Apple is a renowned brand in the world.
Its smartphones, PCs,
tablets, Music players, and TVs are very popular. Although it is an
expensive brand, people still go for it as it adds luxury to their
lifestyle.
Political Factors: Improving Free Trade Policies
Apple manufactures its products in China because of the lower
cost of manufacturing charges. Hence, any political rift between
the US and China may affect its operations. But, finding an
alternative is not easy as it is expensive.
You can also not deny that the company is in the dominant
position. It is able enough to deal with some political pressure.
Economic Factors: Rapid Growth of Developing Countries
Apple has to keep in mind that its manufacturing cost will increase
if China increases labor costs.
A decline in middle-class income may also decrease Apple’s
market. If the US dollar witnesses highs, then exchange rates will
increase.
So, it may help Apple to earn good profits in China and Europe.
Social Factors: Rising Use of Mobile Access
Although Apple is popular around the world, it still has not tasted
success in areas like Africa. In the US, low-income people are
against it as it is expensive. So, the appeal of Apple is not much
in China due to ethical concerns.
Apple needs to make people aware of its features.
Technological Factors: Growing Cloud Computing Demand
Google and Samsung have copied some of the features of Apple
products and services. Some other apps and services are also in
the market which shows that Apple is no different.
So, increasing the use of smartphones and tablets may also
decrease the demand for Apple products. In the high-tech
surrounding, an Apple device may seem less secure. So, Apple
needs to consider all these aspects when it comes to technology.
Legal Factors: Increasing Privacy Regulations
Recently, Apple has started a highly regulated service
through Apple Pay.
Apple may have to face some regulations as a result. The
government may also increase oversight of it.
According to some of the reports, Apple may start automobile
manufacturing. It may increase insurance, regulatory costs, and
legal proceedings for Apple.
Environmental Factors: Energy Efficiency Trend
The disposal of nonworking electronic devices is the biggest
environmental issue for Apple. Disposal of lithium batteries costs
are high.
China is much concerned about the environment and pollution.
China has announced that it will limit the use of fossil fuels. It will
increase the electricity cost. So, the manufacturing costs will
increase for Apple as a result.
Conclusion
In conclusion, it is a must for Apple to look into all the matters that
we discussed in the pestle analysis of it. But, this company is
strong enough to keep doing well despite this challenge.