Apple SWOT Analysis

Apple Inc. is a multinational company that mainly design, manufacture, sell and marketing of consumer electronics and services. Apple Computer Company was founded in April 1976 by Steve Jobs, Steve Wozniak and Ronald Wayne. In this SWOT analysis tutorial we will conduct apple SWOT analysis. We will try to find out Apple strengths, weaknesses, opportunities and threats that affect the apple performance positively or negatively.

Apple Strengths in SWOT Analysis

SWOT Analysis strengths are internal factors that let you overcome weaknesses and take advantage of opportunities in the external environment. Following the SWOT strengths of Apple Inc.

Loyal Customer Base. Key Apple strength is its loyal customer base. These customer are rarely switch to other mobile brands. The main reason of apple loyal customer base is it unique customer experience, simplicity and innovation. Apple has an outclass 87% brand loyalty across the US and European countries.

Brand Value and Reputation. Over the years Apple has recognized itself as the second most valuable brand in the world following behind Google. Apple brand value reached to $300.6 billion by 2018. In 2006 its brand value was merely 15.98 billion U.S dollars.

Innovation and Simplicity. Simplicity is in the DNA of this company. “Apple revolutionized the business of PCs, music, telephones and Tablets because everything revolved around and search for simplicity.” Apple products are simple and easy to use. Apple is always considered as most innovative company in the.

Though the brand is simple but innovative product line is considered as major strength of Apple. For example, they introduced Ipod, Macbook, iPhone and iPad. Every time Apple came up with innovation and simplicity.

Advertising and marketing. Apple is considered the master of advertising since the old days of Steve Jobs. According to Communicus.com, Apple advertising perform better by creating a buzz about its upcoming products and upgrades. Its advertising is so powerful that create a word of mouth campaign to build a better brand perception and increase the product desire.

High Profit Margin. If we look at the pricing element of marketing mix, Apple is charging premium pricing strategy. Even with the low sales volume, it can avail high profit margins and can invest in the brand building and Research and development activities. By doing this, Apple can not only increase brand awareness but also embrace technological advancement to keep competitive advantage over its competitors.

Apple Weaknesses in SWOT Analysis

Narrow Product Line. Apple product portfolio comprising 6 to 7 products. In this case it has a limited portfolio as compared apple competitors like Dell, Samsung and Microsoft. Every product is contributing a portion to the overall revenue. Due to any reason if a product was unable to generation its portion of revenue, it can affect apple revenue stream. Limited number of product line is major weakness of apple.

High Customer Expectations. From the beginning, Apple revolutionized tech market and customer expectation are on top. Customers expect hardware and software updates in every updated version of apple products and services.  It is difficult to meet these expectations all the time.

Premium Pricing. Apple Inc. is able to charge premium pricing and generate higher profit margin. On the other hand price conscious customers switching to other brands like Dell and Samsung with same specs products with reasonable prices. From example in China, India and Pakistan people are switching to android phones like Samsung due to its high specs and considerably low price.

Apple Opportunities in SWOT Analysis

In this tutorial “SWOT Analysis of Apple” will discuss opportunities. For any business SWOT opportunities are external factors that can affect the organization performance. Following are the Apple Opportunities.

Apple Electric Car Project. Apple is a big player in the tech industry and always want to fly high. The car project is known Codename “Titan” undergoing Research and Development phase. According to Wikipedia there are rumors that Apple might enter in the automobile market in 2020. Mostly Apple does not reveal any information of undergoing project. But it is a huge opportunity for Apple to step in the Automobile industry.

Apple Watch. Apple watch series 1 was introduced back in 2015 and became a bestselling wearable device. Few days back in September 2018, Apple has introduced Apple Watch Series 4, it is redesigned having more communication, fitness and health. This watch series will increase its current market share of digital watches.

Apple TV. Apple TV is another great opportunity Apple should utilize. Apple TV competitors include Ruko, Amazon and Google. So far Apple has captured on 15% share, but it should not lose this opportunity.

Distribution Network. Apple has the opportunity to expand its current distribution network. Limited distribution is a weakness for any company. It is a recommendation in Apple SWOT Analysis to expand its distribution channel reach potential customer in the global market.   

Apple Threats in SWOT Analysis

Though Apple Inc. has some great success stories. It have great numbers in financial and markets. But still Apple has threat and should be tackle strategically.

Apple TV Competition. One of the strongest threats to Apple is competitors of Apple TV i.e. Amazon, Raku, NVidia, Google and many more. These streaming devices are giving Apple a tough time in the Streaming Device competitions. Apple is so far able to avail only 15% market share.

Laptop Competition. One of the key threat to Apple is Dell which is a  primarily computers manufacturer. Dell has introduced the best Laptop Model like XPS which is giving a tough competition to MacBook. Lenovo is another competitor of Apple in the laptop segment. HP is another name produces affordable computer product for consumer around the globe.

Smartphones Competitors. There is no doubt that Apple best product is iPhone but unable to dominate the market. One of the alarming threats to apple from smartphone segment is a South Korean Company Samsung which is producing Samsung Galaxy and Notes. Over the years Android Samsung was able reduce iPhone sales.  Both having a tough fight but Samsung produces different types of smart phones that cover all budget level. Other android smartphone include Oppo, HTV, Sony Xperia. Android phones are giving a tough time to iPhone.

I have tried to provide details of internal and external factors in SWOT analysis of Apple.

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