Apple Inc. was founded in 1976 by Steve Jobs, Steve Wozniak, and Ronald Wayne. It is now considered one of the Big Four technology companies along with Amazon, Google, and Facebook. A PESTEL analysis of Apple Inc. shows that political factors like the US-China trade war and economic factors like rising USD prices and Brexit could threaten Apple's performance. However, strategies to address external factors through technological innovations and addressing social and environmental concerns have contributed to Apple's continued success. The analysis concludes that Apple must continue evolving to maintain its leadership position amid increased regulations and competitive threats.
Investment in The Coconut Industry by Nancy Cheruiyot
PESTEL Analysis of Apple Inc
1. PESTEL Analysis: Apple Inc.
Siddhi Bhosle
Suyash Birje
Annu Chawala
Sneha Gohil
Shreya Hundekar
Paritosh Jade
Amod Jadhav
Group Members:
2. Apple Inc. - Think Different!
Founded by Steve Jobs, Steve
Wozniak, and Ronald Wayne in April
1976.
A tech fairy-tale of one garage, three
friends and very humble beginnings.
The name was conceived by Jobs
while returning from an apple farm.
Apple I, Apple II and The MacIntosh!
Considered one of the Big Four of
technology along with Amazon,
Google, and Facebook.
Headquartered in Cupertino,
California led by CEO – Tim Cook
First Logo of AppleThe Spaceship Campus“You want to be the pebble in the pond
that creates the ripple for change.”
4. Apple Inc. – PESTEL Analysis!
PESTEL refers to the analysis of external factors which play a vital role while conducting
research before beginning a new project.
Reasons for Apple Inc’s High Performance
Effectiveness in addressing external factors.
Various strategies created to exploit opportunities and
protect the business from threats.
This PESTEL analysis shows that the company must
continue evolving to keep its leadership position.
5. Apple Inc. – Political Factors
• President Trump signed the Tax Cuts and Jobs
Act into law in 2017
• Reduction of the corporate tax rate from 35%
to 21%
• Apple has kept majority of its external earnings
and profits outside the USA
• Trump’s tax reform has helped boost Apple’s
growth
• The China-US trade war greatly threatens
Apple’s performance in China
• iPhone imports into China could be heavily
taxed
• Xi Jinping could limit their operations causing
delays for Apple products
6. Apple Inc. – Economic Factors
Rising price of USD
Brexit and Apple
Increased labor costs in China
7. Apple Inc. – Social Factors
Society’s culture and way of doing things impact the culture of an organisation!
• Shared beliefs and attitudes of
customers
• Rising use of Social media
• Mobile access through devices
like Apple Watch etc.
8. Apple Inc. – Technological Factors
Flagship Killers Proprietary software and OS R&D Spendings
• Competitors offering the same• Technological Breakthroughs • Artificial Intelligence
Other Technological Factors
9. Apple Inc. – Environmental Factors
Different norms or environmental
standards
Disposal of used electronic devices
Pollution and other environmental side
effects
China's efforts to cut greenhouse gases
Climate change created by global warming
10. Apple Inc. – Environmental Factors
• Entering Automobile Industry
• Breach Of IP Laws
• Apple fined €14bn for violating EU law
• Highly regulated financial services
sector
11. Conclusion
• The Cupertino based tech giant became the first trillion dollar company in
2018
• Apple lost its second spot in the global smartphone market to Huawei
• Apple has lost market share in china
• Apple is facing increased regulation in key markets including China, US and
lastly the EU
• Positives for Apple include Trump’s tax reform and a brighter outlook for the
UK economy