Potential Political Impact:
One of the political issues that may hit Apple is related to taxation. Having one of the highest cash balances in the corporate sector demands the Company to be tax-liable, which is heavy in case of the native economy. Another major political issue is related to its China dependence. This means that the production of Apple is highly dependent on the situation of politics and society in China (Dudovskiy, 2015). The implication of finding an alternative to manufacturing in China would be an increase in the prices. The market share of the Company could also be affected by the sentiments of Chinese people and economy towards the US and its products. The situation of monopoly that Apple is almost reaching in the music field could make it vulnerable to state level regulations, affecting its share of the market.
Potential Economic Impact:
The major economic concern for the Company would be an increase in Chinese labor costs, which would mean that the cost advantage gained by the Company would no longer exist (SEC, 2015). The stagnation of middle-level incomes in native and foreign lands could cause a reduction in the affluent group of Apple customers. In case there is an increase in the value of U.S. dollar, it would be difficult for Apple to maintain current profits in markets like China and parts of Europe.
Potential Social Impact:
The social impact that Apple needs to consider is the low brand awareness in countries where there will be a boom in consumer spending like Africa. There may be a low attachment to the brand at emotional levels since the younger generation of loyal segments may not be familiar with the brand values. Apple is also not devoid of social backlash. The appeal of the brand could also be affected by the China production of the Company, because of the concerned ethical issues. The political unrest of China could affect the production because the phones are manufactured in China (Makos, 2015). The brand image of the Company could also be at risk because of the music artists and other persons of the society.
Potential Technological Impact:
The imitation of Apple products is found to be high and has been practiced by close competitors of the brand like Samsung and Google. The unique value propositions that once created a competitive advantage for the company are no more unique as the technology of the competitors is as good as theirs. The innovation in technology prospects for the Company is limited (Makos, 2015). Even when the products are diversified, the markets will be limited. There is also a significant amount of threat from cyber criminals who are constantly targeting the systems security of Apple.
Potential Legal Impact:
The entry of Apple into Apple Pay is being closely monitored because of high regulations in the financial services segment. There will definitely be an increase in the rules and regulations’ list that the Company will have to comply to. The litigation occurrences for the Company will increase. With plans for diversification into automobiles and other sectors, where the regulations are quite high, the Company is at high legal risk. There could be an increase in the costs related to litigations handling, insurance covering and regulation compliance. Intellectual property issues are also one major complication. In addition to this, the government is strongly looking after the privacy concerns. The strict telecommunication regulations are also imposed that could limit the usage of the iPhones (Lombardo, 2015).
Potential Environmental Impact:
Being a huge manufacturing Company, Apple does face disposition problems for its scrap parts and the used electronic devices. There are high costs in the safe disposal of these devices, especially when they contain lithium levels. There are rising concerns over the pollution caused in China because of manufacturing units that have been established there (Lombardo, 2015). In future, there are high chances of increase in manufacturing costs for handling these concerns. The supply system of the Company could also be affected by climate changes as a result of global warming and regulations related to the same and other energy concerns. The operating costs are also quite high.
References
Dudovskiy, J. (2015). Apple PESTEL Analysis - Research Methodology. Research Methodology. Retrieved 24 January 2016, from http://research-methodology.net/apple-pestel-analysis/
Lombardo, J. (2015). Apple Inc. PESTEL/PESTLE Analysis & Recommendations - Panmore Institute.Panmore Institute. Retrieved 24 January 2016, from http://panmore.com/apple-inc-pestel-pestle-analysis-recommendations
Makos, J. (2015). Apple Inc. PESTLE Analysis. Retrieved from http://pestleanalysis.com/apple-pestle-analysis/
SEC. (2015). Apple Inc. - Annual Report. Retrieved from http://investor.apple.com/secfiling.cfm?filingid=1193125-15-356351&cik=320193
