Political Factors : * War, terrorism, geopolitical uncertainties; issues beyond company’s ability to control. * 52% of the company's net sales in 2007 coming from countries outside America. * Manufacturing or logistics might be interrupted by political events in the manufacturing countries.
Economic Factors : * Overall global economy outlook is not good. * Inflation reduced consumer’s expenditure on luxuries. * Economic crisis influencing Apple’s retail’s business.
Social Factors : * A variety of regulations & law for health and Safety may adversely affect company’s financial condition. * It is reported that the improper use of iPod may lead to hearing loss for users. * Technological Factors : * Fast technological changes. * Frequent introduction of new products and the continual improvement in product performance.
Legal Factors: * Employments laws nationally and internationally * Tax laws in the U.S. and other countries * Foreign trade laws * Environmental Factors * Apple products are made from a high grade titanium which is to reduce pollution during the making and be recyclable as well * Products are also energy star qualified so they do not burn as much energy as traditional laptops do
Porter Five Forces
Threat of New Entrants-Low * As the Apple leads the market with the different products like Pc, iPhone, iPad and iPod which are full of the features. * As the Apple’s customer are loyal and they are ready to pay even the premium price to the company. * Apple has no debts. New entrants will not affect them initially. * The leaders of the market already capture the major distributors like * AT&T and Verizon in U.S which gain the 60% of the market. Same thing with Hp, Toshiba, etc.
Threat of Suppliers: Moderate * The supplier of the products like, memory, chips, disks and drive are not the same. * The products that are