Available at: https://www.interbrand.com/, Forbes (2020). SWOT analysis of Apple (5 Key Strengths in 2020) This Apple SWOT analysis reveals how one of the most successful world’s companies used its competitive advantages to become the dominant player in the tech industry. It was founded in 1976 by Steve Jobs, Steve Wozniak, and Ronald Wayne. Smart wearable technology will soon dominate the world. Save my name, email, and website in this browser for the next time I comment. Apple’s retention rates in the smartphone market are the highest among its major rivals. From the days of mcintosh computers, Apple is known to be a brand with promise. 2017 Winning Brands - Brand Keys Customer Loyalty Engagement Index. 2019 Winning Brands - Brand Keys Customer Loyalty Engagement Index. Available at: https://microsoft. Darpan Saxena May 13, 2020 7 Min Read Email: [email protected]strategicmanagementinsight.com. As the largest cellular giant, the company understands the importance of user- company interactions. Apple Strengths in SWOT Analysis. Available at: https://images.samsung.com, Alphabet Inc. (2019). I am glad you liked it. It attempts to examine how Apple Inc. has been utilising its strengths and addressing its weaknesses. SWOT Analysis of Apple Inc. 2019. Smartphone Brand Loyalty Statistics (2019). Well, the credit to the success goes largely to the business analysts who perform a SWOT analysis. Thank you very much for this analysis SG! The main company’s product is iPhone, which runs on Apple’s iOS operating system and accounts for 54.7% of the total company’s revenue. The company has been providing robust technology products and exceptional software services. Global Apple iPhone sales from 3rd quarter 2007 to 4th quarter 2018 (in million units). , smart wearable technology device sales will double by 2022. It isn’t big news that Apple is a demanded brand in corporate offices. Loyal Customer Base. The illegal dealers sell Apple counterfeit products at the same value as an original Apple product. Yet the company is still too reliant on the iPhone as a primary revenue stream. The demand for autonomous is increasing rapidly. It reported flat revenue in Q2 of 2020 and declined to offer annual revenue estimates for FY2020 due to supply chain uncertainties. Apple charges a 30% cut for in-app purchases through its app-store. The SWOT analysis of Apple detects all the main strengths, weakness, opportunities, and threats that helps the company more to scale up. It has become the largest technological giants of today (World Economic Forum). Here’s a detailed analysis of Apple’s strengths, weaknesses, opportunities, and threats. Arzath Areeff. Retail Stores. Moreover, the company can use its strong brand image and rapid innovation processes to successfully develop and launch new product lines. It also attempts to examine the potential opportunities that may come along its way and the threats it should keep close eyes on. Copyright © 2020 Business Strategy Hub. Share your thoughts and experiences in the comments section below. One of the most loyal customer base in every major product market where the company operates. We respect your privacy. The company is often criticized because a 30% cut is a significant commission for small businesses or app developers. 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. His work is published in many publications, including three books. They might be entering into areas in which they lack competencies; remember the failure of Apple maps. 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. There could be many new form factors, for example, smart ring, smart headgear, smart shoe, smart glasses with a possible application in healthcare, gaming, etc. 6. Most parts of an iPhone can be reused. [3] The company has revolutionized the smartphone market and has created one of the most iconic brands in history. There are others. Available at: https://www.canalys.com/, Apple, Inc. (2012). Strengths and weaknesses are internal factors, where as opportunities’ and threats are external factors. Apple has the expertise needed to deliver self-driving car technology rather than fully-functional autonomous or electric cars. Their brand recognition is supported by its vast product ecosystem. projects. Apple, Inc. (2019). As an enterprise with a skillset, we have managed to gather the attention of users by conveying a true picture of the company products. 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. Apple is already planning to expand its, Apple has the opportunity to focus on delivering, Apple has partnered with Kia Motors (parent company – Hyundai) to assemble driverless electric cars in Georgia. Apple Inc. SWOT Analysis. [6] This should result in lower costs and ever stronger marketing and advertising capabilities. Thanks Ribana for the kind words ! You are welcome! These reusable parts are then categorized and safely stored so they can be used for new manufacturing. Available at: https://www.forbes.com/, Graham, M. at CNBC (2019). Strengths; Weaknesses; Opportunities ; Threats. Available at: https://www.productchart.com, IDC (2019). For more information on how to do a SWOT analysis please refer to our article. SWOT Analysis of Apple Inc January 10, 2019 Strengths. Apple sales in China have started recently to decline. Available at: https://fortune.com/, Interbrand (2019). Apple SWOT Analysis In A Nutshell. Companies like Samsung, HTC, and Lenovo are using Android software to create new smartphones. 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. Mark Zuckerberg criticized monopoly of iPhone’s app store. thanks… nice study outcome.. tq for the article.. The recent events have significantly affected and disrupted its operations. Apple is headquartered in, Today, one of the most successful products of Apple is the ‘iPhone’. The outbreak has significantly affected and may continue to disrupt  Apple’s sales in the fiscal year 2021. In this discussion, I will take you through the SWOT Analysis of Apple and will scrutinize in detailed some interesting insights about Apple. Many of Apple’s competitors have tried and still try to imitate the success of Apple’s product ecosystem, but fail due to not having strong capabilities in designing, manufacturing and developing both hardware and software, applications and services. Apple is one of the leading brands in the IT & Technology sector. Apple can always rely on the power of the internet for future opportunities to gain new customers and form new alliances. There has been a significant change in market penetration by other brands in the smartphone market. Despite the clarification, consumers felt betrayed because they that Apple does not believe in transparency. With the expansion of their team, Apple can continuously build new opportunities. The World’s 50 Most Innovative Companies 2018.Available at: https://www.fastcompany.com/, Forbes (2020). Smart wearable is still a very new category, there are a lot of opportunities to explore and grow here. highly appreciate the time you have put into this thanks man. It strips them all the way down to a single bolt. Form 10-K for the Fiscal Year Ended June 30, 2019. Apple, Inc. is one of the most successful companies in the world. Microsoft Corporation (2019). 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. 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 is one of the most reliable company when it comes to personalized advanced computers and smart technology devices. We're the No.1 source for both free and paid SWOT analyses on the web. big news can result in negative reviews and, Although Apple as a brand has solidified itself, it still faces threats from competitors. Apple’s researchers, developers, and product specialists are a team of highly qualified professionals that have years of experience in branding consumer products. It’s probably one of the most difficult A.I. its great, Keep posting for other giant companies. According to their latest study,[8] Apple’s brand enjoys the most loyal customer base in the tablet market. Gupta understands how to create and implement business strategies. Customers have to exclusively purchase Apple apps or accessories to continue using their Apple products. It examines the world’s top brands in many industries and how loyal customers are to these brands. Das Unternehmen Apple wurde aufgrund seiner Einfachheit ausgewählt. The Wearable Life 2.0. 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. Vielmehr soll es dir die SWOT Analyse Schritt für Schritt anhand eines realen Beispiels näherbringen. 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. With the advancement in technology, brands like, As the competition is getting stronger, Apple either has to introduce new technologies or. Thank you for this, I now have hope ! Based on this SWOT analysis, it is evident that Apple Inc. has major strengths that can effectively influence the company to address its weaknesses. Low-Income consumers can’t simply afford Apple products. Form 10-K for the Fiscal Year Ended September 27, 2014. On a Bloomberg interview, Apple CEO Tim Cook says: ” We are focusing on autonomous systems. Apple Inc. can use its strengths to efficiently exploit the opportunities that it has such as expanding its distribution network. Apple puts dedication into its product designs. You can download your swot instantly after the payment. Form 10-K for the Fiscal Year Ended September 30, 2019. Tell us what you think? 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. A management consultant and entrepreneur. Analyse SWOT d'Apple Cet exemple de SWOT permet de mettre en évidence comment Apple a utilisé ses avantages compétitifs pour devenir un des acteurs majeurs du secteur des nouvelles technologies. There are huge opportunities for this company, and there are major threats from the competitors as well. Smartphones. The company held this position for over 5 years. Entering an Apple owned retail store is a fantastic experience. He's been using his knowledge on strategic management and swot analysis to analyze the businesses for the last 5 years. iPad category, which includes iPad, iPad Pro, iPad Air and iPad mini products, accounts for 8.2% of the total Apple’s revenue. Available at: https://www.cnbc.com/2019, BankMyCell (2019). Your information is safe and will never be shared. Their customer retention rate of 92% is phenomenal. Ovidijus is the founder of SM Insight and the lead writer since 2013. ie Apple Watch. Careful study is initiated and further research is performed to help understand, Apple has been expanding its services portfolio for many years. Apple, Inc. is one of the most successful companies in the world. Thank you!! [1] In 2019, the company introduced three new iPhones: iPhone 11, iPhone 11 Pro and iPhone 11 Pro Max. He is passionate about analyzing and writing about businesses. Tracking users undermines trust. Intelligent Virtual Assistant (IVA) Market Size, Share & Trends Analysis Report. It identifies all the key strengths, weaknesses, opportunities and threats that affect the company the most. The company is often criticized because a 30% cut is a significant commission for small businesses or app developers. It identifies all the key strengths, weaknesses, opportunities and threats that affect the company the most. Counterfeit products can make potential customers believe that it is a product made by Apple with low quality. Smart wearable technology will soon dominate the world. Form 10-K for the Fiscal Year Ended December 31, 2018. In 2015, the company became a member of Dow 30, a pretty prestigious corporate club. S.K. Apple continues to grow its wearable category i.e., Apple Watch, AirPods, etc. Form 10-K for the Fiscal Year Ended September 29, 2012. TESCO SWOT Analysis 2019 | SWOT analysis of TESCO, Microsoft SWOT Analysis 2019 | SWOT Analysis of Microsoft. The company designs, manufactures and markets smartphones, tablets, personal computers, wearables and accessories, and offers many related services including financial services. Mac products are the second largest company’s product category by revenue, generating 9.9% of the total company’s revenue. One of the major strengths of Apple inc. is its loyal customer base. Smartphone Market Share. The well known hardware products of Apple Inc are iPod and iTunes. 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. This led to a number of people filing lawsuits against the company. Careful study is initiated and further research is performed to help understand customer needs and requirements. 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. Wouldn’t you say Apple has taken the opportunity in “smart wearables”? SWOT Analysis Apple Strengths. Available at: https://www.idc.com/, Globe News Wire (2019). Available at: https://www.fastcompany.com/, Fast Company (2018). 8. Apple’s ad agency has layoffs as the company beefs up its in-house ads group. Moreover, Apple has a reputation of developing highly innovative, well designed, and well-functioning products, as well as for delivering a great customer experience and sound financial performance. Some of the threats that the company faces based on SWOT analysis for Apple are: Increase competition: The Company faces cut-throat competition from companies like Samsung, Dell, and Google. From the SWOT analysis, Apple’s products are deemed to be of high quality and the revenue keeps going up though there is stiff competition. Figure 3. SWOT Analysis strengths are internal factors that let you overcome weaknesses and take advantage of opportunities in the external environment. SWOT Analysis of Apple Apple makes huge investments in the marketing domain. 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. Available at: https://www.cnet.com/, Grand View Research (2019). According to the Wall Street Journal, Kia will begin production by 2024 and produce about 100,000 vehicles in the first year. From 2014 to 2017, Apple also had the most loyal customer base in the smartphone and laptop markets as revealed by the same customer loyalty engagement study each year. Swot Analysis of Apple In 1976, Steve Jobs, Ronald Wayne, and Steve Wozniak founded Apple Inc. Headquartered in Cupertino, California, Apple is best known for the personal computer revolution it started. Tag of innovation – Besides the brand equity, the tag of innovation has always been applied to Apple. [6] These campaigns resulted in two very well-known advertisements – ‘1984’ and ‘Think Different’ and helped Apple to create an iconic brand image. Apple is a very successful company. This report closely examines Apple’s strengths, weaknesses, opportunities, and threats. In the fiscal year 2020, iPhone sales of $137 Billion represent half (50%) of apple’s overall revenue of $274 Billion. Following the SWOT strengths of Apple Inc. And we start to see it as a mother of all A.I. All rights reserved. Strengths in SWOT analysis of Apple Iphone Brand equity – Apple is one of the top most companies of the world for its brand equity. Apple SWOT analysis: Threats. As the competition is getting stronger, Apple either has to introduce new technologies or revise its pricing policy to stay ahead of its competition. SWOT Analysis of Apple. Apple competes primarily on price, product and service features, quality and reliability, design innovation, a strong third-party software and accessories ecosystem. Apple has partnered with Kia Motors (parent company – Hyundai) to assemble driverless electric cars in Georgia. iPhone App Store ” blocks innovation, blocks competition,” and “allows Apple to charge monopoly rents.”. Join our newsletter today to get updates on the latest posts! Weaknesses in Apple SWOT Analysis 1. All the information is supported with data from the most trusted sources. Let’s do the SWOT analysis of company Apple get a proper analytic view of the brand’s strengths, weaknesses, opportunities, and threats (SWOT) In the year 2018, Apple sold 217 million iPhones. The products are priced for middle and high-income consumers. Apple is headquartered in Cupertino, California and was founded by Steve Jobs. Many customers often contact us with requests for custom business/market specific SWOTs, because they trust us. The SWOT analysis of Apple tells us the way Apple made use of its competitive advantage to turn out to be a leading player in the technology industry. Swot Analysis. 3. Apple is a multinational company that is jointly owned by Vanguard Group and BlackRock, both being institutional investors. There are many large and well-positioned rivals in the industry, so a fierce competition requires constant innovation and taking advantage of the arising opportunities. Apple’s brand is the world’s most valuable and recognizable brand. Apple Inc.’s ability to design and develop its own hardware, software, applications and services allows the company to introduce unique, innovative and easy-to-use products and solutions for its customers. It is a major player in the laptop as well as smartphone industry. Apple has been dominating the technology sector for years now. This example SWOT was generated using the SWOT analysis Excel template that you can download for free on this website. Liam is designed to yield as many reusable parts as possible. 2016 Winning Brands - Brand Keys Customer Loyalty Engagement Index. Bevor wir starten noch ein wichtiger Hinweis: Diese SWOT Analyse (die zugegeben am Ende sehr positiv ausfällt) soll keineswegs eine Kaufempfehlung für das Unternehmen Apple darstellen. Available at: http://files.shareholder.com/, Wang, Y (2017). SWOT Analysis of Apple A SWOT analysis is an incredibly easy but effective method used to identify the components that help a business thrive or contribute to its development. The company has been providing robust technology products and exceptional software services. big news can result in negative reviews and bad publicity for the company. Available at: https://www.apple.com/, Fortune (2019). Apple launched its first product ‘Apple 1 computer’ in 1976. The company was incorporated in 1977. U.S. Dollar can still roar in 2020 even as it ends 2019 with a whimper. 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. projects actually to work on.”. The company has number of strengths along with some weaknesses which … 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. Increasing the Profit of Training Part Three When working to increase the profitability of training and running a training team as a P&L, as with any other business there are only two way to increase profit: increase revenue or decrease costs. Apple Inc.’s SWOT Analysis Recommendations. [7], Figure 2. 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. Brand Keys, a consultancy agency, issues a “Customer Loyalty Engagement Index” study each year. Available at: https://www.kitco.com/news/. Due to their premium pricing, only middle or high-class individuals can afford their products. Available at: https://techcrunch.com/, Johnson, L. at Macworld (2019). Ce SWOT montre les forces, faiblesses, opportunités et menaces qui impactent le plus les décisions prises par Apple. Available at: https://www.bankmycell.com, Brand Keys (2019). iPhone App Store ” blocks innovation, blocks competition,” and “allows Apple to charge monopoly rents.”. Apple has been expanding its services portfolio for many years. Apple is highly dependent on China for its manufacturing and supply chain. Available at: https://www.forbes.com/, Fast Company (2019). Best Global Brands 2019. Available at: https://www.idc.com/, Research and Markets (2018). The company can also use these strengths to exploit opportunities, such as the expansion of its distribution network. Apple has been under constant pressure by government agencies to unlock the iPhone via a backdoor, which means unlocking the encryption of the iPhone and giving access to its data. It has millions of loyal customers with steady increment. Distribution – Apple swot analysis tells us that Apple has 470 of its own stores across 17 countries. Glad you liked the analysis. SWOT stands for strengths, weaknesses, opportunities, and threats. Here's how. Apple’s ability to retain its customers and do it so well brings it a competitive advantage no rival can match. iPad 3 is an important electronic device by Apple Inc that is recently launched by the company in order to cover up majority of the market share for tablets. This gives comfort to me as an investor to be part of this firm. Apple has solidified their grounds by establishing loyal customers, even with limited advertising resources. Available at: https://www.businesswire.com/, IDC (2019). In addition, Apple has introduced many new services in 2019, such as Apple TV+ (launched in Nov 2019), Apple news+ and Apple Card (credit card services), Apple Arcade (game subscription). The rest of the company’s products include wearables, home and accessories, which account for another 9.4% of the revenue and is the fastest growing Apple’s product category, growing by 41% in 2019. In addition, about 14.5 % of its $274 billion in revenue came from China (a big market for Apple). The company has not yet implemented or participated in creating sustainable technology that is eco-friendly. Recently, the company has extended its AI portfolio. Currently, the distribution network that Apple has is very limited and leaves room for minimal growth. Apple can leverage a strong consumer brand and set of successful products as a strength. 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. Available at: https://brandkeys.com/wp-content/uploads/, Brand Keys (2016). The company has been able to achieve such strong brand recognition and reputation through its advertising and marketing capabilities. It reported flat revenue in Q2 of 2020 and declined to offer annual revenue estimates for FY2020 due to supply chain uncertainties. The tech giant said that it did so to prevent unexpected shutdowns. [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. It will become a $27 billion+ market with 233 million unit sales. Available at: https://brandkeys.com/wp-content/uploads/, Samsung Electronics Co., Ltd.(2019). Apple competes in a highly competitive industry and has to continuously perform at its best to be able to stay ahead of its competition. SWOT Analysis of Apple Inc. Apple Inc. is a manufacturing company of consumer electronics and software products. Deliver Self-Driving Software Technology. The favourable brand perception had also increased sales of Macintosh computers. April 16, 2020; Business; Apple was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne in April 1976. Powerful brand supported by strong advertising and marketing capabilities. Apple Swot Analysis – Internal & External Strategic Factors. China’s smartphone market falls 14% in 2018, with just under 400 million units shipped. SWOT analysis of Apple – Apple SWOT analysis This is a detailed SWOT analysis of Apple Inc. © 2013-2020 SM Insight. In 2017, the revenue of Apple was recorded around $229,23 billion, which was the largest by any IT company. Canalys (2019). Since then, Apple has grown exponentially in terms of products and services. Through this Apple SWOT Analysis report, one can learn the exclusive details of Apple. Besides, the company’s strong brand and excellent innovation … Currently doing an assignment on iPhone and cried profusely because of a mental breakdown. Apple was the first to introduce some of the most innovative products that have changed the world (iPhones, iPads). In other words, it creates a competitive advantage no other company can match. Made my research fun and easy! Available at: https://www.pwc.com/us/en/industry/entertainment-media/assets/pwc-cis-wearables.pdf Accessed January 7, 2020, Product Chart (2020). Did you know? Kia Motors to build Apple’s driverless car. According to Forbes, smart wearable technology device sales will double by 2022.