Maximize your understanding of the product with our detailed PESTEL analysis of iPhone 5, designed to reveal the key drivers of success and failure
The Apple’s lightest phone ever, the iPhone 5 is an amazing combination of innovation and advanced technology highlighting stunning features and blazing performance to satisfy the users. Being the most beautiful device ever created by the company, this smartphone has world’s advanced operating system iOS 6 with latest applications. The PESTLE ANALYSIS effectively addresses the external factors showing the successful performance of iPhone 5 over the years.
Political Factors
The change in government can bring new business rules which may affect the iPhone 5 sales and revenues. Thus stability of government and the political situation is a must for its successful business. The improvement in free trade policies in recent years have enabled the Apple Company to distribute its product to more countries. The income inequality is one major issue in US which calls for the high corporation taxes for the company. The growing nationalism and anti-Americanism can result in the reduced market share of iPhone 5 in countries like China.
Economic Factors
The iPhone 5 has a measurable impact on the US economy as when Apple introduced its sale, the customers were ordering more phones than the company could deliver. Being the core of Apple, the iPhone can now move the entire stock market. The launch of any new products as iPhone 6 brought significant change to the sales of iPhone 5 with its large screen, latest camera improvement and an amazing display capabilities. However iPhone 5 is not going out of market for some of the problems of durability and IOS system in the new models.
Social Factors
The increased mobile access and the social media use has enhanced the growth of iPhone 5 sales. The applications as Facebook and Instagram have brought new social trends and now mobile phone is much more than a necessity for the communication. The consumer preferences and taste play major role in choosing the color and design of smartphone. The phone is designed with special features to respond to the customer demands from various regions and nationalities who speak different languages.
Technological Factors
Being highly competitive and subject to any sudden technological change, the global smartphone market puts a lot of risk on iPhone 5 manufacturer to compete effectively. Although Apple has kept its lead with the advanced technology but the risk of any competitor coming along is always there. The iPhone 5 advanced operating system is clear example of new technology introduction and application updates. Similarly the cloud friendly devices and applications are now need of the day.
Legal Factors
The governments of various countries put a lot of legal pressure on smartphone market through patents and laws. The companies as Apple and Samsung have to meet all the patent requirements and build their strategies to avoid any violation. They have to get their products registered by the patent firms before launching them in market. No texting while driving law has been implemented successfully in various towns. Now another law of no texting while walking is also under consideration.
Environmental Factors
While having heavy reliance on data centers producing highly polluted carbon, the iPhone 5 manufacturer Apple pays utmost importance to improve the environmental performance of its business. The products design is created to minimize the environmental impact. The iPhone 5 is provided with arsenic free display glass and the mercury free Led display for the same purpose. The power adopter provided also fulfills the energy efficiency standards to the full.