In 2017, the revenue of Apple was recorded around $229,23 billion, which was the largest by any IT company. 1. The illegal dealers sell Apple counterfeit products at the same value as an original Apple product. Currently, Android has captured 72.23% of the market share, while Apple has only 24.55% of the market share globally. The rest of the companyâs products include wearables, home and accessories, which account for another 9.4% of the revenue and is the fastest growing Appleâs product category, growing by 41% in 2019. Available at: https://www.bankmycell.com, Brand Keys (2019). Wouldn’t you say Apple has taken the opportunity in “smart wearables”? Apple SWOT Analysis In A Nutshell. We're the No.1 source for both free and paid SWOT analyses on the web. Figure 3. It will become a $27 billion+ market with 233 million unit sales. How Does Credit Karma Work and Make Money? 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. [1] Mac products include MacBook Air, Mac mini and Mac Pro and run macOS operating system. Available at: https://www.macworld.com/, Wollerton, M. at Cnet (2019). Available at: https://brandkeys.com/wp-content/uploads/, Samsung Electronics Co., Ltd.(2019). 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. Apple is ranked # 1 for the 8th consecutive year by Interbrand – with a brand value of $322 billion. Since then, Apple has grown exponentially in terms of products and services. In the fiscal year 2020, iPhone sales of $137 Billion represent half (50%) of apple’s overall revenue of $274 Billion. The company designs, manufactures and markets smartphones, tablets, personal computers, wearables and accessories, and offers many related services including financial services. According to the Wall Street Journal, Kia will begin production by 2024 and produce about 100,000 vehicles in the first year. Available at: https://www.fastcompany.com/, Fast Company (2018). Your information is safe and will never be shared. Available at: https://www.canalys.com/, Apple, Inc. (2012). It is a leading personal computing and smartphone brand with a global presence and market-leading position. Apple is headquartered in, Today, one of the most successful products of Apple is the ‘iPhone’. 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. highly appreciate the time you have put into this thanks man. Available at: https://www.interbrand.com/, Forbes (2020). Sustainability made Possible through Liam. As the largest cellular giant, the company understands the importance of user- company interactions. The well known hardware products of Apple Inc are iPod and iTunes. One of the most loyal customer base in every major product market where the company operates. penetration by other brands in the smartphone market. Liam is an iPhone recycling robot that breaks down and dissects an iPhone. All rights reserved. Smartphones. It has millions of loyal customers with steady increment. Customers have to exclusively purchase Apple apps or accessories to continue using their Apple products. 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 sales in China have started recently to decline. This is why they continue to buy and use Appleâs products even when there are better or cheaper options available in the market. The products are priced for middle and high-income consumers. 2018 Annual Data Breach Year-End Review. 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. Retail Stores. The company was incorporated in 1977. Apple Inc.’s SWOT Analysis Recommendations. We are just scratching the surface…. Unique, innovative and easy-to-use products and services that integrate seamlessly into one Apple ecosystem are the reasons why customers buy Appleâs premium products and enjoy using them. thanks… nice study outcome.. tq for the article.. Swot Analysis of Apple. Available at: https://www.cnbc.com/2019, BankMyCell (2019). SWOT analysis of Apple – Apple SWOT analysis This is a detailed SWOT analysis of Apple Inc. For example, about 19% of Apple’s annual revenue ($53 B out of $274 B in FY 20) came from its services, which is the second biggest contributor to its revenue after the iPhone (50% of its revenue). 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. Retention Rates in The Smartphone industry. Apple, Inc. is one of the most successful companies in the world. Available at: https://www.businesswire.com/, Business Wire (2019). 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. It is a major player in the laptop as well as smartphone industry. Brand Keys, a consultancy agency, issues a âCustomer Loyalty Engagement Indexâ study each year. Due to their premium pricing, only middle or high-class individuals can afford their products. In this discussion, I will take you through the SWOT Analysis of Apple and will scrutinize in detailed some interesting insights about Apple. S.K. The company has number of strengths along with some weaknesses which … He's been using his knowledge on strategic management and swot analysis to analyze the businesses for the last 5 years. All the information is supported with data from the most trusted sources. Their brand recognition is supported by its vast product ecosystem. In addition, about. Apple is already planning to expand its music streaming services to 52 emerging markets in Africa and the Middle East. These customers rarely switch to other mobile brands. Apple has diverse products which appeals to different segments of consumers. The recent events have significantly affected and disrupted its operations. Global Casting Devices Market Swot Analysis Of Top Key Player & Forecasts 2027 | Roku, Inc, Apple Inc., AnyCast., Winner Wave TW Limited, Ignite Technologies, Inc., NVIDIA Corporation Data Bridge Market Research February 8, 2021 The demand for autonomous is increasing rapidly. The recent events have significantly affected and disrupted its operations. In the year 2018, Apple sold 217 million iPhones. SWOT Analysis strengths are internal factors that let you overcome weaknesses and take advantage of opportunities in the external environment. Strengths and weaknesses are internal factors, where as opportunities’ and threats are external factors. They provide top quality and cutting-edge technology that offers a breakthrough in customer experience. Consumers were upset and baffled when Apple announced that it deliberately throttles CPU performance on iPhone models with older and degraded batteries. We respect your privacy. Appleâs brand is the worldâs most valuable and recognizable brand. To increase its profit margins and have a strong market position, Apple should utilize artificial intelligence. Brand value is closely related to its recognition, meaning that Apple is also one of the worldâs most recognizable brands. Besides, the company’s strong brand and excellent innovation … The company is often criticized because a 30% cut is a significant commission for small businesses or app developers. Apple puts dedication into its product designs. This SWOT report is ideal for case studies. 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. 6. Except for Google and Samsung Electronics, few other companies could seriously attempt to challenge Appleâs competitive advantage. The main companyâs product is iPhone, which runs on Appleâs iOS operating system and accounts for 54.7% of the total companyâs revenue. [6] These campaigns resulted in two very well-known advertisements â â1984â and âThink Differentâ and helped Apple to create an iconic brand image. TESCO SWOT Analysis 2019 | SWOT analysis of TESCO, Microsoft SWOT Analysis 2019 | SWOT Analysis of Microsoft. The company held this position for over 5 years. Available at: https://www.apple.com/, Fortune (2019). Apple has a specific business page that offers top quality technology solutions for every corporation’s needs. Thank you very much for this analysis SG! One of the major strengths of Apple inc. is its loyal customer base. Microsoft Corporation (2019). I am glad you liked it. Appleâs ability to retain its customers and do it so well brings it a competitive advantage no rival can match. Samsung Electronics, Appleâs strongest competitor, lacks a comprehensive OS and has very few apps and services to offer for its customers. Thank you so much for the hard work :-). Counterfeit products can make potential customers believe that it is a product made by Apple with low quality. And we start to see it as a mother of all A.I. Apple has been expanding its services portfolio for many years. It identifies all the key strengths, weaknesses, opportunities and threats that affect the company the most. Consolidated Statements of Financial Position. Form 10-K for the Fiscal Year Ended September 27, 2014. An effective marketing of the newly developed device is essential so that it can be targeted among majority of its customers. 2016 Winning Brands - Brand Keys Customer Loyalty Engagement Index. For more information on how to do a SWOT analysis please refer to our article. iPad category, which includes iPad, iPad Pro, iPad Air and iPad mini products, accounts for 8.2% of the total Appleâs revenue. Smart wearable is still a very new category, there are a lot of opportunities to explore and grow here. Apple’s products can be considered a luxury due to their premium prices. Available at: https://www.cnet.com/, Grand View Research (2019). 9. Form 10-K for the Fiscal Year Ended September 30, 2019. Apple Strengths in SWOT Analysis. © 2013-2020 SM Insight. 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. Counterfeit products can make potential customers believe that it is a product made by Apple with low quality. 2019 Winning Brands - Brand Keys Customer Loyalty Engagement Index. SWOT Analysis for Apple Strengths Product leadership High quality products Easy-to-use products Superior product design Effective new product development process Ability to leap-frog competitor’s technology Highly innovative IT/software expertise High profit margins … Smart wearable technology will soon dominate the world. Today, one of the most successful products of Apple is the ‘iPhone’. The company was established in April 1, 1976 by Steve Jobs. Thanks Ribana for the kind words ! 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. With the advancement in technology, brands like, As the competition is getting stronger, Apple either has to introduce new technologies or. Moreover, the company can use its strong brand image and rapid innovation processes to successfully develop and launch new product lines. Arzath Areeff. The Apple is one of the leading firms in its industry. 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. According to their latest study,[8] Appleâs brand enjoys the most loyal customer base in the tablet market. Apple has the expertise needed to deliver self-driving car technology rather than fully-functional autonomous or electric cars. 9. Apple has partnered with Kia Motors (parent company – Hyundai) to assemble driverless electric cars in Georgia. Apple Inc. does not fail to impress the customers with its products and services. Smartphone Brand Loyalty Statistics (2019). Ce SWOT montre les forces, faiblesses, opportunités et menaces qui impactent le plus les décisions prises par Apple. The Wearable Life 2.0. Apple has been accused of using tracking apps in its phones, which revealed the precise location of users. Gupta understands how to create and implement business strategies. This gives comfort to me as an investor to be part of this firm. It’s probably one of the most difficult A.I. Apple was the first to introduce some of the most innovative products that have changed the world (iPhones, iPads). This led to a number of people filing lawsuits against the company. Available at: https://fortune.com/, Interbrand (2019). ie Apple Watch. Smart wearable technology will soon dominate the world. Strengths; Weaknesses; Opportunities ; Threats. Apple SWOT analysis: Threats. SWOT Analysis of Apple Inc. Apple Inc. is a manufacturing company of consumer electronics and software products. Available at: http://files.shareholder.com/, Wang, Y (2017). The youthful population and rapid economic growth in emerging economies offer immense opportunities for expansion. Available at: https://www.productchart.com, IDC (2019). The internal and external factors discussed in this SWOT analysis indicate that Apple Inc. possesses major strengths to effectively address organizational weaknesses. Furthermore, the company can benefit from diligent marketing and promotions. Today, one of the best results of Apple is the ‘iPhone’. The company has been providing robust technology products and exceptional software services. Available at: https://www.globenewswire.com/, PwC (2016). Wearable Devices Market worth $62.82 billion by 2025- Exclusive Report by Meticulous Research. Read out this article, to get an understanding of where Apple stands. You can download your swot instantly after the payment. According to Interbrand[4] and Forbes[5], the Apple brand is worth US$234.241 billion and US$205.5 billion, respectively. April 16, 2020; Business; Apple was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne in April 1976. These reusable parts are then categorized and safely stored so they can be used for new manufacturing. Share your thoughts and experiences in the comments section below. Mark Zuckerberg criticized monopoly of iPhone’s app store. Customer loyalty combined with expanding closed ecosystem. According to Forbes, smart wearable technology device sales will double by 2022. Available at: https://www.researchandmarkets, Merel, T. (2017). Available at: https://www.idc.com/, Globe News Wire (2019). Low-Income consumers can’t simply afford Apple 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. Tell us what you think? It attempts to examine how Apple Inc. has been utilising its strengths and addressing its weaknesses. Appleâs 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. Most parts of an iPhone can be reused. Apple Inc. has the opportunity to expand its distribution network. Intelligent Virtual Assistant (IVA) Market Size, Share & Trends Analysis Report. SWOT Analysis of Apple Home » SWOT Analysis of Apple. Why iPhone X Isn't The Answer To Apple's China Problem. [3] The company has revolutionized the smartphone market and has created one of the most iconic brands in history. The company has not yet implemented or participated in creating sustainable technology that is eco-friendly. On a Bloomberg interview, Apple CEO Tim Cook says: ” We are focusing on autonomous systems. The World's Most Valuable Brands. Form 10-K for the Fiscal Year Ended June 30, 2019. 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. Swot Analysis. In Apple SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors. Available at: https://www.idc.com/, Research and Markets (2018). Vielmehr soll es dir die SWOT Analyse Schritt für Schritt anhand eines realen Beispiels näherbringen. Darpan Saxena May 13, 2020 7 Min Read [7], Figure 2. It is a useful technique to map out the present Strengths (S), Weakness (W), Opportunities (O) & Threats (T) Apple is facing in its current business environment. This report closely examines Apple’s strengths, weaknesses, opportunities, and threats. thank you so much for your hard work man <3. Currently, the distribution network that Apple has is very limited and leaves room for minimal growth. Apple’s services include digital content stores, streaming services, iCloud, AppleCare etc. 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. Apple is a multinational company that is jointly owned by Vanguard Group and BlackRock, both being institutional investors. Apple competes primarily on price, product and service features, quality and reliability, design innovation, a strong third-party software and accessories ecosystem. The reality of VR/AR growth. Entering an Apple owned retail store is a fantastic experience. Brand Keysâ Customer Loyalty Engagement Index (Appleâs market leader positions 2014-2017). Available at: http://files.shareholder.com/, Apple, Inc. (2014). It reported flat revenue in Q2 of 2020 and declined to offer annual revenue estimates for FY2020 due to supply chain uncertainties. Chinaâs smartphone market falls 14% in 2018, with just under 400 million units shipped. In the year 2017, Apple acquired Regaind, a French AI startup and DeskConnect, an AI tool. In other words, it creates a competitive advantage no other company can match. 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. Customers praise the companyâs products for their innovation, design, ease-of-use, reliability and the status they convey. Apple Swot Analysis – Internal & External Strategic Factors. 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. Unique ability to design and develop proprietary hardware, software, applications and services. 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. Apple’s researchers, developers, and product specialists are a team of highly qualified professionals that have years of experience in branding consumer products. Apple has the opportunity to focus on delivering self-driving software technology instead of building an actual car like Tesla does. With the expansion of their team, Apple can continuously build new opportunities. Glad you liked the analysis. Apple is one of the biggest names in the information technology industry and operating in the market for several decades. Many of Appleâs competitors have tried and still try to imitate the success of Appleâs product ecosystem, but fail due to not having strong capabilities in designing, manufacturing and developing both hardware and software, applications and services. Apple has the opportunity to continue to grow beyond just Apple watch and AirPods into other wearable categories. Join our newsletter today to get updates on the latest posts! While the laptop industry saw a slowdown in the recent years, the smartphone industry has kept growing faster. Available at: https://www.idtheftcenter.org, Statista (2019). The company should focus on extending its AI portfolio to have a strong foothold in the future. This example SWOT was generated using the SWOT analysis Excel template that you can download for free on this website. Thank you for this, I now have hope ! As the competition is getting stronger, Apple either has to introduce new technologies or revise its pricing policy to stay ahead of its competition. Apple Inc. can use its strengths to efficiently exploit the opportunities that it has such as expanding its distribution network. 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. All rights reserved | contact@bstrategyhub.com | Logo designed by Looka. This Apple SWOT analysis reveals how one of the most successful worldâs companies used its competitive advantages to become the dominant player in the tech industry. Here's how. And clearly, one purpose of autonomous systems is self-driving cars. For example, about, Apple’s services include digital content stores, streaming services, iCloud, AppleCare etc. Best Global Brands 2019. Available at: https://www.statista.com/, Christensen, N. at Kitco (2019). Apple has solidified their grounds by establishing loyal customers, even with limited advertising resources. iPhone App Store ” blocks innovation, blocks competition,” and “allows Apple to charge monopoly rents.”. There are huge opportunities for this company, and there are major threats from the competitors as well. Apple is one of the most reliable company when it comes to personalized advanced computers and smart technology devices. Following the SWOT strengths of Apple Inc. SWOT Analysis of Apple 2018 #INTRODUCTION: Apple is an innovative technology brand that enjoys very high level of popularity globally. Apple Inc.âs 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. Email: [email protected]strategicmanagementinsight.com. … Liam is designed to yield as many reusable parts as possible. 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. [1] In 2019, the company introduced three new iPhones: iPhone 11, iPhone 11 Pro and iPhone 11 Pro Max. Worldwide Wearables Market to Top 300 Million Units in 2019 and Nearly 500 Million Units in 2023, Says IDC. Companies like Samsung, HTC, and Lenovo are using Android software to create new smartphones. Loyal Customer Base. Available at: https://images.samsung.com, Alphabet Inc. (2019). Augmented Reality and Virtual Reality Market by Offering, Device Type, Application, and Geography - Global Forecast to 2023. Appleâs retention rates in the smartphone market are the highest among its major rivals. Apple, Inc. is one of the most successful companies in the world. SWOT analysis is a strategic planning tool that can be used by Apple managers to do a situational analysis of the company. iPhone App Store ” blocks innovation, blocks competition,” and “allows Apple to charge monopoly rents.”. Available at: https://brandkeys.com/wp-content/uploads/, Brand Keys (2016). Did you know? The favourable brand perception had also increased sales of Macintosh computers. Besides these stores, it sells through trade partners, online channels as well as through other premium retail stores. Wrist-Worn Wearables Maintain a Strong Growth Trajectory in Q2 2019, According to IDC. Despite the clarification, consumers felt betrayed because they that Apple does not believe in transparency. Global Apple iPhone sales from 3rd quarter 2007 to 4th quarter 2018 (in million units). As an enterprise with a skillset, we have managed to gather the attention of users by conveying a true picture of the company products. In 2019, the companyâs net sales through its direct (sales in companyâs 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]. big news can result in negative reviews and bad publicity for the company.