PESTLE analysis of apple

Apple Inc.

Apple is one of the largest and most popular American multinational companies which is involved in designing, developing and selling of online services, computer software and electronic devices. It is well known for its innovative capability. Its headquarters are in California. It was founded by three people viz. Steve Jobs, Steve Wozniak and Ronald Wayne on April 1, 1976. Hardware products of  the company comprise of Mac personal computer, iPad, iPhone, Apple watch, Apple TV, iPod media player, software products of the company include iOS, macOS, tvOS, iTunes media player and watch OS operating systems, Safari web browser and many more. iOS App store, Apple Music, Mac App store, iTunes store are among its online services. Apple is maintaining its position consistently as far as profits, market capitalization, revenue, profit generation and consumer cachet are concerned. The company was able to touch a trillion dollar market capitalization in the year 2018, even if it was for a short period. The iPhone is referred to as the golden goose of the company as it brought huge amount of profits to the company. As far as revenue is taken into consideration, Apple is considered as one of the largest companies in the world. Apple occupies the third position in the manufacturing of mobile phones after Samsung and Huawei. The current study will throw some light on PESTLE analysis of Apple Inc.

PESTLE Analysis of Apple Inc.

For the Apple, the PESTLE analysis will help the company in the assessment of external factors which may influence the new projects that are introduced by the company. Contrary to SWOT analysis, PESTLE analysis mainly focus on external factors which might influence the status of the company in the present or future. Under PESTLE analysis, we discuss political, economic, social, technological, legal and environmental factors affecting the organisation.

  • Political– Political factors viz. disputes related to trade with China creates tension within the company. Changes and restrictions that are introduced frequently by the government regarding the issue of employment visas is another political factor that can impact the workforce of the company.
  • Economical– If economic condition of the countries or any place changes, it will definitely impact the business of the company. The fluctuation in the rates of foreign exchange is another economical factor which impacts the company’s business.
  • Social- Social factors are in the favour of the company’s reputation presently. It is considered as one of the most prestigious brands by the public. This directly reflects the company’s immense hard work on consumer behaviour marketing strategy which has eventually helped the company to gain immense amount of profit from its consumers.
  • Technological- As far as technological aspect is concerned, company has been always found to be up to the mark in the use of recent technology for designing their devices, electronics and software. Moreover, the company has been found to focus on innovative technologies for bringing out the best for the people.
  • Legal- Legal factors influence company’s global operation as it has to comply with the rules and regulations of the various countries. For e.g. it was reported earlier that the company was going through a legal stress when US government banned the import of materials for iPhone manufacturing in America, but later on this issue was restored by the company. So such types of legal obligations can affect the company’s working under various circumstances.
  • Environmental- The major environmental factor which is bothering the company is disposal of lithium batteries as well as electronic junk. The company has to spend huge amount of money to dispose them. It has to put so much amount of its money in disposing junk as environmental factors are associated with it. The decision of China to minimize the use of greenhouse gases and fossil fuels may influence the company’s electricity charges in future. Transoceanic supply which forms the core of the supply chain of the Apple may get influenced by increasing global warming.

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