Apple Inc. and the Macro Environment

Topics: Inflation, Apple Inc., Unemployment Pages: 3 (808 words) Published: May 17, 2014
Apple Inc. (Consumers Electronics Company)

Economic Environment:

More or less, every economic factor has an effect on the operations of Apple Inc. These may include; current economic situation (boom, recession, etc.), credit terms, inflation or deflation, strictness of interest rates, unemployment levels, stability of exchange rates, stock exchange trend, etc. Apple’s business can be affected by all these factors either positively or negatively.

For example, during the inflation periods in the United States of America, the purchasing power of the people had decreased and as a result of this, the sales of Apple’s products had decreased with it. To make matters worse, The US dollar had also decreased in value, and so, Apple decided to purchase itself foreign currency to minimize the effect of inflation. This will allow for their revenue from international markets to increase.

Socio-Cultural Environment:

Social factors such as consumer preferences, life priorities, income groups, and perceptions about different brands have a huge impact on the sales of Apple’s products. People all over the world are well aware of its brand image. The social environment has a huge positive impact on Apple for their products are seen as an image for today’s modern individual’s life. People see it as highly reliable and innovative, however they are also seen as highly expensive and the software very limited for people who wish to use their iPhones for more than just phone calls and emails. This regrettably influences people to seek a competitor’s products for a lower price or with more features.

Technological Environment:

Apple currently has the spotlight as the market leader in innovation. However, what Apple fails to realize is that technology can become outdated quite quickly (sometimes over-night) and yet Apple casually cruises through the years releasing new models of products with very little hardware or software changes compared...
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