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Pestal

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PESTAL Analysis:

Political | Economical | * Bad global relations, wars, and terrorism can affect the business of Apple as international sales accounted for 63% (Apple, 2011). * Apple manufactures most of its products & components outside the U.S. like Czech Republic, Korea, Ireland, Cork, and China. Recently, China is preparing for its leadership transition later this year that may influence the business of the Apple (Carnegie Endowment, 2012). | * Despite inflation rate being high, while the earning of the consumer’s has not significant changed; Apple in 2012 was able to end a fantastic fiscal year with record September quarter sales (Apple, 2012). * Apple uses financial instrument like foreign currency forward and option contracts, this is to safeguard it for making any losses if a particular currency devalues (Apple annual report, 2009). | Social | Technological | * Apple has created the largest virtual media store of digital music known as iTunes. The average age of world’s population is growing due to decline in fertility and a 20-year increase in during the second half of the 20thcentury. These factors will lead to an increase in the number of persons aged above 65 years during 2010-2030. However, Apple targets ages between 12-35 years. Therefore, creating a challenge for Apple as above 65 population is increasing in the recent years (Cdc gov, 2013). * The rising use of social networking sites like Facebook, Twitter, etc; has led to the increased use of iPhone apps, having a positive impact on Apple’s business. | * Apple IPhone 3G is considered to be one of the biggest mobile wireless developments in 2008. Other mobile providers currently supporting new Long Term Evolution (LTE) 4G technologies based on the UMTS cellular standard. Chips that support both types of 4G networks are already developed and are expected to be included in

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