Table of ContentsPolitical FactorsEconomic FactorsSocial FactorsTechnological FactorsApple Inc., a dominant player in the technology sector, has always dominated the market with innovative products and strategic business practices. To understand the company's external environment and the factors that influence its operations, a PEST analysis, focusing on political, economic, social and technological aspects, is essential. This comprehensive analysis will elucidate the multifaceted dynamics that shape Apple's business environment. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”?Get the original essayPolitical FactorsPolitical factors encompass the influence of government policies, regulations, and political stability on Apple's operations. Apple's global reach makes it vulnerable to political changes in various regions. For example, ongoing trade tensions between the United States and China are having a significant impact on Apple's supply chain and production costs. According to the US Census Bureau, China accounted for almost 42% of Apple's total net sales in 2020, highlighting the company's reliance on the region (US Census Bureau, 2020). Apple is the subject of numerous antitrust investigations in the United States and Europe, questioning its App Store policies and the 30% commission fees charged to developers. The European Commission's investigation, opened in 2020, could lead to substantial fines and force Apple to change its business model (European Commission, 2020). Additionally, tax policies and regulations of different countries affect Apple's profitability. The European Union's 2016 tax ruling, which required Apple to pay €13 billion in back taxes to Ireland, highlights the financial implications of government decisions (European Commission, 2016). Economic Factors Economic factors include things like inflation rates, economic growth, exchange rates. interest rates and consumer purchasing power that influence Apple's business. The global economic environment significantly affects Apple's revenue and profitability. The COVID-19 pandemic, for example, has disrupted global supply chains and reduced consumer spending. In 2020, Apple reported a 7.2% year-over-year decline in iPhone sales, attributed to economic uncertainties and production delays (Apple Inc., 2020). Currency fluctuations also play a crucial role. As a multinational company, Apple generates revenues in different currencies and incurs costs in different currencies. The strengthening of the US dollar could hurt Apple's international sales. In its 2020 annual report, Apple noted that a 1% change in exchange rates would impact its revenue by approximately $1 billion (Apple Inc., 2020). Additionally, economic growth in emerging markets presents both opportunities and challenges. Countries like India and Brazil offer vast growth potential due to increasing urbanization and a burgeoning middle class. However, economic instability and high import duties in these regions can hinder market penetration and profitability. Social Factors Social factors concern the cultural trends, demographics, and consumer behavior that influence Apple's market. The increasing reliance on technology and the Internet has driven demand for Apple products. The global digital population has reached 4.66 billion, 2020)..