Political Factors Affecting Apple’s Business

Political external factors in the remote or macro-

environment of Apple pose mainly opportunities. This feature of the PESTEL / PESTLE researc
h model demonstrates the effect of governments and related organizations on companies. In
Apple’s case, the following are some of the major political external factors:

● Improving free trade policies (opportunity)

● Stable politics in developed countries (opportunity)
● Trade disputes, especially between the U.S. and China (threat)

Over time, better overall free trade policies are being developed. The external competitive
consideration enhances the prospects for Apple Inc. to sell more of its goods worldwide. The
PESTEL / PESTLE analysis also identifies the stability of the developed countries ' political
landscape as an opportunity for Apple to grow, given the reduced political problems affecting
business operations in these countries. Despite these potential trends, the political external
factor of trade disputes, particularly between the United States and China, poses a threat to the
potential growth of the company and the global sales revenues of its products, such as the
consumer electronics. China-U.S. growing, for example. Tension could lead China to place
higher tariffs on imported electronic components used in Apple's consumer assembly. Based on
this part of the PESTEL / PESTLE analysis, Apple can improve its performance by taking
advantage of political opportunities in its remote or macro-environment, although caution is
needed to ensure stability despite trade disputes.

Economic Factors Important to Apple Inc.

Most of the external economic factors in the remote or macro-environment of Apple create
opportunities. This aspect of the PESTEL / PESTLE analysis model indicates the market and
industry conditions that affect firms. In this external review of Apple Inc., the following external
economic factors are the most significant:

 Stable economies of developed countries (opportunity)

 Rapid growth of developing countries (opportunity)
 Increasing disposable incomes among target customers (opportunity)

The economic stability of the developed countries creates opportunities for Apple to expand.
Nonetheless, the rapid growth of developing countries is a more important external economic
factor in this PESTEL / PESTLE analysis case in terms of funding for the growth of technology
sector. For example, the high economic growth rates of Asian countries are an opportunity for
Apple to increase its revenues through sales in these foreign markets. In relation to higher
disposable incomes, more incentives are generated to market the relatively high-priced
technology products of the business. In taking advantage of these economic opportunities, it is
essential to consider the competitive strengths of the international market as described in the
Porter's Five Forces Analysis by Apple Inc. These external strategic factors indicate the
potential for growth of the corporation and its competitors, particularly large multinational
companies such as Samsung. Based on this part of the PESTEL / PESTLE analysis framework,
speed and efficiency are critical to Apple Inc.'s growth and expansion efforts, as competitors are
also targeting the same economic opportunities.

Social/Sociocultural Factors in Apple’s Industry Environment

Apple's market is subject to social or socio-cultural trends. This element of the PESTEL /
PESTLE research model illustrates the social external factors that influence consumer behavior
and expectations. In the case of Apple, the following socio-cultural trends in the remote or
macro-environment are significant:

 Rising use of mobile access (opportunity)

 Increasing dependence on digital systems (opportunity)
 International anti-Apple sentiments (threat)

The growing use of mobile access is an opportunity to increase the profits of Apple Inc. This
social external factor relates to the increasing demand for devices such as smartphones and
tablets. This PESTEL / PESTLE research also points to a growing reliance on digital systems,
which is another socio-cultural trend which creates opportunities for Apple to sell more of its
goods on the basis of higher demand. Despite these incentives, the company faces the social
risk of opposition to its business operations. Anti-Apple feelings are mounting, calling into
question business practices, such as the company's litigation against third-party repair service
providers that fix devices such as iPhone and MacBook. In the scope of the PESTEL/PESTLE
analysis, these attitudes have the potential to decrease brand awareness and customer trust in
the company's technical products. Such socio-cultural factors reinforce the value of the
corporate social responsibility policy of Apple Inc. Such a strategy helps to satisfy stakeholders,
including customers and governments. In addition, the corporate culture of Apple Inc. is a
relevant factor because it impacts the quality of service offered to consumers. The internal
cultural approach of the company must be consistent with socio-cultural trends affecting the
global market. This part of the PESTEL / PESTLE analysis of Apple Inc. identifies opportunities
for growth as well as threats to business. These strategic concerns require the company to
continue to improve its policies and practices, as well as its approaches to technological
innovation. Furthermore, the advertising strategy of Apple Inc. or 4Ps must include approaches
that suit certain external social influences.

Technological Factors in Apple’s Business Environment

Technology external factors in the remote or macro-environment of Apple generally provide

opportunities for the enterprise. Current technologies and technological trends are assessed on
the basis of their impact on business conditions in this aspect of the PESTEL / PESTLE analysis
framework. In the case of Apple's external research, the following external technical
considerations are the most significant:
  Growing cloud computing demand (opportunity)
 Increasing technological integration in businesses (opportunity)
 Growing mobile market (opportunity)
 Growing technological capabilities of other firms (threat)

This PESTEL / PESTLE report by Apple Inc. describes the growing demand for cloud computing
as an opportunity for business to grow. The business is now providing cloud services, albeit to a
limited extent. Through taking advantage of this opportunity, together with help from Apple Inc.'s
corporate structure, the creation of an extended cloud infrastructure could increase the
productivity of business through providing cloud computing services. In relation to this, the
external strategic factor of increasing technological integration presents an opportunity to
enhance the company's services and expand its business by offering its technological goods
and services to more customers, including organizations. In addition, this PESTEL / PESTLE
review considers the rise of the mobile market as an opportunity for Apple Inc. to generate
higher sales, including profits from the App Store and associated digital content distribution
platforms. However, the technological advancement of other firms is threatening the company,
as more new players could enter the market. Thus, in order to ensure the achievement of Apple
Inc.'s corporate vision and mission statements, it is beneficial to strengthen the business
capacity to take advantage of the opportunities and to protect the business from the competitive
threats identified in this part of the PESTEL / PESTLE analysis.