Its services revenue grew the highest in its history in 2018. So, premium prices still constitute a hindrance to sales growth. For Apple, 2018 was a year of strong financial performance. Another threat to the company may be the fear that its products can be imitated. Greater China is one of the leading markets of Apple apart from America. These strengths are internal factors specific to the conditions within the business organization. Apple Swot Analysis - Free download as PDF File (.pdf), Text File (.txt) or read online for free. Another one of its strengths is that the company is self-sufficient in developing its own hardware, software, services, and all other applications. This has given rise to the concept of Apple universe whereby the customers are propelled to buy supportive products to enhance their products that are already in use. Apple Inc. Industry Analysis Business Policy and Strategy . Emerging technological areas can be a profitable deal for Apple. High profit margins 3. It enjoys huge profit margins on almost all its offerings. One of the leading strengths of Apple is its strong brand image. The product also might be less expensive, so it is attractive to the consumers. There are several good things about the company. View Apple Inc. SWOT Analysis (1).pdf from ADM 657 at Universiti Teknologi Mara. One of the major criticisms of Apple is that the company’s software is incompatible with working with any other software. Profit margins on most products and particularly the iPhone, which is Apple’s leading revenue generator is quite high. iPhone 7 cost $649 in 2016, and in about three years, its price increased by 54%. Apple is truly an international brand and its popularity is high not just in the domestic markets but also abroad. Regulation of the technology industry has grown stiffer during recent years. Apple Inc Report contains a full version of Apple PESTEL analysis. However, in case Apple enters any of these areas on a larger scale then it could prove highly profitable for the brand. However, since Apple’s products are widely distributed and sold the world over, there is high risk of problems occurring in some countries where trading with Apple’s distributors is not feasible. Whether, it is China or European Union, Apple, Google, Microsoft, Amazon and Facebook, all have faced challenges due to growing regulatory pressure. Matching Customer expectations – Being a leading company since 1980’s Apple has a major market share and the consumer expectation is going through the roof. However, there is also some good news. Since the company revolutionized personal computing by introducing Macintosh in 1984, it has continued to remain on the leading edge of technological transformation globally. The term Swot is an acronym for strengths, weaknesses, opportunities, and threats. App store which is the world’s safest and most vibrant app workplace would now be available in 175 countries and regions. Apple still has not been able to move very far from its core products like iPhone, Mac, and Ipad. The reason is their excellent quality and great user experience. 11. 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. Logo Industries served • Computer hardware (Mac, iMac, Mac Pro, MacBook, MacBook Air) • Computer software (iOS, OS X, Safari, iLife, iWork, iMovie, iPhoto) • Consumer electronics (iPod, iPhone, iPad, Apple TV and Mac products) • Internet (iTunes store, iCloud, App Store, Mac App … This template is a standard guide on company swot analysis. However, apart from product quality, there are other things also which have helped Apple secure a place for itself in the hearts of its customers. As of 2020, Apple iPhone is one of the leading brands in the mobile handsets sector. However, to reduce its dependence on personal computing and mobile computing products, it will need to diversify into new areas. The SWOT analysis of the company is significant in revealing where the company stands today and how it will go about in the coming years of the future. Apple Swot Analysis.pdf Additionally, another threat present for Apple Inc. may be the emergence of new companies that offer the same products. It began as a computer software and hardware manufacturers. These competitors might provide the same product with more or less the same features. Tim Cook attributed the decline in revenue and sales during the first quarter of 2019 to the trade war and rising tariffs which led to lower sales in China. Apple Inc. SWOT Analysis by Syahira Nadia Sulaiman Submission date: 17-Jun-2020 09:33PM (UTC+0800) Submission ID: The problem is that Apple risks dilution by bringing prices down. However, Microsoft and Amazon are reaping larger benefits by entering the cloud industry. Apple has stayed focused mainly on its core products. Logo Industries served • Computer hardware (Mac, iMac, Mac Pro, MacBook, MacBook Air) • Computer software (iOS, OS X, Safari, iLife, iWork, iMovie, iPhoto) • Consumer electronics (iPod, iPhone, iPad, Apple TV and Mac products) • Internet (iTunes store, iCloud, App Store, Mac App … The SWOT or strategic analysis of Apple showed that the major key strengths of Apple Inc. that comes from the quality and uniqueness of the Apple iPhone. There was again a major difference in the net sales of iPhones during the second quarter of fiscal 2018 and 2019. Apple (NASDAQ: AAPL) was founded by Steve Jobs and Steve Wozniack in 1976. People expect great things from apple … However, the iPhone is the leading source of revenue for the brand and the decline in iPhone sales has a more significant impact on the net revenue of Apple. In 2018, its R&D expenditure grew past $14 billion to reach $14.24 billion. Moreover, another important strength of the company is its advanced and attractive advertising and marketing abilities. As a part of its research and development program, it focuses on growing its range of products and services as well as making improvements to the existing ones. A critical analysis of Apple was done on its corporate governance, corporate social responsibility and strategies. This enables the building of brand loyalty and confirms future customers. in English literature from BRABU and an MBA from the Asia-Pacific Institute of Management, New Delhi. Analyzing and assessing all of these will help the company, its customers, and its competitors alike to make a decision that benefits the respective parties. Moreover, Apple SWOT analysis or SWOT analysis for Apple would provide an understanding of the Apple strategic situation. The opportunities available for Apple Inc. are external factors that affect its supply. Other major sources of revenue for the brand are Macbook and iPad. Higher regulation has also led to higher compliance costs and growth in the number of barriers. According to market research company Statista, Apple has sustained its leading market position in the US smartphone market for the past several years. The Swot analysis for company is showed below: STRENGHTS: Apple is producing innovative, quality and easy to use products. 2Saveetha School of Law, Saveetha Institute of Medical and Technical Sciences, Saveetha University, Chennai. Its popularity in most corners of the world is very high and customers from around the world love its technology products. SWOT Analysis of Apple Strengths Leading Innovators Among Electronics Brands: Apple has been ranking consistently at the top of the BDG’s list of 50 companies since 2005 due to its innovation in electronic devices. In 2019 however, Apple’s market cap has remained mostly at $920 to $960 billion. Effectiv… We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing. The brand also invests a large sum each year in advertising. The report illustrates the application of the major analytical strategic frameworks in business studies such as SWOT, Porter’s Five Forces, Value Chain analysis, Ansoff Matrix and McKinsey 7S Model on Apple. The company has made a strong return in the recent years. PDF | Apple had made our life even easier than time when Apple was just a fruit. Apple’s core strength is its focus on innovation and product quality which have helped it maintain its strong position. Currency fluctuations and economic changes also affect the business of international technology brands like Apple. Some of these outsourcing partners are single-sourced suppliers of components and manufacturers for several Apple products. It is a major player in the laptop as well as smartphone industry. Apple’s weaknesses are not many but are sufficient enough to be mentioned. Background Founded in 1976 by Steve Jobs and Stephen Wozniak, Apple Inc. has since become one of the world’s largest tech and electronics companies today. Strengths in SWOT analysis of Apple Iphone. Its subsidiaries include Beats Electronics, Apple Store, NextVR, FileMaker, and many more. 1. Apple sales in China have started recently to decline. However, a stronger dollar is still having a negative effect on its profits. The United States is the largest market for Apple products followed by China. This argument suggests that sales might slow down. However, services also form a significant part of its portfolio as the company’s revenue from services grew past $37 billion in 2018. Apple’s brand recognition is maintained via media giants and technology companies such as Forbes that acknowledges that the company is worth about 205.5 Billion US Dollars. His focus was not just on innovation but on creating products everyone could fall in love with. The Apple SWOT analysis highlights that one of its biggest strength is no doubt the ability to overcome all other weaknesses. But that apart another factor that helps Apple is no doubt the internal business environment. Apple’s SWOT analysis pinpoints the most significant opportunities that the company can exploit. Apple’s customers seek performance SLIDE | 2 ABOUT APPLE Name Apple Inc. An Apple Wireless Keyboard (German language) and Magic Mouse. Apple has very well managed its international presence through physical and online stores. Business Strategy Hub is your complete guide to business strategies. In the fiscal year 2020, iPhone sales of $137 Billion represent half (50%) of apple’s overall revenue of $274 Billion. Even if the performance of the brand in the first two quarters of 2019 has not been as good as last year, the reasons can be attributed to the trade wars and some other changes in the PC and smartphone industries. Weaknesses in Apple SWOT Analysis. Strengths in SWOT analysis of Apple Iphone. This affects revenue negatively and profits as well. In this case, the following are the most notable strengths of Apple Inc.: 1. While Apple has a strong position in the computing and smartphone industry, the technology industry is undergoing fast changes. environment through SWOT analysis, PESTLE analysis, BCG matrix and Porters five forces model. Apple Inc.’s SWOT Analysis Recommendations Based on this SWOT analysis, it is evident that Apple Inc. has major strengths that can effectively influence the company to address its weaknesses. From 5G to AI and IoT, all these emerging areas in technology have brought a large number of opportunities for the technology brands. Competition in the technology industry including personal computing, cloud technology, and the smartphone industry has kept growing. The company was incorporated in 1977. Apple now has a large portfolio of products and services. Apple SWOT analysis . A collaborative effort is needed to conduct a SWOT analysis easily, make sure to work hand-in-hand with your colleagues. Most valuable brand . The premium products of Apple have a large base of loyal customers all around the globe. Read our article about SWOT Analysis to learn more about SWOT Analysis. Apple Computer Company was founded in April 1976 by Steve Jobs, Steve Wozniak and Ronald Wayne. Get a verified writer to help you with SWOT Analysis of Apple Inc. One cannot say anything with much certainty right now. Meanwhile, Amazon and Microsoft entered the cloud industry and have seen their revenue and profits grow faster. Abdulla Aljafari . The SWOT or strategic analysis of Apple showed that the major key strengths of Apple Inc. that comes from the quality and uniqueness of the Apple iPhone. However, while the premium prices of Apple products do not entirely constitute a weakness, Apple sales could have been higher at lower prices. SWOT analysis of Apple. SWOT Analysis of Apple Strengths Leading Innovators Among Electronics Brands: Apple has been ranking consistently at the top of the BDG’s list of 50 companies since 2005 due to its innovation in electronic devices. Globally Iconic. The company has internal as well as external advantages and strengths. It ensures that only the suppliers who offer the best quality raw materials are a part of its supply chain. SWOT Analysis of Apple Inc January 10, 2019 Strengths. In 2007 Apple Computer Inc. changed the company name to Apple Inc., which reflects the expansion in the market for consumer electronics while maintaining its traditional focus on the personal computer. As of 2019, the company had more than 500 retail stores globally. Apple is the first American company to reach the trillion-dollar mark. SWOT Analysis of Apple 2018 #INTRODUCTION: Apple is an innovative technology brand that enjoys very high level of popularity globally. Apple customers do not mind paying extra for its premium range of products. iPhone sales fell from $61 billion in the first quarter of 2018 to around $52 billion in 2019 q1. The fear of having their software or any aspect of the technology stolen is big enough to take measures to cover for it. Apple is famous worldwide for several things including its cutting edge technology, superior quality premium products, marketing as well as financial strength. Since its logo has become a status symbol; the company is alleged to charge the “Apple Tax” for its branding. While the success of Apple as a technology brand is attributed to the visionary leadership of Steve Jobs, its products have continued to outshine rival products and brands even after his departure. Innovative products – One of the key strengths of Apple over the years has been its innovative product line up. The major key weaknesses include lack of distribution channels in the countries and high price which can be overcome. The Company sells a limited range of third-party Apple-compatible products, including application software and various accessories, through its retail and online stores (Apple Annual Report, 2018). contact: support@notesmatic.com, admin@notesmatic.com, net sales of the iPhone came down to around $31 billion, Apple is working on autonomous driving technology, How To Market Your Small Business Successfully, What You Need To Know About Marketing for Your New Business. Apple is one of the biggest names in the information technology industry and operating in the market for several decades. SWOT stands for strengths, weaknesses, opportunities, and threats. Apple Inc.’s competitors include Samsung, Google, Nokia, Sony, and many more. Strong brand image 2. With their help, SWOT analysis below was constructed. environment through SWOT analysis, PESTLE analysis, BCG matrix and Porters five forces model. All these factors have led to growth in the number of challenges before the brand while its rival Microsoft has steadily managed its market cap above 1 trillion for the past few months. Strong brand. While the industry has changed swiftly and its competitors embraced the latest opportunities including cloud technology, Apple has been relatively slower in this area. A balanced presence in mature as well as emerging markets has enabled the company to record a steady revenue growth. They’ve come a long way since the initial Macintosh computer, but in business, there’s always room for adjustment. Brand equity – Apple is one of the top most companies of the world for its brand equity.From the days of mcintosh computers, Apple is known to be a brand with promise. 2018 was a great year for the brand financially. Pestle is an acronym for political, economic, social, technological, legal, and environmental factors or forces that guide planning and decision-making. All in all, it can be observed from the SWOT analysis that Apple Inc. has many strengths, weaknesses, opportunities, and threats. However, its financial performance in 2019 (q1 and q2) has weakened due to the US-China trade wars and some other factors. Swot and Pestle analyses help investors and managers analyze businesses and projects. Apple Inc. can use its strengths to efficiently exploit the opportunities that it has such as expanding its distribution network. Today, one of the most successful products of Apple is the ‘iPhone’. Today, I had time to watch Apple’s World Wide Developers Conference (#WWDC15) keynote today and thought this would be a good time to update my Apple SWOT analysis. The term Swot is an acronym for strengths, weaknesses, opportunities, and threats. Mac sales, on the other hand, have remained comparatively stable. Now let us dig deeper into the SWOT Analysis of Apple Inc. in the following sections. Strengths in the SWOT analysis of Apple. Reasons for the fall might include the fact that when one has already purchased a phone or a tablet, he or she might not feel the need to buy that again when the older one is fully functional already. The innovation made Apple … Apple’s focus on user experience has helped it earn the consumers’ trust. While the iPhone is its leading source of revenue, lower sales of iPhone in 2019 versus the previous year have alarmed the management. If you are planning on making a SWOT analysis document, then this free template is available for you to use whenever you need it. The App Store, Apple Arcade, Apple Music, Apple Podcasts, and iCloud are now available in 20 more countries, and Apple Music is available in 52 additional countries. Otherwise, the brand would have a larger customer base. For some firms market expansion is being particularly difficult in this situation. Still, here are 3 weaknesses which Apple might be facing. It's difficult to predict what will happen to this company in the future, but a SWOT analysis (which measures the strengths, weaknesses, opportunities, and threats to a business) can help to understand the company's current position and where it may go … The company uses paid channels as well as e-commerce platforms for the promotion of its products and services. Apple SWOT analysis 2017 1. One of the major areas of opportunity is granted by the overall trend of increased dependency on technology in this subtle digital revolution that is underway. This propagates that the company may increase the number of products it offers or may offer cheaper products to attract middle or low-income customers. Apple’s product portfolio has continued to grow bigger with time and has expanded from core hardware and software products to include several new services. Abhijeet has been blogging on educational topics and business research since 2016. We hope you liked our SWOT analysis. From q1 2018 to q3 2019, the market share of Samsung has remained at between 21% to 25%. In this area, the brand utilizes a large range of marketing channels and mainly digital marketing channels for promotions. It identifies all the key strengths, weaknesses, opportunities and threats that affect the company the most. Google The most powerful aspect of Google is of course the search engine, indexing system and bots that the world uses to keep the web, the world's most popular source of information. Given below are five strengths of Apple. Offices, schools, and freelance places are all now more dependent on technology than they used to be, and this increased demand for technology does propel the supply to increase to meet the demand. However, Greater China also accounts for a significant part of its earnings. Apple Inc. has evolved fro… SWOT and PESTLE Analysis of Apple. Nearly all of Apple’s hardware products are manufactured by outsourcing partners located mainly in Asia, with some Mac computers manufactured in the U.S. and Ireland. Sales of iPhone reduced in 2019 first and second quarters, compared to the same period last year. Apple’s Strengths. The PC market stabilized a bit in 2018 but again declined in 2019. Whatever, be the reason behind the fall, it is not a great signal. Apple also sells and delivers digital content and applications through the iTunes Store, App Store, Mac App Store, TV App Store, Book Store and Apple Music (collectively “Digital Content and Services”). The following is a detailed SWOT analysis of the Apple Inc: Name UnileverIndustry Consumer goods FMCG (Fast Moving Consumer Goods)Founded 1929HeadquartersRotterdam, the Netherlands London, the United... NameBurger KingIndustryFast food chainFounded1954HeadquarterMiami, Florida, U.S.A CEODaniel SchwartzRevenueUSD 1.78 billion (2019)CompetitorsMcDonald, Wendy’s, KFC    In 2017, the revenue of Apple was recorded around $229,23 billion, which was the largest by any IT company. Apple gained a lot of popularity right during its early days and its focus on research and innovation since then has been high. A large part of the company’s supply chain and manufacturing activities are located in Asia. Swot and Pestle analyses help investors and managers analyze businesses and projects. This report is shared in order to give you an idea of what the complete SWOT & PESTLE analysis report will cover after purchase. Visit us and find ultimate business news and strategy resources. Opportunities influence the strategic direction of business organizations. A significant part of this manufacturing is currently carried out by a small number of outsourcing partners, often in single locations. Apple’s logo makes it an easily recognizable brand. The company enjoyed impressive sales in 2018. You can access a blank SWOT PDF Template here During the fourth quarter of 2018, the market share of the iPhone surged to 47%. 2. SWOT analysis aims to analyse an organization’s internal and external environment, with the purpose of understanding internal organizational strengths for taking advantage of external opportunities, and the purpose of understanding external/internal threats and weaknesses (Panagiotou, 2003, p.8). Apple computer is a strong company. The market environment is also much more challenging now than some years ago. Apple has been able to sustain its premium pricing strategy despite the growing intensity of competition in the smartphone and personal computing industry. One of its most targeted weaknesses is that it has extremely expensive products. Apple Computer Company was founded in April 1976 by Steve Jobs, Steve Wozniak and Ronald Wayne. Patrick Sailsbury Sofia Novo Devon Adams-Martin Shannen Cox 2. It is not just the Chinese firms like Huawei that are on the receiving end. The technology industry has advanced faster in recent years. Today, one of the most successful products of Apple is the ‘iPhone’. Apple Computer Inc. has one of the biggest and most loyal customer bases, who supported the continued growth of the company. iPhone is its leading source of revenue. While the computing industry has been seeing a decline in the recent years, in 2017 and 2018, Apple again started climbing the charts to restore its … The brand values customers’ trust and does everything to retain it. The company is considered one of the most innovative brands on the earth right since its early days. Apple products are sold globally through its retail stores, online stores, and direct sales force, as well as through third-party cellular network carriers, wholesalers, retailers, and resellers. If we take a general SWOT analysis of Google, Apple, and Microsoft, where we all found very successful, how should we evaluate weaknesses and threats? Apple is one of the biggest names in the information technology industry and operating in the market for several decades. The highest profitable technology company and historic trend setter original aspect is hidden from its customers. In this way, it is also one of the leading R&D spenders in the entire industry. Thus, many people with increased incomes prefer to buy Apple products, especially iPhones, because of the image it entails and displays wealth. As a result, it is ranked as the most valuable brand in the world. The trade wars between China and the United States have kept intensifying resulting in higher pressure on both American and Chinese technology firms. Tim Cook is the current CEO of the company. Apple has designed its own ecosystem, and since it lacks Apple’s biggest competitor, Samsung, this is a really strong strength of Apple Inc. Advanced Advertising and Marketing Expertise. In this SWOT analysis tutorial, we will conduct Apple SWOT analysis. Weaknesses in the SWOT analysis of Apple. 1. Overall, SWOT Analysis of Apple shows that the future scenario of Apple Computers does not look bright. Sales of its iPod music player had increased its second quarter profits to $320 (June 2005). Apple’s customers seek performance Opportunities and threats are external factors (Needham et al, 1995). 2. However, its premium pricing strategy is also a reason behind the fluctuation in sales. Tag of innovation – Besides the brand equity, the tag of innovation has always been applied to Apple. Pesetl analysis of apple company Political. They include iPhone, iPad, Mac, Apple Watch, AirPods, Apple TV, HomePod, a portfolio of consumer and professional software applications, iOS, macOS, watchOS and tvOS operating systems, iCloud, Apple Pay and a large range of other accessories, services, and support offerings. However, it remained stuck with its core products for along time. Even Switzerland’s GDP is lesser than Apple’s market cap in monetary terms. Apple is the worlds largest technology firm. Burger King... link to SWOT Analysis of Burger King 2020. SWOT Analysis is a proven management framework which enables a brand like Apple iPhone to benchmark its business & performance as compared to the competitors and industry. Its services include everything from the app store to the licensing deals. Brand equity – Apple is one of the top most companies of the world for its brand equity.From the days of mcintosh computers, Apple is known to be a brand with promise. Apple is the best selling smartphone brand in the United States. The exclusivity of the Apple products faces criticism by customers that complain that not only are their products expensive but are compatible only with other Apple products. Its services revenue is rising steadily and in the next few years, if revenue from services accelerates, Apple could again be number one. Apart from that, the company utilizes third party retailers, resellers and wholesalers also for selling its products in various corners of the world. SWOT Analysis of Apple Inc January 10, 2019 Strengths. 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