Apple is a multinational technology company in the USA which specializes in consumer electronics, software, and online services. It is the largest technology company in the world since January 2021. Steve Jobs, Steve Wozmark, and Ronald Wayne established Apple on 1 April 1975 in California, USA. An Apple SWOT analysis helps the company executives to analyze and access all the internal and external factors of the community.
Apple – At A Glance
|Company Name||Apple Inc.|
|Founded||1 April, 1976|
|Founders||Steve Jobs, Steve Wozniak, Ronald Wayne|
|Headquarter||1 Apple Park Way Cupertino, California, U.S.|
|Annual Revenue||$274.515 Billion (FY 2020)|
Apple SWOT Analysis
The SWOT Analysis of Apple is a vital strategic planning framework that can be used by Apple managers to do a situational analysis of the company. It will be a very useful appearance of resolution for recognizing the strengths, weaknesses, opportunities, and threats of the Apple company. An Apple SWOT analysis will help to build a good structure to address what things the company is lacking. By conducting a SWOT analysis, this company will minimize the risks and can take the greatest possible advantages for gaining success.
Apple maintains its intimidating presence in the business sector only by reviewing the SWOT analysis regularly and improving itself. So, an Apple SWOT analysis will be of great use for this company.
The Apple company can pinpoint its competitive assets and its competitive liabilities. It can also help the company to identify the resources, strengths and identify the company’s best marketing opportunities.
Strengths of Apple in SWOT Analysis
Among all the leading brands of the era, Apple is one of the best. It has retained its leadership position in the market successfully. It has a reputation of strengths in the market. Apple Inc. has a plethora of strengths that will help it to thrive in the main field. An Apple SWOT analysis will help to focus on these strengths. An Apple SWOT Analysis will help to recognize and focus on these strengths. Some of the strengths are enlisted below:
World’s strongest brand: Apple is now the world’s number 1 brand for the 8th consecutive year with a brand value of $322 Billion. It is one of the most reliable companies when it comes to personalizing advanced computers and smart technology devices. It was the first brand to introduce some of the most innovative products.
Innovation solely based on Technology: For all, we can remember Apple has a strong foot in the industry fueled solely by technology. The inevitable strength of Apple has been showering the industry with one after another hit technological goods. It firstly comes with the MacBook then the iPod, iWatch. To sum things up, Apple has got it covered when it comes to any desire a man can come up with.
Very high-profit margin: Apple is one of the leading companies when it comes to earning profit. It has a large array of products that are sold all over the world. Since people around the world simply adore their products, every time a new gadget is released people rush to buy it. Recently, Apple has started to sell its iPods and chargers separately, this has also helped them to maintain higher profit margins.
Expanding their Consumer End: All over the globe, Apple has sole proprietorship of 470 companies and 17 different stores. The company also launched the genius bar to directly solve customer issues. It is a great strong point for Apple.
Global reach: Apple is a worldwide multinational company. It operates in more than 160 countries across the globe. So, it has a great deal of the global footprint. This makes it more recognizable to the public and helps with its publicity. So, it can implement its global thinking with local execution. This means that it can pursue its ubiquitous goals and can still win the hearts of its consumers.
Weaknesses of Apple in SWOT Analysis
Weakness is any resource or process by which the internal business lacks can be recognized. As a part of strategic planning, and Apple SWOT analysis will bring these points as weaknesses:
Products being high priced: The Apple company’s products can be considered a luxury due to their premium pricing, only middle- or high-class people can afford their products. Low-income buyers can’t simply afford Apple products.
Tracking Allegations: In iPhones, Apple has been accused of using tracking apps in its phones which revealed the location of the users. Even though in the latest version Apple’s phones give users the right to decline the tracking.
Software Incompatibility: Apple products do not support other software or technologies making them incompatible with other devices. Customers need to exclusively purchase Apple Apps to continue their use.
Opportunities for Apple in SWOT Analysis
Opportunities are external favorable factors that could give an organization a competitive advantage and protect against risks. An Apple SWOT analysis will help the executives to settle upon them before their next big step. Some of these are enlisted below:
Customer growing rate constantly: For many years, Apple is dominating the technology sector. Top-quality and cutting-edge technology are offering a breakthrough in customer experience. Their customer retention rate of 92% is growing up day by day.
Using green technology: In the new term of innovation, Apple is yet to launch products that are being created using, friendly. Apple has not yet participated in creating sustainable technology.
Uses of artificial intelligence: Using artificial intelligence in the sectors, Apple will be a great opportunity of keeping their height. The company should utilize artificial intelligence. Recently, the company has extended its AI portfolio.
Innovating of Apple’s Driverless Car / iWatch / Apple TV: Apple is focusing on delivering self-driving software technology. The demand for autonomous cars is increasing rapidly. The company has the expertise needed to deliver self-driving car technology rather than electric cars.
Threats for Apple in SWOT Analysis
The most important part of the analysis is threats. An Apple SWOT analysis will point out the threats to this community that has been holding it back:
Increasing Competition: The brand Apple has solidified itself. It is continuously facing threats from its competition. Brands like Samsung, Google, Dell is creating competition with Apple.
Penetration in the market: A very significant change in the market penetration by another brand in the mobile market. Many companies like Samsung, HTC, and Lenovo are using Android software and creating new smartphones. Currently android has captured 72.23% of the market. While Apple has only 24.55% of the market share globally.
Risk of a significant trade war: As Apple is producing its products in Asia and Apple’s main market in North America. This can create a trade war between Apple and the other brands and Apple would be at a loss. This trade war can make Apple less purchasing brand than another brand.
Impact of Pandemic: This is the time of pandemics. Apple is one of the leading companies in the consumer goods department. Even though this pandemic has failed to make any big impact on the sales figure, that does not mean that the magnitude of the situation is any less. This pandemic has affected the manufacturing, distribution, and purchasing of Apple products. This has fueled major changes in Apple’s business strategies. The experts are thinking this may affect the post-pandemic sales rate.
Apple SWOT Analysis Overview Template
Conclusions & Recommendations for Apple
Here are some recommendations for Apple to improve their market game from the experts:
- Expanding the business and spreading the business to rural areas.
- Collaborate with the business with cryptocurrency so that customers can buy their products by exchanging cryptocurrency.
- Apple will need to focus on the latest technologies like ML (Machine Learning) to create new channels of growth.
- For the remote working trends, Apple should increase the sales of notebooks and Tablets.
- The company should increase the number of its showroom.
- Apple company should launch some products that are affordable for everyone
- Improving the health and safety of the company’s employees.
- Enhancement of the people by a long shot.
- Encourage the workers to be creative
- Lifting the team morale by achieving the team goals.
In conclusion, it can be said that there are several challenges before Apple, the company has sustained its performance level through a higher focus on innovation. Apple’s financial performance in 2020-2021 was impressive even in the face of the pandemic that had caused demand to fall and growth to slow in the first quarter of 2020.
An Apple SWOT analysis helps the company in many different ways. Only because it would allow the executive directors to theoretically take apart the company’s strategic approach to this day and scrutinize them. The future may be full of challenges for Apple, but with its strong cash flow and investment in research and development, it could achieve accelerated growth momentum in the post-pandemic period.