Political and Legal 1

Political and Legal
1. Apple strongly rely on lower cost manufacturing in China. (limited by Chinese government policy)
2. An increase in US corporate taxes.
3. Apple’s manufacturing and markets depend on China, which makes Apple is vulnerable to political unrest in China.
4. Apple could become the target of growing nationalism and anti-Americanism in China, which could decrease its market share.
Economical
1. Increasing of labor costs in China could rise the expense of Apple’s products.
2. Slow developing middle-class incomes in some developed countries, such as the United States, could decrease the potential market spaces for higher-end consumer goods such as iPhone and iPad made by Apple.
3. The strong U.S. dollar could increase exchange rates, which will increase the expenses for Apple to manage business in some markets like Europe and China.
Social
1. Lack the strong emotional loyalty to Apple products around young people, which drives sales of Apple.
2. Apple’s music marketing strategy has created resentment which causes some public criticism from major recording starts, company’s picture could be stained.
3. Apple has close association with China, which could indirectly lose some potential clients in other regions, such as North America and Europe.
Technological
1. Competitors such as Google and Samsung have showed a strong ability to duplicate Apple’s products and services. A lot of Apple’s signature services and products are no longer unique and special.
2. Apple’s own developing operating system can limit the various applications being available to iPhone’s users.
3. Increasing use of cellphones and tablets will decrease demand of Apple’s computer (iMac).

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