SWOT ANALYSIS OF By Hardeep Singh
APPLE INC.
ABOUT
Founded by Steve Jobs, Steve Wozniak and Ronald Wayne in April
1976 & incorporated in January 1977,
Apple Inc. is an American multinational technology company
headquartered in Cupertino, California, that designs, develops,
and sells consumer electronics, computer software, and online
services. It is considered one of the Big Four technology
companies, alongside Amazon, Google, and Microsoft
Apple's software includes
the macOS,
PRODUCTS iOS,
IPadOS,
watchOS, and
tvOS operating systems,
The company's hardware products include the iTunes media player,
the Safari web browser,
iPhone smartphone, the Shazam acoustic fingerprint utility,
and the iLife
the iPad tablet computer,
and iWork creativity and productivity
the Mac personal computer, suites,
the iPod portable media player, professional applications like Final Cut Pro,
the Apple Watch smartwatch, Logic Pro, and Xcode.
the Apple TV digital media player, Its online services include the iTunes Store,
the iOS App Store, Mac App Store, Apple
the AirPods wireless earbuds Music, Apple TV+, iMessage, and iCloud.
and the HomePod smart speaker. Other services include Apple Store, Genius
Bar, AppleCare, Apple Pay, Apple Pay
Cash, and Apple Card.
SWOT
ANALYSIS
S O T
• Most valuable brand W • Consistent • Coronavirus
Outbreak
OPPORTUNITIES
• Globally Iconic • High Priced Customer
• Top Technology Growth • Apple
O P P O RT U N I T I E S
Products
• Brand Of Choice • Limited • Qualified Bullied By
• Proficient Research advertisement & Counterfeits
Professionals
T H R E AT S
•
STRENGTHS
Expansion promotions • Increasing
in services • Entering into
• Expansive
Distribution Competition
area of non-
NESSES
competency Network
• Incompatibility • Lack of Green
STRENGTHS
1. Most valuable brand – Apple is ranked # 1 for the 7th consecutive year by
interbrand with a brand value of $234 billion.
2. Globally Iconic – Apple is one of the most reliable company when it comes to
personalized advanced computers and smart technology devices. It has millions of
loyal customers with steady increment.
3. Top Technology – Apple was the first to introduce some of the most innovative
products that have changed the world (iPhones, iPads). Apple is still determined to
build and craft better, more proficient technology devices.
4. Brand Of Choice – It isn’t big news that Apple is a demanded brand in corporate
offices. Apple has a specific business page that offers top quality technology
solutions for every corporation’s needs.
5. Proficient Research – Apple puts dedication into its product designs. Careful study
is initiated and further research is performed to help understand customer needs and
requirements.
WEAKNESSES
1. High Priced Products – Apple’s products can be considered a luxury due to their premium prices. The
products are priced for middle and high-income consumers. Low-Income consumers can’t simply afford
Apple products. Due to their premium pricing, only middle or high-class individuals can afford their
products.
2. Limited advertisement & promotions – Apple has solidified their grounds by establishing loyal
customers, even with limited advertising resources. Apple marketing relies heavily on its iconic and flagship
retail stores. Because of their success, Apple does not feel the need to have excessive spending towards
advertisement in comparison to other big brands such as P&G, Coca Cola and Samsung technology.
3. Entering into area of non-competency – 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. They might be entering into areas in which they lack competencies;
remember the failure of Apple maps.
4. Incompatibility With Other Software – When a customer buys an apple product, they enter the Apple
universe. Apple’s products do not support other software or technologies making them incompatible with
other devices. Customers have to exclusively purchase Apple apps or accessories to continue using their
Apple products.
OPPORTUNITIES
1. Consistent Customer Growth – Apple has been dominating the technology sector for years
now. They provide top quality and cutting-edge technology that offers a breakthrough in
customer experience. Their customer retention rate of 92% is phenomenal. Apple can always
rely on the power of the internet for future opportunities to gain new customers and form new
alliances.
2. Qualified Professionals – Apple’s researchers, developers, and product specialists are a team
of highly qualified professionals that have years of experience in branding consumer
products. With the expansion of their team, Apple can continuously build new opportunities.
3. Expansive Distribution Network – Apple Inc. has the opportunity to expand its distribution
network. Currently, the distribution network that Apple has is very limited and leaves room
for minimal growth. Apple can generate higher revenue and sales if it focused on creating an
expansive distribution network. Furthermore, the company can benefit from diligent
marketing and promotions.
4. Lack of Green Technology – Apple is yet to launch products that are created using green
technology. The company has not yet implemented or participated in creating sustainable
technology that is eco-friendly.
THREATS
1. Coronavirus Outbreak – Apple is highly dependent on China for its manufacturing and
supply chain. In addition, about 17 % of its $260 billion in revenue come from China. The
coronavirus outbreak has significantly affected and may continue to disrupt about 32% of
Apple’s annual revenue in the fiscal year 2020.
2. Apple Bullied By Counterfeits – Apple has become vulnerable to third world countries
illegally utilizing the brand image to sell counterfeit products. The illegal dealers sell Apple
counterfeit products at the same value as an original Apple product. Counterfeit products
can make potential customers believe that it is a product made by Apple with low quality.
big news can result in negative reviews and bad publicity for the company.
3. Increasing Competition – Although Apple as a brand has solidified itself, it still faces
threats from competitors. With the advancement in technology, brands like Samsung,
Google, and Dell are giving Apple tough competition. As the competition is getting
stronger, Apple either has to introduce new technologies or revise its pricing policy to stay
ahead of its competition
