Apple has been facing certain political factors that have affected its performance in the market. The company has sued several phone makers among them HTC manufacturers to the International Trade Commission (Reardon, 2010). Apple has sued the companies over patent issues claiming that the manufacturers were infringing on the company’s patent rights. The company has also been engaged in serious political battles with Nokia which have resulted into legal suits. Nokia has sued the company against ten patent rights that it relates to its own related wireless handsets.
The political environment has challenged the company’s performance as Nokia targets to get a royalty fee from the sales of Apple’s products (Ogg, 2009). The company has faced several economic risks that have affected its business especially in terms of the company’s sales. These risks include tight credit availability, declines in the level of incomes for the consumers which have led to postponed spending. This has negatively affected the demand of the company’s products and services (McLean, n. d).
The dollar has also been strengthening and this has impacted the prices of its goods as the company normally raises its prices when dealing in the markets outside the United States. The prices of its goods and services are normally quoted in the U. S dollar. The social needs of the consumers in the market have affected the sales of the company’s product. In Japan for example the company’s sales have not been as high as the rest of the other countries. The iphone, one of the company’s products is considered popular elsewhere but not in Japan (Chen, 2009).
The company has faced cultural opposition in the Japanese market as well as its inability to satisfy the needs of the consumers in Japan. The consumers prefer handsets that have camera and multi text message as they are extremely into photos and video. The product did not have these features. Apple has undertaken several technological changes that have enabled it to gain a competitive edge over its competitors. The company has introduced products such as the iphone which have led to a breakthrough in the internet and communication industry (Apple, 2007).
The company has also been able to usher and pioneer mobile applications that have also boosted the sales of the iphone as well as boosting software development in the market. The company continues to lead in the market spearheading various technologies in the digital world through its revolutionary products and services. Apple Company has faced some challenges in the market because of its lack of environmental friendly operations within the company (Apple, n. d). Several environmental organizations have criticized the company for not removing toxic elements and chemicals in its products.
The organizations claim that the company has not been aggressively pushing for the recycling of its products once they became old. The company has however been developing measures that will help in improving the environment by removing the toxic chemicals in its products among them lead, cadmium and mercury. The legal issues that have affected the company and that have also impacted its performance include the legal suits the company has filed to the United States Copyright Office and the Library of Congress to criminalize jail breaking (Keizer, 2010).
The company has been facing challenges in the market with unauthorized applications being installed in its smart phone. Some of the users have been modifying the smart phone, a process the company is referring to as jail breaking. The modifications are done to the phone’s operating system rendering it interoperable and hence other applications which are not authorized by the company can be installed in the smart phone. This has resulted in the reduction of revenue for the company through the applications installed without authorization. Bibliography Apple. (n. d). A Greener Apple.
Retrieved August 18, 2010, from Apple: http://www. apple. com/hotnews/agreenerapple/ Apple. (2007, January 9). Apple Reinvents the Phone with iPhone. Retrieved August 18, 2010, from Apple: http://www. apple. com/pr/library/2007/01/09iphone. html Chen, B. X. (2009, February 26). Why the Japanese Hate the iPhone. Retrieved August 18, 2010, from WIRED: http://www. wired. com/gadgetlab/2009/02/why-the-iphone/ Keizer, G. (2010, July 26). Apple loses bid to criminalize iPhone jailbreaking. Retrieved August 18, 2010, from Computer World: http://www. computerworld. com/s/article/9179694/Apple_loses_bid_to_criminalize_iPhone_jailbreaking
McLean, P. (n. d). Apple’s 10K outlines risks from economy, third party developers. Retrieved August 18, 2010, from Apple Insider: http://www. appleinsider. com/articles/08/11/05/apples_10k_outlines_risks_from_economy_third_party_developers. html Ogg, E. (2009, October 22). Nokia sues Apple for patent infringement. Retrieved October 22, 2010, from CNET News: http://news. cnet. com/8301-31021_3-10381354-260. html Reardon, M. (2010, March 2). Apple sues HTC over iPhone patents. Retrieved August 18, 2010, from CNET News: http://news. cnet. com/8301-1035_3-10462116-94. html