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The key components of the PEST Analysis framework that are relevant to Apple's situation are Political, Economic, Social, and Technological factors.
Political factors include taxation policies, trade regulations, and political stability. For Apple, the high corporate taxation in the United States and potential limitations on Chinese imports are significant political factors.
Economic factors involve economic growth, inflation rate, and exchange rates. Apple's large cash reserves and dependence on low-cost manufacturing in China are relevant economic factors.
Social factors encompass population growth rate, age distribution, and cultural aspects. The social and political unrest in China, which could affect Apple's manufacturing costs, is a key social factor.
Technological factors include technological advancements, automation, and innovation. Apple, being a leading technology company, is heavily influenced by these factors.
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Dive into competitiveness data and take into account the dynamics of your venture’s financial, technological and market performance with our PEST Anal...
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Apple is a leading American technology company that has collected a large amount of cash. As of June 30, 2015, the company had $34.7 billion in the bank. This means higher corporate taxation in the United States, where income inequality has become a major political issue. Apple is heavily dependent on low-cost manufacturing in China. The risk here is that social and political unrest in China may negatively affect manufacturing or increase manufacturing costs for Apple. There has also been a discussion about limiting Chinese imports in the U.S. in an effort to support native manufacturing.
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