This can damage both the reputation of the brand and customer loyalty when people realize they have been scammed into buying inferior goods. Form 10-K for the Fiscal Year Ended June 30, 2019. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Create a free website or blog at WordPress.com. Apple has taken note of this trend, developing a strong focus on AI and creating its own AI platform, Siri. . Form 10-K for the Fiscal Year Ended December 31, 2018. SWOT analysis of Apple Apple's Strengths 1. [6] These campaigns resulted in two very well-known advertisements 1984 and Think Different and helped Apple to create an iconic brand image. } The potential for government agencies to access user data stored on the iPhone through backdoor mechanisms is a significant threat facing Apple. It became the companys second largest market in 2011 and is the only country besides the U.S. that generates over 10% of its revenue. Dependence on a few key products: While Apple has a diverse range of products, the company heavily depends on a few key products, such as the iPhone. width: 82%; While Apple has many strengths as a brand, there are also some weaknesses that the company faces: 1. [7], Figure 2. } One of the main factors contributing to this wearable market increase will be the demand for health-related wearables. Apple needs to focus more on. Apple have the ability to take over the technology industry, however I feel their supremacy will not be boosted by taking over the music streaming. A decline in the global economy or a significant shift in exchange rates could harm Apples sales and profitability. Apple Computer are expert in Developing own software and hardware. window.mc4wp = window.mc4wp || { Available at: Brand Keys (2016). Changing consumer preferences: Consumer preferences and trends can change quickly, impacting the demand for Apples products. Apple is finding it very hard to differentiate its iPhones through incremental hardware improvements, as are other smartphone manufacturers. Apple SWOT Analysis 2023: If you're looking at this post, you're reading it using an Apple device. 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. This Apple SWOT analysis reveals how one of the most successful worlds companies used its competitive advantages to become the dominant player in the tech industry. Business Model Examples and Types Using the Business Model Canvas for Detailed Analyssis One area of growth potential for Apple lies within its iAd advertising program, a now discontinued service designed specifically for iPhone, iPad, and iPod touch users that allow advertisers to display ads across all iOS devices worldwide. Most businesses try to diversify their revenue sources for a few reasons. Apple, therefore has hundreds of millions of user records that could be stolen. } Available at: Product Chart (2020). Available at: Christensen, N. at Kitco (2019). It was the first company to have a market cap of over $2 trillion, and has shaped our world. #text-292481563 { Figure 3. Apples ability to retain its customers and do it so well brings it a competitive advantage no rival can match. } padding: 0 0px 0px 0px; The Wearable Life 2.0. This Apple SWOT Analysis can assist us in understanding the factors that make Apple an iconic brand in the technology industry. [20] Since 2012, the company has been awarded the most innovative company title only once. Few threats are posing real danger for the company. Several reports have emerged accusing iPhone of threatening to withdrawal their support on specific music labels. A flagship device that is capable of supporting AR; Apple, Inc. (2019). Apple AR headset rumors: Apple may release headset in 2022, glasses by 2023. Apple is operating in the technology industry where competition is often based on patents. Available at: Wollerton, M. at Cnet (2019). Concepts According to the report, its annual revenue reached $260.174 billion in 2019. Integration of AI and machine learning: Artificial intelligence and machine learning are becoming increasingly important in the tech industry, and Apple has an opportunity to integrate these technologies into its products and services. According to Interbrand[4] and Forbes[5], the Apple brand is worth US$234.241 billion and US$205.5 billion, respectively. This means that Apple currently receives a large share of its profits in currencies other than the U.S. dollar. color: rgb(255, 255, 255); Apples major weakness is its reliance on one product to generate the majority of its revenue. Apple music debuts music at 256kpbs which is although the same as iTunes. A report from Meticulous Research predicts that the global wearable medical devices market will reach US$62.82 billion by 2025.[31]. It will be a very useful appearance of resolution for recognizing the strengths, weaknesses, opportunities, and threats of the Apple company. The software comes pre-installed on all Apple music devices whilst also available as a free download. Apple Computer Company was founded in April 1976 by Steve Jobs, Steve Wozniak and Ronald Wayne. #section_1771581351 { the iPad, and Apple Music, amongst others. Apple Inc. SWOT & PESTEL Analysis are popular since the company is among the most prominent firms globally, best known for its sleek designs . SWOT Analysis: Strengths: Apple is a renowned and trusted tech brand, with a strong customer base and loyal following. @media (min-width:550px) { Strong marketing: Apple is known for its effective marketing campaigns that focus on the benefits of its products and the emotional connection customers have with the brand. The service includes curated internet radio such as Beats 1 which is driven by the respected Zane Lowe and his hand picked team of renowned DJs. Claims against the Company based on allegations of patent infringement or other violations of intellectual property rights have generally increased over time and may continue to increase. A SWOT analysis is a strategic planning tool used to evaluate the Strengths, Weaknesses, Opportunities, and Threats of a business, project, or individual. 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 company has already released successful Apple Watch devices. A swot analysis is a widely used technique used for analysis, the term swot is an acronym and it allows you to understand the strengths, weaknesses, opportunities and threats of a given project or business of your choice. Another threat facing Apple is recessionary economic downturns that could significantly reduce demand for their products amongst consumers who may no longer be able to afford them due to job losses or pay cuts experienced during these times. . There are many external forces that can negatively affect product sales and companies have no control over those external forces. If Android will become as good as iOS in delivering a great customer experience, iPhones unique selling proposition will disappear. Available in 100 countries as opposed to 58 for Spotify. Smartphone commoditization will put pressure on margins, but there are some ways Apple could differentiate its phones from rivals offerings and keep the current margins. The company receives US$142.381 billion or 54.7% of its total revenue from iPhone sales alone. Press Esc to cancel. Chinas market isnt the most lucrative in terms of profit, but it is the largest and the market share in Chinese smartphone market is vitally important for the future success. How about the virtual reality market? Based on the internal aspect of SWOT analysis, Apple's pricing and over-dependency on certain products impose restraints in the business. Strength: iTunes Music Store is a excellent source of revenue, especially with the iPod and the accessibility on Windows platform. } Apple Inc. has been experiencing a few problems due to media coverage on various aspects of its company. [1] In 2019, the company introduced three new iPhones: iPhone 11, iPhone 11 Pro and iPhone 11 Pro Max. Iniciar sesin Registrate. } Mature markets: as Apple music is part of the mature market community it will therefore be challenging to sustain their growing market. This is why they continue to buy and use Apples products even when there are better or cheaper options available in the market. Focus on differentiation through constant innovation. Government attempts to force Apple into unlocking iPhones for law enforcement, and intelligence-gathering purposes present huge vulnerabilities, putting users private information at risk. As one of the most innovative tech giants of the modern era, along with Amazon and Google/Alphabet Inc., Apple continually sets new trends when it comes to technology development. padding-top: 20px; Save my name and email in this browser for the next time I comment. Similarly, their services, such as iCloud storage and iTunes, also have higher prices than competitor versions. Siri is also only available on the Apples products such as the iPad, iPhone and Apple Watch. Retail Stores. Limited Advertisement & Promotions 3. Founded by Steve Jobs and Steve Wozniak in 1976, Apple has become one of the worlds most recognizable and valuable brands. If Apple wishes to continue dominating the industry, it must actively innovate and invest more deeply in research and development; failure to do so risks further losses in its market share as it falls behind its challengers. The goal of a SWOT analysis for Apple is to determine the numerous elements that have contributed to the company's unrivaled success. 2016 Winning Brands Brand Keys Customer Loyalty Engagement Index. This has increased the sales of the company by great margins. There are several opportunities for the Apple brand that the company could take advantage of to grow further and expand: Overall, Apple has many opportunities to continue to grow and innovate, and the company has the resources and expertise to take advantage of these opportunities. Companies engage in R&D so they can introduce innovative products and services that satisfy ongoing consumer needs for newer and better offerings. iPad category, which includes iPad, iPad Pro, iPad Air and iPad mini products, accounts for 8.2% of the total Apples revenue. #col-1977637032 > .col-inner { The SWOT report depicts all micro and macro factors and influencers that have a tremendous impact on Apple's business model, business, and marketing strategies. Google has a similar devices, but with greater capabilities due to their Assistants connection to a wider range of devices. { . IDC (2019). Change), You are commenting using your Twitter account. 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