Apple SWOT Analysis, Apple Inc. is one of the most profitable corporations around the globe. It has been offering high-quality technology products as well as exceptional software services. Apple is located at Cupertino, California and was created by Steve Jobs. SWOT Analysis Of Apple can teach us a lot about Apple Company.
Did you have any idea?
In 2013 one of the first Apple computers was auctioned off at a price of over $671,400 at a German auction.
Apple introduced its first product , ‘the Apple 1 computer in 1976. Since the time, Apple has grown exponentially in terms of both products and services.
In the present one of the most popular products made by Apple is the iPhone. In financial year of 2020 iPhone revenue of $137 billion represent the majority ( 50%) of Apple’s total revenues of $274 billion.
Tim Cook is currently the CEO of the company.
Apple At A Glance – Apple SWOT Analysis
Company: Apple Inc.
Founders: Steve Jobs | Ronald Waybe | Steve Wozniak
Year of establishment: April 1,1976
CEO: Tim Cook
Headquarters: Cupertino, California, United States
Employees (Dec 2020): 1,47,000
Ticker Symbol: AAPL
Annual Revenue (Dec 2020): USD$274.51 Billion
Profit net income (Dec 2020): USD$57.41 Billion
Products & Services: Computers | Software | Phones | Watches | Tablets | Cloud Technology | Accessories | Music Platform |
Company Website: Apple
Competitors: Apple | Lenovo | Google | Samsung | Toshiba | Dell | Sony | HP | Acer |Netflix | Disney | Amazon | Chase | CitiBank | Youtube
Apple SWOT Analysis – SWOT Analysis Of Apple
SWOT Analysis Of Apple analyzes the brand based on its strengths weak points, weaknesses, opportunities, and threats. With Apple SWOT Analysis it is clear that the advantages and disadvantages are internal factors, while threats and opportunities are external elements. Here we are going to talk about Apple SWOT Analysis. Below Is The Detailed SWOT Analysis Of Apple.
Apple’s Strengths – Apple SWOT Analysis
1. Most valuable brand: Apple is placed #1 for the eighth consecutive time in the report of Interbrand and has the value of its brand that is 322 billion.
2. Globally Iconic: Apple is among the most trusted companies in the field of personalized high-tech computers and smart devices. Apple boasts millions of faithful customers who have a an increasing number of customers.
3. Top Technology: Apple is the one company to present several of the ingenious devices that have revolutionized the world (iPhones and iPads). Apple continues to create and design superior, more efficient technological devices.
4. Brand Of Choice: It’s not a big deal to know that Apple is a sought-after brand for corporate offices. Apple has a dedicated website for business that provides high technological solutions for each company’s requirements.
5. Proficient Research: Apple invests a lot of effort into its designs for products. It is a careful process of study that is followed by additional research is conducted to identify the needs of customers and expectations.
6. Sustainable Development made Possible by Liam: Liam can be described as an iPhone recycling robot that can break down and dissect an iPhone. It removes them all the way into one bolt. A majority of components of an iPhone are reusable.
Liam has been designed and engineered to create as many reused parts as feasible. These parts that are reused are separated and safely stored so they can be used in future manufacturing.
7. Services are expanding: Apple has expanded its service offerings for a number of years. For instance, around 19 percent of Apple’s annual revenues ($53 B of $274 billion in FY20) was derived from services that is the second-largest source of revenue to its revenue , after the iPhone (50 percent of its revenues).
Apple’s services include digital content stores, streaming services, iCloud, AppleCare etc. Additionally, Apple has introduced many new services for 2019 like Apple TV+ (launched in the month of November), Apple news+ and Apple Card(credit card services), Apple Arcade (game subscription).
Apple’s Weaknesses – Apple SWOT Analysis
1. High Priced Products: Apple’s products can be regarded as high-end because of their expensive costs. The prices are geared towards consumers with middle- and high-incomes. People with low incomes can’t be able to afford Apple products.
Because of their high-priced products Due to their high cost, only middle- or upper-class consumers can afford their products.
2. A limited amount of advertising and promotions: Apple has established their position by building loyal customers even with the smallest advertising budget. Apple marketing is heavily dependent on its famous and iconic retail stores.
Due to their popularity, Apple does not feel the need to spend excessive expenditure on advertising compared to other brands of the same size like P&G, Coca Cola and Samsung technology.
3. Involving in the area of non-competency: Apple is expanding rapidly into new offerings like streaming video content and game streaming, as well as a credit card, and more – all in competition with the major players like Netflix, Disney, Citi, Chase, PayPal, etc.
They could be entering regions where they do not have capabilities; recall the failings on Apple Maps.
4. Incompatibility With Other Software
When a buyer purchases an Apple product, they join into the Apple universe. Apple’s products are not compatible with different software or technologies, rendering them incompatible with different devices.
Customers must purchase only Apple applications or accessories to keep using the Apple products.
5. Allegations of Tracking: Users being tracked undermines confidence. Apple was accused of using tracker applications in its phones that revealed the precise position of users.
Although the most recent version of the Apple phones allows users the option to opt out of tracking but trust is hard to restore once it’s lost.
6. Unfair business practices: Apple is being investigated for business practices that violate the law following the receipt of payments for Google’s search engine its default engine in it’s Safari website browser. Collaboration between two giants creates difficult for competitors to penetrate and expand into the market of search engines.
Apple’s Opportunities – Apple SWOT Analysis
1. Consistent Customer Growth: Apple has been ruling the field of technology for many years and is still dominating the technology sector. They offer top-quality and innovative technology that provides an unbeatable customer service.
Their customers retention rates of 92 percent is amazing. Apple is always able to count on the internet’s power for future opportunities to acquire new customers and create new alliances.
2. Qualified Professionals: Apple’s researchers, developers and product specialists comprise an experienced group of experts with years of experience creating consumer-oriented products. With the growing of their staff, Apple can continuously build new possibilities.
3. Expansive Distribution Network: Apple Inc. has the chance to expand their distribution networks. At present, the distribution network Apple has is extremely limited and allows for only a small amount of expansion.
Apple could generate more sales and revenue if it concentrated on building a large distribution network. In addition, the company will profit from a well-planned marketing strategy and promotional efforts.
4. Lack of Green Technology: Apple is still to introduce products that were developed using green technology. Apple hasn’t yet taken part in developing environmentally sustainable technologies that is environmentally friendly.
5. Smart Wearable Technology: Smart wearable technology is set to be the dominant technology in the globe. according to Forbes the sales of smart wearable technology devices will triple in 2023. It will be a 27 billionor more market, with the sales of 233 million units.
Apple is poised to expand beyond Apple wearables like the watch as well as AirPodsinto various other wearable categories.
6. Utilize Artificial intelligence: To improve its profit margins and to maintain an established market position, Apple should utilize artificial intelligence. Recently, the company increased the scope of its AI portfolio.
In 2017, Apple purchased Regaind Regaind, the French AI startup, and DeskConnect which is which is an AI tool. The former acquisition allows Apple to add intelligent search into the app for photos for the iPhone and the second acquisition helps consumers organize features and apps by using a series of commands.
The company must focus on expanding it’s AI portfolio to ensure an advantage in the near future.
7. Expand Music Streaming Services: The growing population of young people and rapid growth of the economy in emerging economies provide huge potential for growth. Apple has already announced plans to extend its streaming services for music for 52 new markets across Africa as well as across the Middle East.
8. Deliver Self-Driving Software Technology: Autonomous vehicles are in high demand and vehicles is growing quickly. Apple has the experience and expertise to provide self-driving technology as opposed to fully-functional autonomous electric cars.
Apple has the chance to concentrate on developing self-driving software instead of developing an actual vehicle like Tesla is doing.
In an interview with Bloomberg interview Apple President Tim Cook declares:
” We’re focused upon autonomous system. One of the main goals that autonomous system have is self-driving vehicles. But there are many more. Then we begin to see it as the parent of the many A.I. projects. It’s possibly one of the toughest A.I. projects that you can actually work on. .”
9. Kia Motors to build the Apple driverless car: Apple has formed a partnership in partnership with Kia Motors (parent company – Hyundai) to build electric vehicles that are driverless in Georgia. In the words of The Wall Street Journal, Kia will start production by 2024 , and will create around 100,000 vehicles in one year.
Apple’s Threats – Apple SWOT Analysis
1. Coronavirus Outbreak: Apple is heavily dependent on China for its manufacturing process and supply chain. Additionally, around 14.5 percent of the $274 billion of revenue was derived from China (a large consumer market of Apple). The virus has had a significant impact and could cause disruption to Apple’s sales through the financial year 2023.
2. Supply Chain Disruption: Recent events have greatly affected and disrupted the operations of the company. The company reported flat revenues in Q2 of 2020 . It also did not provide an estimate of its annual revenue for FY2020 because of uncertainty in supply chain.
3. Apple Bullied By Counterfeits: Apple is now vulnerable to third world countries who are illegally using the brand’s image to market counterfeit products. The dealers selling illegal products are selling Apple fake products for the same price as the authentic Apple product.
Counterfeit items can make buyers believe that they are an Apple product. Apple but with poor quality. Big news could result in bad reviews as well as negative publicity for the business.
4. Increasing Competition: While Apple as its brand has been established as a solid brand but it faces challenges from rivals. Thanks to the advances in technology, companies like Samsung, Google as well as Dell have been offering Apple an uphill battle.
Since competition is becoming more intense, Apple either has to develop new technologies or change their pricing strategy to keep ahead of the pack.
5. Market Penetration: There’s been a major shift regarding market expansion by other brands on the market for smartphones. Businesses like Samsung, HTC, and Lenovo use Android software to develop new smartphones.
Presently, Android has captured 72.23 percent of market share, whereas Apple holds just 24.55 percent of market share worldwide.
6. China Tariffs: US government has increased the tax on imports from China which will increase the cost of products. This adversely impacts the gross margin of the product and can cause the product to be more costly to consumers.
7. Lawsuits: Sixty class action lawsuits were filed in the past year against Apple. People were shocked and dismayed when Apple declared that it intentionally reduces the performance of its CPU on iPhone models that have older and damaged batteries.
The tech giant claimed that it took this action to avoid sudden shutdowns. However, the public were left feeling disappointed as they knew believe that Apple doesn’t believe in the concept of transparency. This led to a plethora of individuals making lawsuits against Apple.
A class action suit began on the 21st of December 2017, alleging that Apple’s actions did not only adversely affect the resale value of their products, but makes it necessary for users to upgrade to more recent versions too early.
8. Backdoor Mechanism: Apple has been constantly under pressure from authorities to open the iPhone by means of a backdoor that is, unlocking the encryption on the iPhone and allowing access to the data stored on it.
In a number of situations, Apple has denied offering the backdoor feature since it could be used by criminals that ultimately compromise thousands of iPhone users.
9. Mark Zuckerberg criticized the monopoly of Apple’s app store: In the course of a recent webcast Mark Zuckerberg, Facebook’s CEO, was critical of Apple over its hold of the App Store as well as its hefty costs.
Mark Zuckerberg states that:
The iPhone App Store ” blocks innovation, blocks competition,” and “allows Apple to charge monopoly rents.”
Apple offers 30% for purchases made in its app store. Apple is frequently criticized due to the fact that a 30% cut can be an enormous amount of money for small-sized businesses as well as app creators.
Apple SWOT Analysis Template
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