Apple SWOT & PESTLE Analysis

Introduction Of Apple Inc

Apple Incorporated is one of the world’s most valuable companies. Established in 1976 by Steve Jobs and Steve Wozniak, Apple is a globally recognized brand today. It is noted for the exceptional quality of its digital products & services, impeccable service features & security, groundbreaking research & development, and strict proprietary licensing.

2001 saw the introduction of the iPod and the beginning of Apple’s spectacular success story that continues till date. Since then, Apple has made stellar advancements in research, developed numerous successful devices such as the iPhone, the Apple TV, the iPad, the Apple Watch, introduced powerful features to all OS, developed myriad variations of its products, and more.

Developing a SWOT & PESTLE analysis on the world’s 3^rd most valuable company (Fortune 500) and a market leader of the electronics sector is no easy feat. However, MyAssignmenthelp.com is a leading academic service provider that can assist you in that matter.

Please read on for a glimpse of the basic framework of our Apple SWOT & PESTLE analysis.

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SWOT & PESTLE Analysis of Apple

Whether you are writing a SWOT & PESTLE analysis for Apple or an Apple branding & store design case study, thorough research of crucial strategies & policies, their nuances & attributes, and vital influencing factors are essential. Experts of MyAssignmenthelp.com carry out exhaustive research and in-depth analysis for comprehensive solutions.

Get a glimpse of their insightful research through the skeletal framework of our PESTLE & SWOT analysis for Apple below.

Apple SWOT Analysis

• STRENGTHS

2. The Most Valuable Brand Of 2021 - Apple was the most valuable brand according to Forbes in 2020 with a value of $ 241.2 billion. It was also ranked number 1 by Interbrand for the 9^thconsecutive year.
3. Globally Recognized & An Industry Powerhouse – Apple is an elite of the electronics industry that’s known for the quality of its products & services. The brand is recognizable across the globe and has a loyal customer base that runs in the millions.
4. Unmatched Technological Prowess – Advanced personalized computers, potent & agile operating systems, proprietary application development, successful implementation & integration of smart technologies, etc. – Apple is the prominent pioneer and an icon in the world of technology.
5. Brand of Choice –Apple is a favorite among the rich & elite and creative professionals. Top-quality, airtight privacy, exceptional performance, and innovative technologies suit the needs of corporations and significant projects.
6. Leader in Research & Development - As mentioned, Apple is a driving force in research & development in the technology industry. The company gathers vast data and employs powerful analytics tools to enhance products and services.
7. Successful Expansion of Services – Apple has expanded across various domains. For example, the company has brought forth digital content stores, streaming services, iCloud, AppleCare, payment services, the Apple Card, Appel TV+, etc.

• WEAKNESSES

5. Exorbitant Prices– Almost all of Apple's products are exceptionally highly-priced. This is because they are considered luxury items exclusive to high-income consumers.
6. Limited Consumer Base & Promotion – Apple depends primarily upon its global brand recognition, iconic products, and flagship retail for promotion. Consequently, it does not indulge in aggressive, multi-channel marketing like other major brands.
7. Limited Competency In Certain Domains – Apple’s rapid expansion into different domains leads to direct competition with major players. Despite powerful R&D capabilities, intense competition from dominant brands can be a serious challenge as the company spreads itself too thin.
8. Incompatibility Issues – Apple’s technologies are known for their proprietary nature & complete incompatibility with other software & devices. Apple consumers can only work with techs supported by Apple if they intend to continue using Apple products.
9. Unethical Data & Business Practices- Apple has been time & again accused of tracking consumers and analyzing consumer data without consent. Apple has also reportedly colluded with companies like Google to subvert competitors in their markets.

• OPPORTUNITIES

3. Consistent Customer Retention – As a dominant power in the technology sector and a world-renowned brand, Apple has a highly loyal customer base. The retention rate is an astonishing 92%.
4. Highly-Qualified & Skilled Workforce – Apple recruits the crème de la crème from across the globe. Stringent recruitment policies ensure only brilliant intellects and capable professionals find a place in the company’s workforce.
5. Massive Distribution Network – Apple’s distribution network is spread across the globe and implements flexible supply chain & distribution strategies.  
6. Introducing Latest Innovative Technologies – AI, autonomous driving systems, robotic process automation, intelligent wearables, etc. – Apple is fast implementing and developing powerful technologies across its existing & new portfolios. 
7. Business Expansion - Apple is expanding into the smart wearable industry, the self-driving vehicle industry, streaming services, chip manufacturing, etc. The company has the resources and value to excel and may do so with careful strategies.

• THREATS

1. The aftermath of the Covid-19 Pandemic disrupted sectors and businesses all around, and Apple was not immune to the devastating economic impact of the Covid-19 pandemic.

2. Malicious Use of Technologies- Many of Apple's technologies have suffered from misuse by miscreants and malicious individuals. The iCloud hack of 2014 and the recent Air Tags controversy are prominent examples.

3. Increasing Competition – Microsoft, Samsung, Google, Dell, Sony, LG-, Netflix- Apple competes with formidable companies across all its business domains.

4. Poor Market Penetration In The Smartphone Sector –Google's open-source Android OS enjoys 72.23% global market share in the industry, while Apple's proprietary iOS has only 24.55%. Major players such as Samsung, HTC, Lenovo, etc., work with Android due to the compatibility & closed nature of iOS.

5. Economic Handicaps – High tariffs, strict tax regulations, and other bureaucratic red tape have been prominent thorns in Apple's business.

6. Allegations & Lawsuits – Apple is the accused of numerous lawsuits and allegations through the years. The company has been accused of throttling CPU performance, implementing backdoor mechanisms, complete market monopoly, lack of transparency, and other unfair business practices.

Let’s now move on to Apple’s PESTLE analysis.

Apple’s PESTLE Analysis

• Political Factors

1. High corporate taxation
2. Manufacturing tariffs
3. Political unrest
4. Dependency on Chinese manufacturing and marketing conditions
5. Increasing costs of procurement
6. Antitrust concerns, lawsuits, and allegations of unethical practices

• Economic Factors

1. Economic sanctions by the United States on China, Apple's most significant overseas manufacturing region and market
2. Increasing labor costs
3. Stagnating middle-class incomes  
4. Shrinking markets
5. Economic downturns due to Covid-19 pandemic
6. Increasing exchange rates

• Social Factors

1. Growth in consumer spending in the coming decades
2. The rising social backlash against luxury goods and elitist business practices
3. Ethical and trust concerns

• Technological Factors

1. Implementation of powerful technologies such as AI, data analytics, IoT, edge & cloud computing
2. Stiff competition from Google and Microsoft on product development & tech innovation fronts
3. Lowering demands of smartphones & tablets
4. The need for top-tier cybersecurity features to counter misuse & abuse (Apple Air Tags controversy)

• Legal Factors

1. Government lawsuits (FBI vs. Apple)
2. Considerable regulations in financial and automobile manufacturing sectors
3. Piracy and Intellectual Property Rights

• Environmental Factors

1. Disposal and recycling of use products
2. Pollution and energy consumption
3. Environmental sanction policies
4. Effect of climate change on supply chains
5. Increasing electricity costs across the globe
6. Reduced availability of resources

The above is just the basic framework of our PESTLE analysis of Apple Inc. 2021. Connect with MyAssignmentHelp.com’s experts and learn how to develop outstanding Apple PESTLE analysis, Apple SWOT & PESTLE analysis, Apple CSR case study solutions, Apple teamwork case study, Apple vs. FBI case study answers and solutions, and much, much more.

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Whether you are developing an Apple Watch PESTLE analysis or one on iPad, know that you are developing critical research skills and working on effective planning & strategy development tools.

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Most Popular Questions Searched By Students:

Q.1. What Is an Apple Pestle case study?

Apple PESTLE case study investigates the political, economic, social, technological, legal, and environmental factors affecting the company.

Q.2. What internal factors affect Apple?

Human resources, financial resources, procurement & supply chain, shareholders, cost of production, production strategies, and marketing strategies are the primary internal factors affecting Apple.

Q.3. How is Apple affected by economic factors?

Economic downturn, strict sanctions, and adverse policies affect procurement, manufacturing, and sales of any company, including Apple.

Q.4. What are the 4P global strategies of Apple Inc?

Product mix, placement mix, promotional mix, and pricing strategies are the 4Ps of Apple's global marketing strategy.

Q.5. What marketing strategy does Apple use?

Market segmentation targeting, superior brand positioning, immense brand equity, and the 4Ps are core aspects of Apple’s marketing strategy.

Q.6. Do you have any Apple corporate experts to do pestle analysis?

Well, while we do not have corporate experts from Apple, our SMEs are highly skilled, possess stellar graduate & post-graduate qualifications, and thorough professionals. In addition, they conduct extensive research and have sound knowledge of Apple’s corporate strategies.