Focusing on compliance is vital for operating successfully in various regions around the globe. China, India, and the United States remain the largest markets for smartphones with the highest number of users. However, its share in the industry is currently minimal. While there was a sharp increase in the number of people sticking to their smartphones watching Netflix or engaging on social media, the smartphone industry also experienced less decline in demand as compared to several others like the automobile industry and the aviation industry. It was also evident in the Huawei ban that governments are now highly aggressive in terms of their, control of technology firms whether domestic or foreign. Pestel Analysis of Mobile Phone Industry Political Mobile phones have now become a tool with which political parties can directly target voters. Apple, Amazon, Google, and Facebook are also facing antitrust probes. 5%), France(0. Google has also primarily relied on technological innovation to differentiate its Pixel smartphone from the other leading brands in the market. Executive Summary 2. 25%) and Austria(0. PESTLE Analysis for the Banking Industry. Investing in sustainability offers several benefits, including reduced operational costs as well as a better social image. The smartphone industry relies mainly on technology for growth. Industrywide the impact of businesses on the environment and community has become a significant concern. According to. China is a leading market for smartphones. The global smartphone industry generated around $522 billion in revenues in 2018, despite a slight decline in overall demand. The company is also making big strides in AI technology, with its AI assistant being shortlisted for the SAIL award. the 21st century. PESTEL analysis provides great detail about operating challenges Myer Holdings Limited will face in prevalent macro environment other than competitive forces. Course Hero is not sponsored or endorsed by any college or university. By the end of 2011 the United Kingdom mobile phone market value is estimated to gain a raise of 29.1% since 2006 valuing … Apart from manufacturing and sales, the role of digital technology in other areas including marketing and promotions has grown a lot. A large number of emerging concerns in the last decade have made governments around the world acquire an aggressive position concerning tech regulation. PESTEL ANALYSIS OF SMARTPHONE INDUSTRY There are several factors driving demand in the smartphone industry including changing consumer lifestyles, technological innovation and the proliferation of internet-based services that can be accessed easily through smart devices. A large number of large-screen smartphones are now available in the market, which people use to visit social media sites as well as for gaming and other forms of entertainment like streaming videos. Technological factors play a central role in the growth of the smartphone industry. Order now. Smartphone Analysis 1. Want to read all 2 pages? Political changes like higher tariffs can affect their supply chains and, Rukmini Devi Institute Of Advanced Studies, Lists of countries by international rankings. Global Smartphone Market 4. This new gimmick is called “m-campaigning” […] Order now. It is why the smartphone companies have dedicated compliance teams that focus upon complying with local laws in the areas where the business operates as well as international laws that influence the firm’s business. Apple has spent around $12.1 billion during the first three quarters of 2019 on research and development, which is more than $1.6 billion compared to its R&D expenses during the same period last year. Smartphone industry pestel analysis September 3, 2020 November 18, 2019 by Abhijeet Pratap A Pestel analysis of the smartphone industry The global smartphone industry generated around $522 billion in revenues in 2018, despite … PESTEL analysis is critical to understand the external threats & opportunities arising because of the macro environment developments. In the smartphone industry as well, the level of regulation and political control are growing higher. There are several factors driving demand in the smartphone industry including changing consumer lifestyles, technological innovation, and the proliferation of internet-based services that can be accessed easily through smart devices. Sociocultural factors are now a key consideration in the area of business. Its line of Galaxy smartphones is one of the main competitors of the iPhone. This report will critically analyse the external environment of the mobile phone operators industry with the application of appropriate strategy tools including PESTEL and Michael Porter’s five forces models. This PESTLE analysis highlights key factors affecting the banking industry… This preview shows page 1 - 2 out of 4 pages. In the case of Huawei, the imposition of ban resulted in a swift decline in smartphone sales. In the smartphone industry, as well, the level of regulation and political control are growing higher. Consumer privacy, as, well as data security, are some of the leading concerns attracting the highest attention from government, agencies. On the basis of PESTLE analysis, Apple should be able to thrive in electronic device industry in the next five years in spite of the challenges because it demonstrates an impressive ability to adopt to a challenging environment. This article performs Samsung’s Internal and External Stakeholders analysis within the smartphone industry. It is a good sign for the economy since it boosts consumer confidence. However, the growing use of smartphones has also taken a form of addiction among teens and young people. Currently, rapid transformation is taking place and competition to control the lucrative market has in… The government forms rules and regulations for the IT industry and make the policies to introduce the IT industry in different departments of the government. Government control and oversight of technology firms, including smartphone brands, grew due to several factors. But it’s subservient to many factors, particularly to the government and the economy. In the second quarter of 2019, Apple, Samsung, and LG held the largest market shares in the US. How Subway uses social media for attracting and engaging customers. It is also necessary for the government to adopt policies for the use of software and social media and keep it on the right tr… Smartphone analysis 1. How To Market Your Small Business Successfully, What You Need To Know About Marketing for Your New Business. The supply chains of companies like Apple and Samsung are spread over several countries throughout the globe. However, demand could slow down or become static since economic performance in China is slowing. For people that are not familiar with PESTEL, it is an acronym for Political, Economic, Social, Technological, Environmental and Legal factors. These figures can be used to highlight countries and regions where economic growth is strong. Apple’s sales, on the other hand, grew stronger following the release of the iPhone 11. The tool I am going to use to analyse the business environment in Nigeria is PESTEL Analysis. Political environment- It consists of laws, government urgencies, … the launch of 5G devices and services as well as strengthening demand in emerging economies like India, Indonesia and Russia could again drive faster growth in the smartphone industry in 2020. PESTLEanalysis.com is an educational website collecting all the information and resources related not only to PESTLE but also SWOT, STEEPLE and other analysis … Overall, while focusing on sustainability helps build a stronger reputation, it also helps strengthen a firm’s competitive advantage by reducing operational costs and improving its social image. The condition of the global economy also has a direct impact on the sales of smartphones and revenue of brands like Huawei, Samsung, and Apple. Strong economic conditions in key markets mean stronger demand and higher sales. We will further discuss the purpose of this market analysis in the next section. In several cases, high smartphone use has been associated with psychological harm. However, the pandemic has also grown people’s dependence on digital technology and their smartphones. You've reached the end of your free preview. Leading brands like Apple, Samsung, and Huawei invest a lot each year in research and development to grow the popularity of their existing models and bring new ones with improved features. Likewise, it also aims to identify the factors that are more … In many cases, young people do not even know when to put their cellphones away. PESTEL analysis provides great detail about operating challenges T-Mobile US, Inc. will face in prevalent macro environment other than competitive forces. The role of political factors in the context of international business has become increasingly significant in the 21st century. It is why companies are now growing conscious of their environmental impact. The number of smartphone users in 2019 in the US was above 260 million, according to Statista. In this rapidly emerging industry, more and more companies are trying to get a piece of the smartphone pie by capturing a larger market share … They launched a couple of flagship smartphones … US is also facing similar troubles. Analysis of European Smartphone Market.docx, Institute of Management Studies, Devi Ahilya University, Hazardous Waste Management Market report.docx, 2013, Innovation and Upgrading in GPNs.pdf, Institute of Management Studies, Devi Ahilya University • FINANCE 1234, Institute of Management Studies, Devi Ahilya University • COSTING AN 1, Devi Ahilya Vishwavidyalaya • MANAGEMENT CM1, Janki Devi Memorial College • MANA OPERATIONS. The political situation in any country can affect the business of IT industry. About Us; How It Works; Pricing; Samples; Contact Us; WhatsApp: +1 917-985-7521. If the economic situation in a market is strong, it will result in higher employment and therefore higher consumer confidence which in turn results in higher sales of products and services. For smartphone companies, such political, and regulatory issues mean reduced sales and loss of revenue. Abhijeet has been blogging on educational topics and business research since 2016. The banking industry affects all countries. In India, it is the largest manufacturer, with 27.3% market share. Consumers are at the center of the picture, and knowing their needs and habits allows firms to create the models that have a stronger appeal for customers. The report investigates the computing capabilities of smartphones, and their ability to support several multimedia applications. Companies are investing a lot more than ever in research and development to release new models that are more attractive and loaded with features. The smartphone industry is experiencing intense competition, and maintaining market share requires more focus on technology than ever. It makes the new iPhone highly attractive for gamers and professionals. PEST Framework Not just Huawei but Apple and other technology firms were also affected by the higher tariffs which led to higher operational costs for businesses operating in China. Introduction 3. People with smartphones can now receive video advertisements and messages via the internet. The main source of competitive advantage for market-leading brands like Apple, Huawei, Samsung, and LG. The trade war between the US, and China is affecting nearly all the large technology firms in the US and China. The overall sales of items like smartphones still depend to a large extent on the economic situation in a region. Our Services. Governments around the world have made stricter laws related to the environment, and businesses need to focus on sustainability to remain compliant with these laws. The company went public in 2018 with a … According to the Economic Intelligence Unit (2012), 83% of Americans who own a smartphone … In 2018, while the demand for smartphones … 2%). Patent laws and some other laws also affect smartphone firms. Consumer privacy, as well as data security, are some of the leading concerns attracting the greatest attention from government agencies. The result was that it gained market share in the United States market. The supply chains of companies like Apple and Samsung are spread over several countries, throughout the globe. By 2018, the company had achieved 100% use of renewable energy in its facilities globally. In order to make a complete analysis of the environment of how the smartphone industry operates we need to evaluate those forces that work in it as well as seeing how the forces share its competitive environment. Samsung also focuses heavily on technological innovation to grow sales and market share. In a tax-related case in the EU, Apple paid around $15 billion. In 2018, while the demand for smartphones declined by almost 3% compared to the previous year, sales were still strong at 1.44 billion units. According to the industry research website Gartner, the sales of smartphones to end users declined by more than 20% during the first quarter of 2020. In the case of Huawei, the imposition of the ban resulted in a swift decline in smartphone sales. Apple recently released iPhone 11 and iPhone 11 Pro which come loaded with the A13 Bionic chip. Smartphones have ushered in a new generation of modern communication. They are also about to change the way we use computers. Strengthening demand in the rising economies is expected to drive the smartphone industry towards faster growth in 2020. Google has entered the smartphone industry with its Pixel smartphone. The United Kingdom plays a very important role in the European mobile market as it accounts for a total of 12.9% market value (Datamonitor 2008). Moreover, the environmental impact of businesses also has a direct effect on their image in the society. Apple is a technology company engaged in the design, manufacture and marketing of smartphones, tablets and personal computers. Changes in macro environment forces can impact the Porter Five Forces & industry attractiveness. Smartphone Industry Analysis: Samsung Galaxy S Series Presented by : Pritom Gogoi 2. The smartphone industry will suffer in Europe due to these figures and sales growth will be slowed significantly. People with smartphones can now receive video advertisements and messages via the internet. However, there are chances of the ban being relaxed in the near future. in English literature from BRABU and an MBA from the Asia-Pacific Institute of Management, New Delhi. Leading smartphone brands like Apple and Samsung place a heavy focus on CSR and sustainability to make their products free from risks for the users. The role of political factors in the context of international business has become increasingly significant in. Moreover, the role of digital technology and smartphones in the lives of people has kept growing. Google has entered the smartphone industry with its Pixel smartphone. It was also evident in the Huawei ban that governments are now highly aggressive in terms of their control of technology firms whether domestic or foreign. The GDP growth rate of China during the third quarter of 2019 was the slowest since the first quarter of 1992. Thus significantly impacting the ability of Byju's App to build … A Pestel analysis of the smartphone industry. Understand the broad macro-environment of Xiaomi and the Chinese smartphone industry in terms of political, economic, social, technological, environmental and legal factors (PESTEL/PEST/STEEPLE). With time, competition among the leading players has grown a lot. The Huawei ban and the China-US trade wars are also a sign that governments and regulatory agencies are going to play a more significant role in the area of international business. Government agencies have also tightened the regulations related to the environment. A high focus on research and development is essential for smartphone makers so that they can strengthen their competitive advantage and retain their market share. Pest Analysis On Smartphone Industry Smartphone Industry Analysis Team 5 University of North Alabama MG 498-I01 Dr. Dennis Balch Team 5: Bradi Reader – Document Manager/Formatting and Editing Bailey Claunch – Industry Overview Kylie Corum – PESTEL Factors Kyle Stephenson – Porter’s Five Forces Matthew Vest – … Smartphones have become a part of everyday life for many, and their relevance is only growing as prices drop and access to new technology spreads. The forces that are taken into consideration normally are: the technology available technology & its … The situation of the world economy or significant local economies affects both demand and sales. Smartphone manufacturers 2 Economic environment involves factors that affect the purchasing power of the consumers. In the smartphone industry, social trends are also playing a pivotal role in driving demand. and Google have also faced significant problems in overseas markets caused mainly by regulatory issues. Smart Phones (Handset) Market in India Mona Swarnakar Date: 28/05/2013 2. contact: support@notesmatic.com, admin@notesmatic.com, Moreover, smartphone makers are loading them with features so that they can seamlessly integrate into people’s lifestyles. It can also help to grow the IT industry in the private sector. It is shown in tables 2,3 and 4 (Appendices) that there is strong economic growth … Several more tech businesses like Facebook. The chosen market for this market analysis example is the smartphone industry. In China, the number of smartphone users in 2019 was around 882 million. In this way, social factors are of core importance in the smartphone industry, and studying them helps businesses produce more appealing models and grow sales. Several more tech businesses like Facebook and Google have also faced significant problems in overseas markets caused mainly by regulatory issues. There are millions of apps on Google Playstore. 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