PESTLE ANALYSIS OF APPLE INC

• 2021130-- Fatima Modi

• 2021132-- Mohamed Fuaadh
• 2021133-- Aman Molasi
GROUP
• 2021145-- Pallavi Oberai
MEMBERS • 2021154– Ketan Patel
• 2021181-- Nikhil Salkar
• 2021183-- Raghunandan Samant
WHAT IS PESTLE
ANALYSIS?
Political

Environmental Economical

Technological Social

Legal
 APPLE INC

• Founded: April 1, 1976.

• Founders: Steve Jobs, Steve Wozniak and Ronald Wayne.
• Incorporated by Jobs and Wozniak as Apple Computer, Inc.
• The company developed computers featuring innovative graphical user interfaces,
including the 1984 original Macintosh.
• Market Captial: $3 trillion in January 2022.
• Ranked as one of the world's most valuable brands.
 PESTEL
ANALYSIS OF
APPLE INC.
 POLITICAL ANALYSIS

• Major sales contribution: Asia and European countries.

• Political pressure due to supplier worker issues leading to employee suicides.
• Foxconn: Longer working hours leading to stress.
• Explosion in one of the plants leading to lose of life of two employees.
• Faces a legal issue in its home country due to imports of parts which is banned by
US government.
• America’s toughing labor and environmental laws are also making it difficult to
compete in highly competitive environment.
 ECONOMIC ANALYSIS
• The economic condition depicts into strong or weaker purchasing power
among the users.
• Due to premium pricing model, Apple finds it tough to penetrate into
some Asian countries where market potential is high.
• Tough to do trade in many of the principal markets like Europe and
China due to dollar exchange rate could increase.
• Layoffs due to recent pandemic situation globally.
• US fiscal problems and hard landing of large developing countries will
likely continue.
 SOCIAL ANALYSIS
• Consumers have gladly accepted the use of smartphones.
• High opportunity to increase sales and revenues.
• Increase in purchasing power of the customers.
• Apple products are more of a status symbol for many societies, so this mindset has
also raised its sales.
• Moral worries about Apple's assembling in China could restrain its items allure
among socially-cognizant buyers.
• Social status is no longer an effective force for upgrading mobile devices as
consumers are looking for cost-effective and functional solutions.
 TECHNOLOGICAL ANALYSIS
• Technological integration in business projects growth for Apple.
• Innovation is required to develop truly unique services and to fight
tough competitors such as Google, Samsung and Dell.
• High-value technological products are offered at an affordable price by
competitors.
• Apple needs to invest more and more in R&D as of a competitive market
edge.
• Increase demand in cloud computing competitors.
 LEGAL ANALYSIS
• Adhering to privacy regulations is important and government has been
putting pressure on Apple over this.
• Apple Pay a highly monitored financial service sector which could
increase the control and government overlooking it faces.
• Apple relies on IPR law, major revenue from software and music.
• Profoundly vulnerable against both privacy and suit.
• Employee working stress may lead to violations of Labor laws.
 ENVIORNMENTAL ANALYSIS
• Main Production house in China where concerns over environmental
factor is high.
• Business sustainability trend to increase corporate strength.
• Huge internet infrastructure usage increasing electricity costs.
• Disposal of non-working electronic devices which contain lithium batteries
being an increasing concern.
• Apple has now stopped providing charger with newer devices resulting in
reduction of environmental waste.
• Responsibly reporting carbon footprint yearly to find ways to reduce it.
COMPETITOR'S ANALYSIS
SAMSUNG & DELL
PESTEL ANALYSIS OF SAMSUNG

Political Analysis Economical Analysis Social Analysis

• Threat due to tensions • Ongoing global • Tailors its products as
between North Korea economic tension per changing
and South Korea. results in lower consumer preferences
• Facing political purchasing power in various markets
pressure in African • Company adjusts itself • The key point to note
and South American into consumer's here is that Samsung
countries. disposable income. operates in a market
niche
 PESTEL ANALYSIS OF SAMSUNG

Technological Analysis Enviornmental Analysis Legal Analysis

• Samsung can be considered • Samsung has to be aware of • Samsung has had to face
as being among the world’s the need to make its heavy penalties for its
leading innovative products to satiate the alleged imitation of
companies ethical chic consumer. the Apple’s iPad and
• This means that the • it has to ensure that it does iPhone.
company is at an advantage not compromise on the
as far as harnessing the working conditions or the
power of technology and wages it pays to its labor
driving innovation for who are engaged in making
sustainable business the final product.
advantage is concerned
 PESTEL ANALYSIS OF DELL

Political Analysis Economical Analysis Social Analysis

• US under intense • Primary factor is the • Totally different segment
trade war toughens exchange rate since it of market is formed by
import and export of operates in multiple youngster who are much
product countries ahead and equipped to
• The additional adverse • Then comes the taxation learn technology
impact this political policies of respective • Dell should study the
stability has is on supply territory demographics and
of raw material and semi- accordingly set their
finished good carrying for marketing and product
assembly distribution
 PESTEL ANALYSIS OF DELL
Technological Analysis Enviornmental Analysis
• The processor is upgraded • The processor is upgraded
timely. Since Dell is into timely. Since Dell is into
gaming laptops as well gaming laptops as well
(after acquiring (after acquiring
Alienware), there the Alienware), there the
graphic card technology graphic card technology
has to be updated with has to be updated with
challenging competitors so challenging competitors so
as to not be obsolete as to not be obsolete
Legal Analysis
• The taxation laws as well
change from place to place
but Dell has to be in
compliance with them in
every place it operates to
save itself from facing any
penalty
• For example, it had faced
several taxation related
issues in China when it had
not aligned its tax policies to
that of China.
PESTEL ANALYSIS RECCOMENDATIONS TO
APPLE
This PESTEL/PESTLE analysis shows that the majority of external factors in
Apple’s remote or macro-environment provide opportunities. Given its current
industry position, the company can exploit these opportunities to expand its
reach in the global information technology goods and services market. However,
Apple must develop suitable strategies to effectively address the threats
identified, especially those in the legal dimension of its remote or macro-
environment. Based on this PESTEL analysis, it is expected that Apple will remain
in its strong industry position. Nonetheless, the dynamics of the market and the
presence of aggressive competitors could drastically change the company’s
strategic position.
THANK YOU!