In addition, about 14.5 % of its $274 billion in revenue came from China (a big market for Apple). Meanwhile, the lower middle-class customers who form the bulk of global consumers buying mobiles avoid it or are unable to buy it because of the huge prices involved. China’s smartphone market falls 14% in 2018, with just under 400 million units shipped. Tim Cook is the current CEO of the company. SWOT Analysis is a proven management framework which enables a brand like Apple to benchmark its business & performance as compared to the competitors and industry. The major key weaknesses include lack of distribution channels in the countries and high price which can be overcome. Apple’s services include digital content stores, streaming services, iCloud, AppleCare etc. Since then, Apple has grown exponentially in terms of products and services. It will become a $27 billion+ market with 233 million unit sales. Form 10-K for the Fiscal Year Ended December 31, 2018. It reported flat revenue in Q2 of 2020 and declined to offer annual revenue estimates for FY2020 due to supply chain uncertainties. penetration by other brands in the smartphone market. Tell us what you think? Company: Apple Inc. CEO: Tim Cook Year founded: 1976 Headquarter: Cupertino, California, USA Employees (FY2020): 147,000 Type: Public Ticker Symbol:  AAPL Market Cap (Oct, 2020): $1.86 Trillion Annual Revenue (FY2020): $ 274.51 Billion  Profit | Net income (FY2020): $ 57.41 Billion, Products & Services:    Computers | Software | Phones | Watches | Tablets | Cloud Technology | Accessories | Music Platform | Competitors: Microsoft | Lenovo | Google | Samsung | Toshiba | Dell | Sony | HP | Acer |Netflix | Disney | Amazon | Chase | CitiBank | Youtube. Available at: http://files.shareholder.com/, Wang, Y (2017). Their brand recognition is supported by its vast product ecosystem. To increase its profit margins and have a strong market position, Apple should utilize artificial intelligence. The company was incorporated in 1977. Ce SWOT montre les forces, faiblesses, opportunités et menaces qui impactent le plus les décisions prises par Apple. SWOT stands for strengths, weaknesses, opportunities, and threats. Available at: https://brandkeys.com/wp-content/uploads/, Brand Keys (2014). With the advancement in technology, brands like, As the competition is getting stronger, Apple either has to introduce new technologies or. It was founded in 1976 by Steve Jobs, Steve Wozniak, and Ronald Wayne. The company has been able to achieve such strong brand recognition and reputation through its advertising and marketing capabilities. Strengths and weaknesses are internal factors, where as opportunities’ and threats are external factors. Brand Keys’ Customer Loyalty Engagement Index (Apple’s market leader positions 2014-2017). Available at: https://www.canalys.com/, Apple, Inc. (2012). The demand for autonomous is increasing rapidly. SWOT Analysis Apple Strengths. He is passionate about analyzing and writing about businesses. In several instances, Apple has denied providing the backdoor mechanism because it can be exploited by the bad guys, which eventually exposes the security of millions of iPhone users. Today, one of the most successful products of Apple is the ‘iPhone’. Available at: https://s2.q4cdn.com/, Apple, Inc. (2020). Read out this article, to get an understanding of where Apple stands. Available at: https://www.forbes.com/, Graham, M. at CNBC (2019). First, Apple now has a full range of apps, software and products that are interlinked and support each other. iPhone App Store ” blocks innovation, blocks competition,” and “allows Apple to charge monopoly rents.”. The illegal dealers sell Apple counterfeit products at the same value as an original Apple product. Apple puts dedication into its product designs. Deliveroo Business Model | How Does Deliveroo Make Money? This is why they continue to buy and use Apple’s products even when there are better or cheaper options available in the market. Wouldn’t you say Apple has taken the opportunity in “smart wearables”? Consequently, it adversely affects the gross margin on the products and may make the product more expensive for customers. Gupta understands how to create and implement business strategies. Available at: https://www.forbes.com/, Fast Company (2019). Darpan Saxena May 13, 2020 7 Min Read thanks… nice study outcome.. tq for the article.. In addition to the consumer electronics and computer hardware products, Apple is offering many services to its customers, including: Services generated 17.8% of the company’s revenue and was the second fastest growing category for Apple, growing 16% in 2019. Though Apple is working to open up new markets as an opportunity, it has to make sure to sustain its stores’ sales. © 2013-2020 SM Insight. Particularly, in the last quarter of 2018, the sales of iPhone in China fell 20% year-on-year, at the same time when the sales of smartphones by local Huawei increased by 23% during the same period. Apple Inc. does not fail to impress the customers with its products and services. Copyright © 2020 Business Strategy Hub. Available at: https://www.fastcompany.com/, Fast Company (2018). There has been a significant change in market penetration by other brands in the smartphone market. Counterfeit products can make potential customers believe that it is a product made by Apple with low quality. Swot Analysis. Apple Inc., established in 1977, is the largest technology company by revenue and one of the most valuable companies, both in terms of market capitalization and brand value, in the world. All rights reserved | contact@bstrategyhub.com | Logo designed by Looka. Thank you!! It isn’t big news that Apple is a demanded brand in corporate offices. Apple SWOT analysis also indicates that the company is overly dependent on its high-end products for raking in the bulk of the sales revenue. Currently doing an assignment on iPhone and cried profusely because of a mental breakdown. Save my name, email, and website in this browser for the next time I comment. All rights reserved. Tag of innovation – Besides the brand equity, the tag of innovation has always been applied to Apple. The recent events have significantly affected and disrupted its operations. Apple charges a 30% cut for in-app purchases through its app-store. Retail Stores. Apple Swot Analysis – Internal & External Strategic Factors. Form 10-K for the Fiscal Year Ended September 30, 2019. For over 30 years, Apple has been significantly relying on an external advertising agency TBWA/Chiat/Day help for launching its marketing and advertising campaigns. 9. Apple is rapidly expanding into new services such as video content streaming, game streaming, credit card – competing with the dominant players such as Netflix, Disney, Citi, Chase, Paypal, etc. Apple has a specific business page that offers top quality technology solutions for every corporation’s needs. Glad you liked the analysis. Moreover, the company can use its strong brand image and rapid innovation processes to successfully develop and launch new product lines. SWOT Analysis for Apple Strengths Product leadership High quality products Easy-to-use products Superior product design Effective new product development process Ability to leap-frog competitor’s technology Highly innovative IT/software expertise High profit margins … In the year 2017, Apple acquired Regaind, a French AI startup and DeskConnect, an AI tool. Companies like Samsung, HTC, and Lenovo are using Android software to create new smartphones. Apple Strengths in SWOT Analysis. Let’s do the SWOT analysis of company Apple get a proper analytic view of the brand’s strengths, weaknesses, opportunities, and threats (SWOT) It will become a $, Apple has the opportunity to continue to grow beyond just, The youthful population and rapid economic growth in emerging economies offer immense opportunities for expansion. This led to a number of people filing lawsuits against the company. [6] These campaigns resulted in two very well-known advertisements – ‘1984’ and ‘Think Different’ and helped Apple to create an iconic brand image. Deliver Self-Driving Software Technology. Yet the company is still too reliant on the iPhone as a primary revenue stream. In 2013, one of the original Apple computers was sold for more than $671,400 at German auction. Customer loyalty combined with expanding closed ecosystem. Due to their premium pricing, only middle or high-class individuals can afford their products. thank you so much for your hard work man <3. Apple launched its first product ‘Apple 1 computer’ in 1976. It identifies all the key strengths, weaknesses, opportunities and threats that affect the company the most. He's been using his knowledge on strategic management and swot analysis to analyze the businesses for the last 5 years. Apple enjoys a very loyal customer base, considering that it doesn’t even have a loyalty program. Apple has built its business by selling and manufacturing computer hardware and software, but experienced significant growth and success by entering consumer electronics market with iPod, iPad and iPhone products. In addition, Apple has introduced many new services in 2019, such as, Apple’s products can be considered a luxury due to their, Because of their success, Apple does not feel the need to have excessive spending towards advertisement in comparison to other big brands such as, Apple is rapidly expanding into new services, such as video content streaming, game streaming, credit card – competing with the dominant players such as, They might be entering into areas in which they lack competencies; remember the, Even though the latest version of Apple’s phones gives users the right to, Apple is under investigation for unfair business practices after receiving payments to make Google’s search engine as the default search engine for its Safari web browser. Smartphone Market Share. Available at: https://www.kitco.com/news/. Although Apple as a brand has solidified itself, it still faces threats from competitors. Smartphones. Low-Income consumers can’t simply afford Apple products. Apple has the expertise needed to deliver self-driving car technology rather than fully-functional autonomous or electric cars. The company has been providing robust technology products and exceptional software services. Smart wearable technology will soon dominate the world. Customer loyalty is a key to every technology company’s success. Apple’s product ecosystem is comprised of: Apple’s ecosystem is the result of the company’s ability to design a wide variety of integrated proprietary hardware, software, applications and services. Apple charges a 30% cut for in-app purchases through its app-store. The well known hardware products of Apple Inc are iPod and iTunes. Global Apple iPhone sales from 3rd quarter 2007 to 4th quarter 2018 (in million units). Apple SWOT analysis: Threats. Customers praise the company’s products for their innovation, design, ease-of-use, reliability and the status they convey. Mark Zuckerberg criticized monopoly of iPhone’s app store. Apple Inc. can use its strengths to efficiently exploit the opportunities that it has such as expanding its distribution network. Email: [email protected]strategicmanagementinsight.com. The company has not yet implemented or participated in creating sustainable technology that is eco-friendly. It also attempts to examine the potential opportunities that may come along its way and the threats it should keep close eyes on. In addition, about. Brand value is closely related to its recognition, meaning that Apple is also one of the world’s most recognizable brands. Here’s a detailed analysis of Apple’s strengths, weaknesses, opportunities, and threats. In the fiscal year 2020, iPhone sales of, Apple was the first to introduce some of the most, Apple puts dedication into its product designs. You can download your swot instantly after the payment. Available at: https://www.idc.com/, Globe News Wire (2019). The company has not yet implemented or participated in creating. Available at: https://www.apple.com/, Fortune (2019). Tim Cook is the present CEO of the organization. Smartphone Brand Loyalty Statistics (2019). Apple has been accused of using tracking apps in its phones, which revealed the precise location of users. Wrist-Worn Wearables Maintain a Strong Growth Trajectory in Q2 2019, According to IDC. Apple also enjoys the most loyal customer base in the tablet market, where the company was able to grow its market share significantly even when the market declined slightly. Smart wearable technology will soon dominate the world. projects actually to work on.”. Apple AR headset rumors: Apple may release headset in 2022, glasses by 2023. [1], Apple operates and sells its products in over 100 countries, but the U.S. China, the U.K. Canada and Australia are the most important markets. Despite the clarification, consumers felt betrayed because they that Apple does not believe in transparency. Available at: https://images.samsung.com, Alphabet Inc. (2019). SWOT Analysis of Apple Inc. (2019) 14 Oct, 2019 6923 Abstract. The first class-action lawsuit was filed on December 21st, 2017 and alleged that Apple’s actions not only negatively affect the resale value of their products but also forces its users to upgrade to newer versions prematurely. Even though the latest version of Apple’s phones gives users the right to decline the tracking, trust is difficult to regain once it is lost. Best Buy Mission Statement, Vision Statement, Values & Culture, Deloitte: Mission Statement | Vision Statement| Values | Culture, Starbucks Mission Statement, Values, Principles, & Sustainability Goals, Uber: Mission Statement | Cultural Norms | Principles | Philosophy (2020), Amazon: Mission | Leadership Principles | Philosophy (2020), Nordstrom: Mission | Vision | Core Values (2020), Top 15 Chipotle Competitors and Alternatives, Top 20 Starbucks Competitors & Alternatives. Apple has diverse products which appeals to different segments of consumers. Available at: https://www.globenewswire.com/, PwC (2016). Apple competes in a highly competitive industry and has to continuously perform at its best to be able to stay ahead of its competition. The World’s 50 Most Innovative Companies 2019. All the information is supported with data from the most trusted sources. This SWOT report is ideal for case studies. Today, one of the best results of Apple is the ‘iPhone’. Based on this SWOT analysis, it is evident that Apple Inc. has major strengths that can effectively influence the company to address its weaknesses. Sustainability made Possible through Liam. Apple can leverage a strong consumer brand and set of successful products as a strength. It identifies all the key strengths, weaknesses, opportunities and threats that affect the company the most. Available at: https://www.cnbc.com/2019, BankMyCell (2019). One of the most loyal customer base in every major product market where the company operates. Apple sales in China have started recently to decline. A management consultant and entrepreneur. The World's Most Valuable Brands. SWOT Analysis of Apple Apple makes huge investments in the marketing domain. You are welcome! Apple’s excellence in creating spectacular marketing campaigns, its superior advertising capabilities, premium quality products and ability to deliver an excellent customer experience has allowed the company to build the most powerful brand in the world. Apple marketing relies heavily on its iconic and flagship retail stores. They might be entering into areas in which they lack competencies; remember the failure of Apple maps. We respect your privacy. Counterfeit products can make potential customers believe that it is a product made by Apple with low quality. Careful study is initiated and further research is performed to help understand customer needs and requirements. This report closely examines Apple’s strengths, weaknesses, opportunities, and threats. The youthful population and rapid economic growth in emerging economies offer immense opportunities for expansion. We are just scratching the surface…. Consolidated Statements of Financial Position.