the integrity and reputation of Apple.

PESTLE Analysis of Apple | Apple Pestle Analysis

Legal Factors:

  • Recently, Apple has entered the extremely regulated financial services through ‘’Apple Pay’’. There is a chance this thing increases the regulations from the government.
  • By providing financial services, there is a possibility that the company could experience increased levels of lawsuits.
  • According to media reports, Apple is planning to enter automobile manufacturing. In this way, they have to face regulations and other costs like insurance and court case.
  • Apple is heavily dependent on its software and music platforms because these sectors are highly profitable. But, this kind of dependence makes the company weak in case of any emergency or incident.

PESTLE Analysis of Apple | Apple Pestle Analysis

Environmental Factors:

  • It is really a big issue for Apple to dispose of its non-working electronic devices. it is really difficult to dispose of these devices especially those that contain lithium batteries and it requires a huge sum. This thing is really problematic for Apple and they are facing criticism from environmental activists over this problem.
  • There are some other factors like pollution and waste also affecting the brand’s name. Due to this problem, they have to face higher manufacturing charges and regulations. This thing can break the image of Apple. So it is really important for the company to address these problems on a priority basis.
  • China is trying to limit fossil fuel and greenhouse gases which directly results in an increase in manufacturing costs due to an increase in electricity rates. This thing can damage the revenue game of Apple.
  • Due to strict climate change rules, this thing can affect the supply chain network of Apple.
  • There is a chance that Apple could face higher costs and regulations due to energy use and side-effects from data centers.
  • Increasing electricity prices in China can also break the infrastructure of Apple.

Conclusion:

With this PESTLE analysis of Apple, it is very clear that Apple is a leading global player in the electronics market. They just need to fix the environmental problems and manufacturing process. The main threat for Apple is political instability between the governments of the US and China. In terms of uniqueness and reputation, Apple is still is number and has a strong consumer base. By adopting new technologies, they can expand into different regions and can easily attract new customers. In short, Apple is doing really well in the relevant industry.

 

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