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. 2019 Winning Brands - Brand Keys Customer Loyalty Engagement Index. This led to a number of people filing lawsuits against the company. The main reason for Apple’s … 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. Apple has been dominating the technology sector for years now. Apple Inc.’s SWOT Analysis Recommendations. Available at: https://www.interbrand.com/, Forbes (2020). You are welcome! The company is often criticized because a 30% cut is a significant commission for small businesses or app developers. It will become a $27 billion+ market with 233 million unit sales. Why iPhone X Isn't The Answer To Apple's China Problem. 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. It attempts to examine how Apple Inc. has been utilising its strengths and addressing its weaknesses. April 16, 2020; Business; Apple was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne in April 1976. Counterfeit products can make potential customers believe that it is a product made by Apple with low quality. Did you know? 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. Apple charges a 30% cut for in-app purchases through its app-store. In the year 2017, Apple acquired Regaind, a French AI startup and DeskConnect, an AI tool. Apple Swot Analysis – Internal & External Strategic Factors. The main customer base belongs to the upper and the upper-middle classes. An effective marketing of the newly developed device is essential so that it can be targeted among majority of its customers. According to the Wall Street Journal, Kia will begin production by 2024 and produce about 100,000 vehicles in the first year. The youthful population and rapid economic growth in emerging economies offer immense opportunities for expansion. Tracking users undermines trust. It examines the world’s top brands in many industries and how loyal customers are to these brands. The company has not yet implemented or participated in creating. Available at: https://www.idtheftcenter.org, Statista (2019). Consolidated Statements of Financial Position. 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. 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. Smart wearable technology will soon dominate the world. In addition, about 14.5 % of its $274 billion in revenue came from China (a big market for Apple). 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. SWOT stands for strengths, weaknesses, opportunities, and threats. 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. 8. One of the major strengths of Apple inc. is its loyal customer base. In Apple SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors. Form 10-K for the Fiscal Year Ended September 27, 2014. Available at: https://brandkeys.com/wp-content/uploads/, Brand Keys (2016). Apple, Inc. is one of the most successful companies in the world. Apple puts dedication into its product designs. The company has number of strengths along with some weaknesses which … Most parts of an iPhone can be reused. : ). Apple has solidified their grounds by establishing loyal customers, even with limited advertising resources. Available at: https://www.kitco.com/news/. Wrist-Worn Wearables Maintain a Strong Growth Trajectory in Q2 2019, According to IDC. Thank you very much for this analysis SG! You can download your swot instantly after the payment. big news can result in negative reviews and bad publicity for the company. Strengths and weaknesses are internal factors, where as opportunities’ and threats are external factors. Apple was the first to introduce some of the most innovative products that have changed the world (iPhones, iPads). Apple continues to grow its wearable category i.e., Apple Watch, AirPods, etc. 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 (NASDAQ: AAPL) was founded by Steve Jobs and Steve Wozniack in 1976. Powerful brand supported by strong advertising and marketing capabilities. 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. Apple’s retention rates in the smartphone market are the highest among its major rivals. It has millions of loyal customers with steady increment. He's been using his knowledge on strategic management and swot analysis to analyze the businesses for the last 5 years. They might be entering into areas in which they lack competencies; remember the failure of Apple maps. 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. Apple is headquartered in Cupertino, California and was founded by Steve Jobs. In 2019, the company’s net sales through its direct (sales in company’s 508 stores in 25 countries and sale through online stores) and indirect distribution (sales made by third-party sellers) channels accounted for 31% and 69%, respectively.[1]. highly appreciate the time you have put into this thanks man. Smart wearable technology will soon dominate the world. His interest and studies in strategic management turned into SM Insight project, the No.1 source on the subject online. Apple’s ad agency has layoffs as the company beefs up its in-house ads group. There has been a significant change in market penetration by other brands in the smartphone market. It reported flat revenue in Q2 of 2020 and declined to offer annual revenue estimates for FY2020 due to supply chain uncertainties. Well, the credit to the success goes largely to the business analysts who perform a SWOT analysis. Form 10-K for the Fiscal Year Ended December 31, 2018. SWOT Analysis of Apple [Detailed] Apple is a brand that is a favorite of any marketer purely because of the kind of learning you can have from it. Smartphones. Distribution – Apple swot analysis tells us that Apple has 470 of its own stores across 17 countries. Available at: https://www.statista.com/, Christensen, N. at Kitco (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. 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. Apple is one of the biggest names in the information technology industry and operating in the market for several decades. 9. Swot Analysis. ie Apple Watch. 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. The company held this position for over 5 years. Best Global Brands 2019. Available at: https://www.businesswire.com/, IDC (2019). The company was incorporated in 1977. 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. In other words, it creates a competitive advantage no other company can match. It reported flat revenue in Q2 of 2020 and declined to offer annual revenue estimates for FY2020 due to supply chain uncertainties. Available at: https://www.businesswire.com/, Business Wire (2019). He is passionate about analyzing and writing about businesses. 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. Mark Zuckerberg criticized monopoly of iPhone’s app store. One of the most loyal customer base in every major product market where the company operates. Since then, Apple has grown exponentially in terms of products and services. Companies like Samsung, HTC, and Lenovo are using Android software to create new smartphones. With the advancement in technology, brands like Samsung, Google, and Dell are giving Apple tough competition. Available at: https://brandkeys.com/wp-content/uploads/, Samsung Electronics Co., Ltd.(2019). It was founded in 1976 by Steve Jobs, Steve Wozniak, and Ronald Wayne. It identifies all the key strengths, weaknesses, opportunities and threats that affect the company the most. Thank you so much for the hard work :-). To increase its profit margins and have a strong market position, Apple should utilize artificial intelligence. Smartphone Market Share. Strengths; Weaknesses; Opportunities ; Threats. In the fiscal year 2020, iPhone sales of $137 Billion represent half (50%) of apple’s overall revenue of $274 Billion. And clearly, one purpose of autonomous systems is self-driving cars. If you want to find out more about the SWOT of Apple, you’re in the right place. This is why they continue to buy and use Apple’s products even when there are better or cheaper options available in the market. Recently, the company has extended its AI portfolio. Apple is a very successful company. 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. Smart wearable is still a very new category, there are a lot of opportunities to explore and grow here. SWOT Analysis of Apple Inc January 10, 2019 Strengths. 2014 Winning Brands - Brand Keys Customer Loyalty Engagement Index. [3] The company has revolutionized the smartphone market and has created one of the most iconic brands in history. Ce SWOT montre les forces, faiblesses, opportunités et menaces qui impactent le plus les décisions prises par Apple. Available at: https://www.apple.com/, Fortune (2019). Kia Motors to build Apple’s driverless car. Apple is yet to launch products that are created using green technology. 2017 Winning Brands - Brand Keys Customer Loyalty Engagement Index. Tim Cook is the present CEO of the organization. Apple has the opportunity to continue to grow beyond just Apple watch and AirPods into other wearable categories. [1] In 2019, the company introduced three new iPhones: iPhone 11, iPhone 11 Pro and iPhone 11 Pro Max. Apple Inc. can use its strengths to efficiently exploit the opportunities that it has such as expanding its distribution network. Apple competes in a highly competitive industry and has to continuously perform at its best to be able to stay ahead of its competition. Apple has a specific business page that offers top quality technology solutions for every corporation’s needs. Form 10-K for the Fiscal Year Ended September 29, 2012. [9][10][11][12] Although the company has lost the top loyalty position in these markets, it still has some of the most loyal customers in every market it operates. , smart wearable technology device sales will double by 2022. Global Apple iPhone sales from 3rd quarter 2007 to 4th quarter 2018 (in million units). Today it is one of the most valuable companies which consistently surprise and delight its customers. Besides these stores, it sells through trade partners, online channels as well as through other premium retail stores. [1] Mac products include MacBook Air, Mac mini and Mac Pro and run macOS operating system. Entering an Apple owned retail store is a fantastic experience. As an enterprise with a skillset, we have managed to gather the attention of users by conveying a true picture of the company products. China’s smartphone market falls 14% in 2018, with just under 400 million units shipped. Let’s do the SWOT analysis of company Apple get a proper analytic view of the brand’s strengths, weaknesses, opportunities, and threats (SWOT) Darpan Saxena May 13, 2020 7 Min Read Available at: https://www.fastcompany.com/, Fast Company (2018). Apple has become vulnerable to third world countries illegally utilizing the brand image to sell counterfeit products. Arzath Areeff. Apple has the opportunity to focus on delivering self-driving software technology instead of building an actual car like Tesla does. Apple Inc. has the opportunity to expand its distribution network. projects. 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. SWOT Analysis of Apple. Mac products are the second largest company’s product category by revenue, generating 9.9% of the total company’s revenue. Apple is still determined to build and craft better, more proficient technology devices. Thanks Ribana for the kind words ! Due to their premium pricing, only middle or high-class individuals can afford their products. We are just scratching the surface…. It’s probably one of the most difficult A.I. Available at: https://fortune.com/, Interbrand (2019). With the expansion of their team, Apple can continuously build new opportunities. Email: [email protected]strategicmanagementinsight.com. Apple has the expertise needed to deliver self-driving car technology rather than fully-functional autonomous or electric cars. 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. Available at: https://abc.xyz/investor/. 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 Home » SWOT Analysis of Apple. Consumers were upset and baffled when Apple announced that it deliberately throttles CPU performance on iPhone models with older and degraded batteries. Form 10-K for the Fiscal Year Ended June 30, 2019. In the year 2018, Apple sold 217 million iPhones. 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). Customers have to exclusively purchase Apple apps or accessories to continue using their Apple products. Apple sales in China have started recently to decline. Recently, the company has focused its efforts to strengthening its own in-house advertising and marketing teams by attracting a lot of new talented people to the internal agency. Apple AR headset rumors: Apple may release headset in 2022, glasses by 2023. The recent events have significantly affected and disrupted its operations. Available at: https://images.samsung.com, Alphabet Inc. (2019). Currently, the distribution network that Apple has is very limited and leaves room for minimal growth. 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. A management consultant and entrepreneur. 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. Tag of innovation – Besides the brand equity, the tag of innovation has always been applied to Apple. Available at: https://www.globenewswire.com/, PwC (2016). Available at: http://files.shareholder.com/, Apple, Inc. (2014). Apple marketing relies heavily on its iconic and flagship retail stores. Read out this article, to get an understanding of where Apple stands. Apple is highly dependent on China for its manufacturing and supply chain. Contents. 1. 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. According to their latest study,[8] Apple’s brand enjoys the most loyal customer base in the tablet market. Apple SWOT Analysis In A Nutshell. In a recent webcast, Mark Zuckerberg, Facebook’s CEO, criticized Apple for its monopoly on App Store and hefty charges. 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. The company has been providing robust technology products and exceptional software services. Besides, the company’s strong brand and excellent innovation … Sales of its iPod music player had increased its second quarter profits to $320 (June 2005). SWOT Analysis of Apple 2018 #INTRODUCTION: Apple is an innovative technology brand that enjoys very high level of popularity globally. His work is published in many publications, including three books. Available at: https://microsoft. U.S. Dollar can still roar in 2020 even as it ends 2019 with a whimper. I am glad you liked it. projects actually to work on.”. According to Interbrand[4] and Forbes[5], the Apple brand is worth US$234.241 billion and US$205.5 billion, respectively. 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. Glad you liked the analysis. In 2013, one of the original Apple computers was sold for more than $671,400 at German auction. Apple has been expanding its services portfolio for many years. 60 class-action lawsuits have been filed against Apple. 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. Available at: https://www.cnet.com/, Grand View Research (2019). Deliver Self-Driving Software Technology. 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. Available at: https://techcrunch.com/, Johnson, L. at Macworld (2019). Apple, Inc. is one of the most successful companies in the world. The company has been able to achieve such strong brand recognition and reputation through its advertising and marketing capabilities. The internal and external factors discussed in this SWOT analysis indicate that Apple Inc. possesses major strengths to effectively address organizational weaknesses. Apple, Inc. (2019). Here's how. Available at: https://www.forbes.com/, IDC (2019). According to Forbes, smart wearable technology device sales will double by 2022. Liam is designed to yield as many reusable parts as possible. Save my name, email, and website in this browser for the next time I comment. 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.