This post was most recently updated on April 14th, 2018
Apple SWOT Analysis provides insight on how the company has managed to maximize its growth and catapult its way to success. While many thought that the demise of Steve Jobs would hold back the company, Apple has been in very good hands owing to current CEO Tim Cook.
In this guide, we’ll be studying the internal and external strategic factors that have contributed to Apple’s success. We’ll also be highlighting some key weaknesses and threats that the company ought to pay attention to.
Strengths in Apple SWOT Analysis
High Price Margin and Earning
On September 30th, 2017, Apple announced a 12 percent increase in revenue, with a quarterly revenue of a whopping $52.6 billion. It’s thus safe to say that Apple does very well as far as financial performance is concerned. Not to mention, Apple has been consistently listed as one of the valuable brands in the world by Forbes.
The brand’s main strength lies in its premium pricing strategy that boasts high-profit margins. This provides Apple the flexibility to adjust prices to ensure significant profits.
Brand Reputation and Awareness
Perhaps one of Apple’s greatest strengths is that it is globally recognized as one the leading smartphone brands in the market. This is all because of its excelling marketing and advertising capabilities. Over the years, Apple has worked hard to create premium products that no other company in the world has managed to overrule.
One of Apple’s major strengths lies in its extensive distribution channels. Like other big brands in the world, Apple uses a multi-channel approach which has brought the company quite a lot of profit. Aside from direct distribution channels such as online stores and of course, retail outlets, Apply also makes use of multiple indirect distribution networks.
This indirect distribution network comprises of third-party wholesalers while some popular retailers include Walmart and Amazon Marketplace.
Weaknesses in Apple SWOT Analysis
No Official Stores in India
At present, India has the third largest smartphone market in the world today. What’s surprising is that its citizens are yet to welcome Apple’s first official store. Apple could largely benefit from opening up its stores in other highly populated countries around the world.
Currently, Apple has a limited global distribution network compared to smartphone brands such as Samsung.
End to End Control
It’s no secret that Steve Jobs has always emphasized on Apple’s end-to-end control. Since the inception of Apple, Jobs had Apple computers sealed to prevent hobbyists from opening or modifying it. But that’s not all, Apple’s software has been designed not to operate on non-Apple hardware, staying true to the essence of its end-to-end model.
Because of this, Apple users face problems when an app isn’t available on iTunes store or if its users are accustomed to Microsoft OS.
Low Expenditure on Research and Development
While Apple was previously regarded as one of the most innovative companies, it is slowly losing its charm. In the last couple of years, Apple has failed to introduce new product types or any other kind of break-through technology. This has halted Apple’s progress, preventing the company from growing significantly.
Another notable weakness that should be taken into account is that Apple has one of lowest expenditures as far as R&D is concerned.
Opportunities in Apple SWOT Analysis
Diversify Product Lines
Apple has ample opportunities to diversify its product lines, especially with the recent boom in the IoT market. Since Apple offers smartphones, tablets, and computers, it can all be integrated and controlled using a single interface.
Apple has had tremendous success with collaborating with notable brands in the past. For instance, the brand teamed up with Beats for its AirPods and together introduced iPhone 7 alongside BeatsX. Apple has also teamed up with Nintendo to launch a new Mario Kart game on iPhone. Needless to say, users were ecstatic at this revelation as Nintendo fans cheered around the world.
Weaknesses in Apple SWOT Analysis
Apple’s business model requires it to collect personal information from consumers including email, debit/credit card, addresses, and other personal information that is commonly referred as PII or personally identifiable information.
With the recent accusations on Facebook for misusing consumer data, Apple should take relevant measures to secure customer information. Aside from creating an uproar around the world, this caused Mark Zuckerberg’s net value has fallen to $14 billion and Facebook stocks have also taken a plunge. Because of the increasing number of data breaches, Apple must take this matter up more seriously.
Market Penetration in Smartphones
One of the biggest threats to Apple is the market penetration of other Smartphone brands such as Samsung and HTC. Today, Android is quickly eating up market share while iOS is at the other end of the spectrum.
So with the increasing number of Android fans, Apple must work to retain its ground.
Wrapping it up
We hope you’ve learned plenty from this detailed Apple SWOT Analysis. Have something to add? Please tell us in the comment section below.