Apple Inc. is a multinational company that mainly designs, manufactures, sells and market consumer electronics and services. However, with time its focus upon user experience as well as research and innovation has only grown. This product is quite popular and accounts for about 54.7% of its revenue. SWOT and PESTLE Analysis of Apple. 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. Burger King... link to SWOT Analysis of Burger King 2020. The brand also invests a large sum each year in advertising. Because his creative genius has moved all stones of industry. Apple enjoys a very large and loyal customer base spread throughout the globe. Apple still has not been able to move very far from its core products like iPhone, Mac, and Ipad. The major weakness is its less distribution network, its high price, and its market segment. There was again a major difference in the net sales of iPhones during the second quarter of fiscal 2018 and 2019. Ruko, Amazon and Google are the strong competitors of Apple TV. Another threat to the company may be the fear that its products can be imitated. Android phones are giving a tough time to iPhone. Read more: What Is A SWOT Analysis, Amazon SWOT Analysis, Gennaro is the creator of FourWeekMBA which target is to reach over two million business students, executives, and aspiring entrepreneurs in 2020 alone | He is also Head of Business Development for a high-tech startup, which he helped grow at double-digit rate | Gennaro earned an International MBA with emphasis on Corporate Finance and Business Strategy | 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. This argument suggests that sales might slow down. Various technology and financial services. Microsoft Excel® is registered trademark of Microsoft Corporation. Apple is a big player in the tech industry and always wants to fly high. 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.You can access a blank SWOT PDF Template here. Even if people want the freedom to customize their phone, it seems that Apple wanted absolute control to produce the best. It is a recommendation in Apple SWOT Analysis to expand its distribution channel reach potential customers in the global market. With an innovative launch strategy, headphones, earphones, cases, watches, chargers will continue to be part of our lifestyles. The purpose of this article is to explain the major strengths, weaknesses, opportunities and major threats from competitors and give you a general perspective on the company. Smart wearable technology has started to dominate the world and will double by 2022. The following provides you a gist of the company: Apple is one of the largest technology company in terms of revenue and a valuable company with regards to brand value and market capitalization worldwide. But they have taken existing things to made them work well while looking good. Though Apple Inc. has some great success stories. Its services include everything from the app store to the licensing deals. There are crucial processes such as accounting, tracking in your e-commerce business. It enjoys huge profit margins on almost all its offerings. Let's find out Apple's strengths, weaknesses, opportunities & threats with a PDF Template. How Does Google Make Money? We will try to find out major Apple’s strengths, weaknesses, opportunities and threats that affect its performance positively or negatively. Apple SWOT analysis . Facebook Hidden Revenue Business Model Explained, What Is a Business Model? Having a wide range of products, the company grows to great heights and its products are being acknowledged by the users. A few days back in September 2018, Apple has introduced Apple Watch Series 4, it is redesigned having more communication, fitness and health. From q1 2018 to q3 2019, the market share of Samsung has remained at between 21% to 25%. The level of financial investment in research and development at Apple has grown sharply during the last three years. In this area, the brand utilizes a large range of marketing channels and mainly digital marketing channels for promotions. Apple has been able to sustain its premium pricing strategy despite the growing intensity of competition in the smartphone and personal computing industry. There is a number of strategies that Apple uses to create its competitive advantages over other companies.. Its focus upon product quality and innovation, established the brand as a leader in computing technology right during its early days. When the new model of Apple comes out, the rest of the industry watch and learn what they are doing and at the end – copy it. If you disable this cookie, we will not be able to save your preferences. One of the leading strengths of Apple is its strong brand image. Other technology giants including Apple have also found their operational costs increasing due to the growth in tariffs. But it is still a critical issue for Apple because they can not stop Samsung from becoming the most powerful brand in the industry. It is best to admit them quickly, and get on with improving your other innovations. To make its position and competitive advantage stronger and to enjoy more stable sales annually, the company should seize the opportunities created by emerging technologies. Sales of iPhone reduced in 2019 first and second quarters, compared to the same period last year. Apple is one of the big four players in the technology industry. For example, in China, India and Pakistan people are switching to android phones like Samsung due to its high specs and considerably low price. Thus, many people with increased incomes prefer to buy Apple products, especially iPhones, because of the image it entails and displays wealth. Even if some of us think that “Oh, Apple products are so expensive, I am not gonna buy them”, for many people Apple is one of a kind and worth its cost. Because if the big companies like Apple can change, then maybe the whole consuming behaviors of us can change too. Though Apple is working to open up new markets as an opportunity, it has to make sure to sustain its stores’ sales. Spotify Business Model In A Nutshell, The Trillion Dollar Company: Apple Business Model In A Nutshell, How Does Facebook Make Money? Product quality, user experience, innovation, marketing, and customer engagement are the reasons that enabled Apple to win a large and loyal customer base from all over the world. It ensures that only the suppliers who offer the best quality raw materials are a part of its supply chain. This affects revenue negatively and profits as well. Its advertising costs are included in its selling, general and administrative expenses which reached $16.7 billion in 2018 (Annual report, 2018). They are treating their workers unfairly; they are giving them extensive shifts, not enough Profit margins on most products and particularly the iPhone, which is Apple’s leading revenue generator is quite high. The …, PayPal is an American online payment system company. Apple is considered the master of advertising since the old days of Steve Jobs. This enables the building of brand loyalty and confirms future customers. The company enjoyed impressive sales in 2018. The company put a lot of effort to enhance the user experience with many accessories and gadgets besides the product.