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Apple Pestle Analysis 2018

Latest posts by Jonathan Kush (see all)

    Apple is a technology company engaged in the design, manufacture and marketing of smartphones, tablets and personal computers. This report examines the global smartphone market, which has become highly fragmented into high-end and low-end players. Apple being a high-end market player faces competition primarily from Samsung. Nevertheless, in 2018, Apples share of the global smartphone market had fallen to third, behind Huawei and leader Samsung. It is the first time Apple is not in the top 2 global smartphone firms since 2011. Apple has also lost market share in China, falling from top spot to 4th as it battles low cost Chinese rivals.
    Using a pestle analysis for Apple, this report examines how various external factors have impacted the growth potential and performance of Apple. The analysis includes the effect of US tax cuts, and how escalating US-China trade tensions are likely to affect its future revenues and performance.
    In addition, the report looks at how developments in technology and demographics can favor further growth of Apple.

    NO CITATION FOR THIS WORK WAS RECORDED

    Apple Strategy Case Study


    Key Learning Outcomes

    By the end of the case, students should be able to:

    • Understand the broad macro-environment of Apple and the smartphone industry in terms of political, economic, social, technological, environmental and legal factors (PESTEL/PEST/STEEPLE).
    • Use our business strategy case studies to understand real life strategy applications
    • To apply strategy business models and frameworks such as Pestle/Pest/Steeple etc. to real company cases.

     

    Use Pestel analysis example to understand the macro business environment of Apple Inc.

    1.0 INTRODUCTION


    In August 2018, Apple became the first company to reach a market capitalization of US$1trillion, beating old rivals such as Google, Microsoft and Amazon. The Cupertino based tech giant is known for manufacturing a wide range of iconic consumer electronics such as the iPhone, iPad, and computer software like Mac OS, iOS and online services like Apple Music. Founded in 1976 by Steve Jobs, Steve Wozniak and Ron Wayne (Dormehl 2018), Apple now operates 492 stores across 19 countries worldwide (Dunn 2017).

    In 2017, Apple made annual revenue totaling $229.23billion up from $215.64billion in 2016 (Richter 2018) with a profit of $48.35billion up from $45.69billion in 2016 (Annual Report and Form 10K 2017). Apple’s three major markets include USA, UK, and China with a market share of 45%, 37%, and 17.4% market share respectively ahead of major competitor, Samsung with a market share of 29.5% in the USA, 35% in the UK and 2.2% in China.

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