Executive Summary:

This report's objective is to provide a more thorough grasp of the marketing environment
that Apple’s operates in, culminating in a list of strategic goals for the upcoming fiscal
year. The report's first portion comprises a PESTLE study that was conducted to acquire
further understanding of the macroenvironment and the factors influencing Apple’s
overall operations.
The next part presents a competitive study. The results show that Apple operates in a
highly competitive market, with its main rivals, Samsung, and Apple, positioned near the
brand. After that, a SWOT analysis was carried out using the data gathered during the
audit. The SWOT analysis results have been applied to propose Apple's strategic goals for
the upcoming year.

1.0 Introduction:
The next marketing audit will focus on smartphones and be carried out on the Technology
brand in China technology sector. Theories, models, and frameworks will be used in the
report to give readers a clear understanding of the many elements that affect or motivate
Apple’s activities.
2.0 Company Background:
2.1 Mission Statement:
Since its founding in 1976, Apple has been a model of design, and innovation in the
technology industry. Its mission statements have helped to clarify its plans for success in
the international market and have inspired staff members to support and enhance the
company's competitive edge. Apple utilizes its business strategies, intense growth plans,
and business declarations to combat competition from rivals like PayPal, Samsung,
Google, IBM, Dell, Lenovo, and Lenovo. Under the direction of both Tim Cook and
Steve Jobs, these claims have continuously evolved over time to reflect any
organizational changes. These days, their themes encompass the variety of strategic
approaches needed to succeed in a variety of industries, including semiconductors,
consumer electronics, cloud computing services, and computer technology (Daniel,2023).
However, the three main pillars of Apple's purpose are superior customer experience,
cutting-edge goods, and high-caliber service which the company's mission statement aims
to emulate:
“To bring the best user experience to customers through innovative hardware, software,
and services.” (Apple Inc,2023)
2.2 Market Analysis:
Apple sells its own products as well as those of third parties directly to consumers
through several physical locations and online (Apple Inc., 2015). In order to sell their
goods, they also use indirect third-party distribution channels, such as wholesalers,
retailers, and cellular network providers (Apple Inc., 2015). 28% of Apple Inc.'s total net
assets in 2014 came from net sales made through direct sales channels, while 72% came
from indirect distribution channels (Apple Inc., 2015). Technology devices, such as
computers, tablets, and smartphones, have a sizable market in the US. As per Statista, the
consumer electronics category is anticipated to generate $426 billion in total revenue by
2021 (Statista 2021). Due to customers' rising reliance on technology in their everyday
lives, the market has been expanding significantly.
It is important to note that Apple leads the Chinese market with a 23% market share,
followed by Vivo in second place with a 19% market share. However, Apple's
market share has recently decreased. Google, LG, and Motorola are its other three main
national rivals. With a 52.05% market share, Apple leads the market in China; its main
rivals are Google, Xiaomi, Samsung, Huawei, Motorola, and Xiaomi. In this market, it
much outperforms the competitors (M. Rahman,2023)
3.0 Macroanalysis
3.1 Political Factors:
Geopolitical tensions between China and the US, government restrictions, and intellectual
property protection are some of the political variables impacting Apple in China. Apple
has had to deal with a challenging regulatory landscape in China, which includes
stringent regulations governing censorship, worries about data privacy, and the nation's
desire for technological independence (Thomas Busch,2023).
The Chinese government has expanded its ban on iPhones and Apple devices, which
would include state-owned businesses and local government employees. China’s moves
are thought to be a reaction to its growing discomfort about reliance on US technology.
Beijing's overarching goal of lowering dependency on electronic items manufactured
abroad is reflected in the ban on iPhones and other Apple products (Sneha
Swaminathan,2023). The stock price of Apple was significantly impacted by the
announcement of the wider iPhone ban. Over the course of two days, Apple shares fell
more than 6%, albeit on the third day, they slightly recovered. China accounts for over a
fifth of Apple's revenue, making it a key market. Analysts such as Erik Woodring predict
that Apple's sales will only be impacted by around 4% of these losses.
3.2 Economic Factors:
An important factor in Apple's operations in China is labor expenses. Due to the
abundance of inexpensive labor provided by the nation's enormous population, Apple has
been able to maintain relatively low production costs. However, Apple has the issue of
maintaining economical manufacturing while guaranteeing worker welfare as labor costs
grow in China because of rising salaries and higher living conditions (Ejet sourcing,2023)
Another important element for Apple Inc. is the rise of the Chinese economy. China's
economy has grown quickly in the last several decades, giving rise to a sizable middle
class with rising purchasing power. The demand for Apple products has been significantly
boosted by this. China offers Apple a profitable market in which to sell its goods and
make significant profits if its economic development continues. Furthermore, Apple's
worldwide operations and supply chain may be impacted by China's trade policies and
trade conflicts with other nations, especially the United States. Apple's production
processes may be disrupted, and component costs raised by tariffs and trade restrictions
imposed by either nation (Arendse Huld and Giulia Interesse, 2023)

(Source: Statista,2021)
In conclusion, major economic factors influencing Apple Inc. in China are labor costs,
economic growth, and government policies. The production expenses, sales potential, and
operational problems of the organization in this crucial market are shaped by these
elements. For Apple Inc. to maintain its success in China, it will be essential to be aware
of these economic considerations and modify its strategy as necessary (Forbes,2023)
3.3 Social Factors:
More Chinese customers are finding themselves with more discretionary cash as the
country's economy expands. This has expanded the market for Apple's goods and aided in
the growth of the business in the nation. Furthermore, brand image and prestige are
highly valued by Chinese customers. Chinese customers have taken to Apple's reputation
as a high-end and inventive brand, especially the younger generation, who look to buy
Apple products as a mark of sophistication and social standing. In China, Apple's market
share and sales have increased due to this societal influence. It's crucial to remember,
meanwhile, that Chinese customers are becoming increasingly concerned about the
perception of Western companies. Nationalist sentiment and instances of racism or
cultural insensitivity by Western businesses have been the main causes of this reaction
(Mc Kinsey,2021)

3.4 Technological Factors:

For Apple, China's quickly developing IT sector has proven to be both advantageous and
challenging. Apple can access a large talent pool and the knowledge and creativity of the
locals thanks to the country's flourishing digital environment. As a result, China now
boasts many research and development centers. Important goods like the iPhone and iPad
were developed in large part thanks to these centers, which helped to better design them
for the Chinese market (Daisuke Wakabayashi,2022). However, Apple also faces
difficulties in China's technical landscape. Apple faces intense competition from local
tech giants like Xiaomi and Huawei, which forces the company to continuously develop
and offer distinctive features to differentiate itself in the market. Additionally, Apple
frequently needs to modify its technology to comply with local norms due to China's
intricate regulatory environment. For instance, Apple could need to alter its goods and
services to adhere to stringent content and encryption laws enforced by the Chinese
government (Creative Works,2020).
3.5 Legislative Factors:
Strict cybersecurity rules have been enacted in China, requiring international businesses
to keep their data domestically. As a result, Apple was compelled to collaborate with
Chinese cloud service providers to abide by the rules and guarantee the security of the
data belonging to its users. Additionally, Apple has had difficulties with China's patent
regulations and intellectual property rights. Apple has been concerned about the nation's
judicial system since it has been the target of several lawsuits alleging patent
infringement from regional rivals (John Naughton,2017)
Additionally, Apple's operations have been hampered by China's labor restrictions. Strong
labor laws in the nation mandate that businesses give their workers a specific degree of
perks and protection. The government and labor rights organizations have been more
interested in Apple because of the company's labor policies in China, which have drawn
criticism (Wayne Ma,2020)
3.6 Environmental Factors:
One of the biggest locations to produce electronics, including Apple goods, is reputedly
China. China's manufacturing industry has frequently faced criticism due to its excessive
energy usage and carbon emissions. Apple has been collaborating extensively with its
suppliers to lower greenhouse gas emissions and increase energy efficiency to solve this
problem (LAULY LI,2021) The firm has set goals to convert its supply chain to 100%
renewable energy, one of which is to make it easier for its suppliers to install solar panels
at their locations. Moreover, managing e-waste is a big environmental problem. Due to
technological improvements, Apple goods have a very limited lifespan; thus, it is crucial
to properly dispose of and recycle electronic trash. In China, Apple has launched several
recycling projects, including partnerships with outside recycling businesses and recycling
campaigns at its retail locations. The business has also taken steps to guarantee that
dangerous materials are appropriately handled both during product manufacturing and
disposal (Varenyam Achel,2020)
4.0 Microanalysis
4.1 The company:
In 2021, the company's net income was $94 billion, up from $1 billion in 2005. Over the
past ten years, the firm has seen a consistent increase in sales. Compared to $13 billion in
2005, Apple's revenue in 2021 was $365 billion (Statista, 2022). Its balance statement
shows its financial health in addition to sales and net income. Apple has $351 billion in
total assets, $287 billion in total liabilities, and $63 billion in total shareholders' equity as
of the end of 2021 (Statista, 2022). The company's financial strength is thus quite solid.
Apple is a company that provides a wide range of computers and consumer gadgets to
meet the demands of various clients.
Apple sells the following products: Mac, iTunes, Apple Watch, iPod, iPad, iPhone, and
Apple Store. The success of the company is fueled by innovation, and Apple consistently
produces products that are one step ahead of those of its rivals.
Source: (Statista,2022)
4.2 Suppliers:
Apple has a huge supply base, giving it significant negotiating leverage. The company's
suppliers are dispersed around the globe, including South Africa, India, and China. Apple
believes in enabling its suppliers through the implementation of training and capacity
building initiatives. Gaining competitive advantages and managing the supply chain
effectively are made possible by a company's strong and positive relationships with its
suppliers. Apple created a stringent code of conduct that its suppliers are required to
abide by. Apple conducts many audits throughout the year and at multiple locations to
make sure all vendors abide by the code of conduct. Apple makes sure that all its
components are of the highest caliber (Krishna Kumar,2023)

4.3 Human Resource:

Apple is aware that efficient human resource management is essential to any
organization's success. Every employee at Apple has a defined set of duties; they are
aware of their obligations and provide services in accordance with Apple's standards.
Every manager shows decency and respect to their staff members. Supervisors mentor
their subordinates and offer various forms of assistance and education to promote client
contentment and the expansion of the company. Additionally, Apple makes sure that its
staff members have plenty of opportunities for development and education. Senior Apple
employees are open to discussing difficulties and concerns with one another.
“Apple is a technology company, but we never forget that the devices we make are
imagined by human minds, built by human hands, and are meant to improve human
lives.” -Tim Cook, CEO

4.4 Customers:

Source: Above Avalon,2019

Calculating the overall number of Apple users is a rather simple task. Apple said in
January of this year that there were over 900 million iPhones in use worldwide. Apple's
announcement suggested that there were about 900 million iPhone users, as iPhones are
not usually shared. Given that there are probably already more than 925 million iPhones
in use worldwide, the 900 million user count includes some wiggle space for the
occasional user who uses more than one iPhone. However, the number of users seen in
the above chart is one indicator that Apple has been successful in keeping consumers and
building a trustworthy brand.
4.5 Publics:
Apple uses influencer marketing to reach a wider audience and establish a connection
with niche markets. To support and advertise its products, the firm works with social
media and Facebook influencers, industry experts, and celebrities. With the use of this
tactic, Apple can capitalize on the influencer's current following and use their reputation
to win over customers' attention and confidence (Kevin Urrutia,2023)

5.0 Competitive analysis:

Competitive Analysis of Apple Inc and Samsung
Company Samsung Strength/ Apple Strength/Weakness
Weakness
Mission “We will devote our Strength “Bringing the best Strength
statement human resources and user experience to
technology to create customers through
superior products and innovative hardware,
services, thereby software, and
contributing to a services,”
better global society.”
Product + LCD and LED Strength + Store Strength
Offerings panels + Mac
+Mobile Phones + iPad
+Memory Chips + iPhone
+NAND Flash + Watch
+Solid-state drives + Vision
+Digital cinemas + AirPods
screen + TV & Home.
+Laptop
Price range 400-500$ Strength 600$-900$ Weakness
Marketing +Best Buy Strength +Best Buy Strength
Intermediaries +Amazon +Target
+Walmart +Apple Retail Store
+Shopee +Walmart
+Lazada +Myer
Market share 24,22%(BMC,2023) Strength 29,64%(Oberlo,2023) Strength
Key + Samsung's target Weakness + Middle-class and Strength
demographic market consists of upper-class
groups tech-savvy consumers who are
individuals between willing to spend more
the ages of 15 and 45. for items that offer
They heavily rely on exceptional user
TV and digital media experiences make up
to fuel their lifestyles, Apple's target
and they particularly market. This
like local TV shows indicates that these
and the aspirational consumers are more
lives of celebrities affluent and are
(MMA,2023) prepared to shell out
more cash for pricey
goods like those sold
by Apple
(Simplilearn,2023)
Brand Several brand Strength The mental link, Strength
Association connotations have emotions, and
been associated with reactions that arise
Samsung. Durability, when you consider a
 style, ease of use, certain business, its
innovation, quality, goods, services, and
smartness, modernity, culture are known as
productivity, and brand association.
efficiency, sleek,
seductive, and
elegance are some of
its utilitarian brand
connections.

5.1 Perceptional Mapping:

Source: Academia (2023)

5.2 Analysis:
Apple's positioning mostly relates to the brand and the marketing initiatives used to
advance and publicize the brand. Apple's brand is communicated through its product
communication, brand identity, and aspects. The Apple market is the outcome of
consumer experiences that compel consumers' hearts and minds (Brendon,2023). The
brand is positioned on the ideas of creativity, innovation, and design. These ideas support
the promotion of the goods, advertisements, and other initiatives. As a result, Apple
implements, connects with, and maintains consistency and loyalty with its features for
users. Apple's positioning approach is one of high quality and high price, and it primarily
concentrates on the brand identification through premium pricing.
6.0 SWOT Analysis:
 Source: WordPress, Apple Inc’s Encyclopedia
7.0 Strategic Priorities:
Apple is renowned for its dedication to ongoing development and innovation. The
company's primary objective is to create innovative technological innovations for its
goods and services. This involves developing state-of-the-art software and technology
that transforms user interfaces. Apple is dedicated to reducing its effect on the
environment and advancing sustainability. The corporation wants to employ renewable
energy in its supply chain, operations, and goods while also lowering greenhouse gas
emissions and conserving resources (Thomas Day,2023)

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