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1 PESTEL and Monopoly Analysis of the Apple Inc. In India Introduction Monopoly is usually defined by the single handed domination in any sphere. In terms of expanding business, the monopoly is understood as consistent performance based on single product or the series of products of the company that are consumer’s favorite. It becomes like traditional favoritism for the people to wait and get the product of desired configuration of the same company whose older version they were using for a long time. In the context of Apple Inc. and its I Phone market in India, its monopoly has been thrived by what is called a much opened market in Indian context. In fact, the globalization of telecommunication industry has presented threats to gain the monopoly in Indian market for the company and it can be understood by the following analysis of the opportunities and threats for the company. The Monopoly Power and Indian Market for I Phone Apple At first, it is significant to note the current state of Indian market is going through diversified state of electronic products. There are multinational companies like Samsung and others that have entered into fully fledged business for Indian consumers with their refined performance of the mobile phones. Moreover, not only the international firms but also the local developers have also plunged into direct competition that has changed the scenario for Apple. The company has stick to its pricing policies i.e. the quality and pricing of Apple has been fixed in terms of giving the best experience for its consumers and no doubt that within the past decade, the market for the users of I phone has increased by a moderate growth. However, the growth has been affected by the point that there are more than five alternatives are available in the much better price range than Apple offers to its users. As per the observation of the research, any monopolist would prefer avoiding the state of competition in the

2 PESTEL and Monopoly Analysis of the Apple Inc. In India open market because it would affect its direct strategy of sales, “ The monopolist may fear potential competi tors. The monopolist at present may not have any competitors; but, if he consistently charges high prices for his product, the new competitors may emerge to throw a challenge and ultimately may succeed in break his monopoly position. For this reason he is often afraid to charge high price for his product although he is always left with this option.” (Nipun S, 2017) this is the first stand that can be effective in the modern context of business for I Phone; the existence of potential competitors like Samsung affects the sales of the company. Secondly, the same range quality and performance of the products is somehow in the direct contest with the available version of the company. For example, Apple launched its I phone 8 and X in the first quarter of 2018, setting its price at such a hike that it became available for the premium consumers. The problems were that the users wanted to have that version but the pricing as an issue that affected the choice of the consumers. In terms of features, Apple produces the most innovative state of features with every new version of the I phone but the pricing becomes an issue for the mid range consumers especially in the context of India where the mid range mobile phone users are the most in the market. Further, Apple Inc. cannot monopolize Indian market unless the feature and price are coordinated well i.e. there are other alternative companies that provide the same feature and almost similar configuration in their phones which allows the users to have a phone that is quite in range and is available with all that which is coming in I phone. For example, during the launch of the I phone X, what attracted people towards the latest version as the smart eye gesture; the new version as able to detect the eye contact even in the dark and it is able to unlock itself with that one look because of the new technology added to it. apple has patented this feature and it has actually made the phone look quite handy but with a price of six figures—it actually affected the

3 PESTEL and Monopoly Analysis of the Apple Inc. In India marketing storey of the company in India. The initial bookings of the phone were not very much promising and they were quite less than the previous versions of the phone as well. With the existing competition of the other companies, it will be hard for Apple to have monopoly power in the market unless it drags down the price of I phone in the range where all other alternatives are available. PESTEL Analysis of I Phone As per the PESTEL analysis of the Apple Inc in India, the political environment sis supportive to the foreign direct investment made through plantations of the local manufacturing units. It is quite in favor of the companies like Apple. The recent visit of Indian Prime Minister to America opened up new horizons of business for the company in Indian market form political and administrative point of view and now, Apple has agreed to manufacture I phone in India; an assembling plant will be established in the coming year in Bangalore which will assist the company to reduce the custom duties over the phone. Currently, the process of distribution of the I phone is made through the advance booking and shipping of the phone to the India that has been assembled in China. So, as far as the political situations are concerned, they are sportive and quite helpful in terms of expanding the business in Indian market in the coming years. The economical analysis of the company’s future in India especially the labor cost can be a concern until the company establishes the local manufacturing unit. Currently, the costs over final asset of the product are seen with what Chinese labor us done over assembling the phone. Once given to the products in other nation’s context, the companies have to bear the charges that the local companies provide in terms of rendering the parts and services; currently China is providing the same services to Apple and the company finally fixes the costs for the end product

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4 PESTEL and Monopoly Analysis of the Apple Inc. In India which is inclusive of all taxes and services that Apple has either taken from outside agencies or it has used internally. The issue is that the company ahs to spend a lot over its research and development of the new version of the phone—people always expect that every bew version of I phone will appear in the market with a new feature which will be the best in its segment. The same cost and expenses that the company makes over the phone development is charged from the consumers later. It is the common practice that Apple follows too, however, the reduction in the labor cost functions as the best tool to have the best outputs in terms of having business with the consumers. In other words, the economical profits will be for both, if company plants a manufacturing unit in Indian premises. Apple has always been a committed company in terms of sustaining the social values of its consumers across globe. The company has actually enveloped a strong base of its consumers who always stick to the basic values of the company. The social marketing of the I phone in India is related to the pricing of the end product; the traditional users would find it preferable to have the new version but giving a hike of more that 30, 000 INR would be something intriguing the mind of a new user. The available version of I phone X is of that range which might not be in the range of a new consumer who does not belong to the premium community. The branding of Apple must come out from that those criteria of having premium users. As per technology and legal interventions, the company has always taken care of the best technology that has to be provided to the users. The company is committed to serve and offer the best technique available so far to make the user feel I Phone X as the best device in hand so far. The legal interventions and legislations of TRAI, the authority that monitors the telecommunication matters in India promotes positively the direct investment and thus, the legal atmosphere is well in accordance and Apple adheres to the same as well.

5 PESTEL and Monopoly Analysis of the Apple Inc. In India Apple is always subjected to be an environmental friendly company i.e. the company has set its core values as per the parameters of the environment safety of the nation where it is doing the business and no negative incidents like the problems with the batteries or anything else has been reported so far with its versions and their consumers have not complained against the company in Indian context. Reference http://www.economicsdiscussion.net/monopoly/power/price-fixing-power-of-a-monopolist- 7-limitations-economics/25679

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