PESTLE ANALYSIS OF APPLE

Apple is one of the leading and most visible

companies which have most recognizable
consumer brands. Apple earns great revenue
every year and designs as well manufactures a
great variety of electronic products. The products
include tables. Music players, TV sets as well
smartphones. So find out which factors affect the
world most viable company.

P OLITICAL F ACTORS
Apple, the American company, earns a large
amount of cash which reaches to $34.7 billion in
2015. This has actually generated calls for
corporate taxation in US. Apple is dependent on
China because of lower cost manufacturing
charges. So any political or social effect on China
would mainly affect manufacturing or may
increase costs. Finding alternatives in many cases
would be expensive. Apple dependence on
Chinese market makes it politically unrest in
country. However, the dominant position of
company also leads to a political pressure and
antitrust concerns which will limit market share.

E CONOMIC F ACTORS
If labor costs increase in China, then Apple have to
pay more on manufacturing products. It is true
that stagnating middle-class incomes in many
countries would lessen the potential market for all
high consumer products. If US dollar gets stronger,
then exchange rates would increase inmarket
which will lead Apple to do more expensive
business in China and Europe.

S OCIAL F ACTORS
Apple growth can be made when consumer will
demand products in areas like Africa. The younger
people of the Apple Company who have
contributed in establishing company will lack their
attachment which will drive sales. Among many
customers of US, a black leash has been observed
against expensive products. Ethical concerns of
China would limit appeal of products. So socially
consciousness among customers is highly
recommended.

T ECHNOLOGICAL AFFECT
Competitors of Apple, like Google andSamsung,
have duplicated many Apple services and
products. A variety of apps and services offers
same capabilities which show that Apple is not
unique. Many consumer products are limited, and
new offerings also have alimited market. The use
of smartphones and tablets will lessen the
demandfor Apple products. The growing
technological capabilities will increase cyber-crime
and make Apple system less secure.

L EGAL FACTORS
Apple has recently accepted high regulated
services which are offered via Apple pay. This will
increase level of regulation and also Government
oversight. Financial services are offered which
offers increased levels of legal action. Various
news reports indicate that Apple planning
including automobile manufacturing. Auto
business will also increase insurance, legal
proceedings and regulatory costs of Apple.

E NVIRONMENTAL FACTORS
The biggest environmental issue faced by Apple us
nonworking and disposal of electronic devices. The
expense of lithium batteries disposal costs very
high. Environmental and pollution concerns in
China will finitely affect growing concern which will
increase regulation and result in high
manufacturing costs. The decision of China to limit
the use of fossil fuels and cutting down
greenhouse gasses will increase electricity costs
increasing manufacturing expense for Apple.

Apple mainly depends on avariety of products

covered by intellectual laws such as music and
software this will leave company vulnerable
regarding legal action and piracy concerns.
Conclusion:
Apple Company will still be able to survive despite
of all of the challenges because it owns impressive
abilities which will propel for revenue growth in
upcoming years.