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1. APPLE INC. SWOT
ANALYSIS 2016

2. SLIDE | 2
ABOUT APPLE
Name Apple Inc.
Logo
Industries served
• Computer hardware (Mac, iMac, Mac Pro, MacBook, MacBook Air)
• Computer software (iOS, OS X, Safari, iLife, iWork, iMovie, iPhoto)
• Consumer electronics (iPod, iPhone, iPad, Apple TV and Mac products)
• Internet (iTunes store, iCloud, App Store, Mac App Store)
Geographic areas served Worldwide (retail stores in 18 countries and online stores in 120 countries)
Headquarters Cupertino, California, United States
Current CEO Timothy Donald "Tim" Cook
Revenue US$233.715 billion (2015) increased 27.85% over US$182.795 billion (2014)
Profit US$53.394 billion (2015) increased 35.14% over US$39.510 billion (2014)
Employees 110,000 (2015)
Main Competitors
Samsung Electronics Co., Ltd., Amazon.com, Inc., International Business Machines Corporation, Cisco
Corporation, Cisco Systems, Inc., Google Inc., Microsoft Corporation, Dell Inc., LG Electronics, Lenovo
Electronics, Lenovo Group Limited, Hewlett-Packard Company, Sony Corporation and many other
many other computer hardware, computer software, consumer electronics and Internet companies.

3. Apple, Inc. business overview from the company’s financial report:
“The Company designs, manufactures, and markets mobile
personal computers, and portable digital music players, and sells a
services, peripherals, networking solutions, and third-party digital
Company’s products and services include iPhone®, iPad®, Mac®, iPod®,
of consumer and professional software applications, the iOS and OS X®
iCloud®, and a variety of accessory, service and support offerings. The
delivers digital content and applications through the iTunes Store®, App
and Mac App Store .
SLIDE | 3
BUSINESS DESCRIPTION (1/3)
“
”

4. • retail stores
• online stores
• direct sales force
• third-party cellular network carriers
• wholesalers
• retailers
• value-added resellers
SLIDE | 4
BUSINESS DESCRIPTION (2/3)
Our sales
channels
include
“ ”
Our customers
are
• consumers
• businesses
• enterprises
• education institutions

5. The Company is committed to bringing the best user experience to its customers through its
innovative hardware, software and services. The Company’s business strategy leverages its
unique ability to design and develop its own operating systems, hardware, application software
and services to provide its customers products and solutions with innovative design, superior
ease-of-use and seamless integration. The Company believes a high-quality buying experience
with knowledgeable salespersons who can convey the value of the Company’s products and
services greatly enhances its ability to attract and retain customers. Therefore, the Company’s
strategy also includes building and expanding its own retail and online stores and its third-party
distribution network to effectively reach more customers and provide them with a high-quality
sales and post-sales support experience. The Company believes ongoing investment in research
and development (“R&D”), marketing and advertising is critical to the development and sale of
innovative products and technologies.”[1]
SLIDE | 5
BUSINESS DESCRIPTION (3/3)
“ ”

6. Apple’s advertising
budget is certainly not
the largest when
compared to its
competitors’ budgets,
but Apple uses it the
most effectively.
SLIDE | 6
STRENGTHS
1. Marketing and advertising capabilities, which increase brand awareness and
create stronger demand for the company’s products
S W
O T
Company 2012 2013
Change from
2012
2014
Change
from 2013
2015
Change
from 2014
Apple 1 1.1 10% 1.2 9.1% 1.8 50%
Samsung
Electronics
4.3 3.8 (11.6)% 3.6 (5.7)% 3.4 (5.5)%
Microsoft 1.6 2.6 38.5% 2.3 (11.5)% 1.9 (17.4)%
Amazon.com 2 2.4 20% 3.3 37.5% 3.8 15%
Google 2 2.4 20% 3 25% 3.2 6%
Figure 1. Yearly advertising budget spending by Apple and its competitors (in US$ billions)
Source: The respective companies’ financial reports[1][4][5][6][7]

7. 1. Overdependence on iPhone and iPad sales
SLIDE | 7
WEAKNESSES
iPhone and iPad sales
account for a higher
share of the company’s
total revenue each year.
Figure 5. iPhone and iPad net sales (in US$ billions and percentage of total
Apple sales)
2013 2014 2015
iPhone
Net sales 91.279 101.991 155.041
% of total Apple
sales
53% 56% 66%
iPad
Net sales 31.980 30.283 23.227
% of total Apple
sales
19% 17% 10%
Total share 72% 73% 76%
Source: Apple financial report[1]
S W
O T

8. Overdependence on iPhone
and iPad sales weakens the
company as shifts in
technology, component
prices or consumer tastes
may severely decrease
Apple’s revenue.
SLIDE | 8
WEAKNESSES
iPhone
66%
iPad
10%
Mac
11%
Services
9%
Other Products
4%
Figure 6. Apple revenue breakdown by product in 2015
Source: Apple financial report[1]
S W
O T

9. 1. The Internet of Things (IoT) market is expected to grow significantly over
the next decade
SLIDE | 9
OPPORTUNITIES
Currently, more than 20 billion devices are connected to the Internet and this
number is expected to grow by 50% to 30 billion by 2020.[21] International Data
Corporation (IDC) forecasts that the worldwide market for the IoT will grow
from US$655.8 billion in 2014 to US$1.7 trillion by 2020.[22]
S W
O T
Apple could introduce its own OS for IoT
industry.

10. 1. Intensifying competition puts pressure on Apple’s market share, revenue
and profits
SLIDE | 10
THREATS
Apple’s main
competitors
S W
O T

11. • The markets in which Apple operates are highly competitive.
• In the smartphone sector, developed markets have nearly reached saturation and will grow only
modestly in the next few years.
• Competition in the emerging markets is more based on price, product features and relative
price/performance, rather than product quality, reliability, and the strong third-party software and
peripherals’ ecosystem that Apple provides.
• Apple with its high-end but overpriced devices is likely to lose this emerging markets’ battle to cheaper
Android devices.
SLIDE | 11
THREATS
S W
O T

12. 1. Apple, Inc. (2016). Form 10-K for the Fiscal Year Ended September 26, 2015. Available at: http://files.shareholder.com/downloads/AAPL/899225436x0xS1193125-15-
356351/320193/filing.pdf Accessed May 11, 2016
2. Apple (2016). Apple Store Locations. Available at: https://www.apple.com/retail/storelist/ Accessed May 11, 2016
3. Apple (2016). Choose your country or region. Available at: http://www.apple.com/choose-your-country/ Accessed May 11, 2016
4. Samsung Electronics (2016). Annual Report. Available at:
http://www.samsung.com/us/aboutsamsung/investor_relations/financial_information/downloads/2015/2015_con_quarter04_all.pdf Accessed May 11, 2016
5. Microsoft Corporation (2016). Form 10-K for the Fiscal Year Ended June 30, 2015. Available at:
http://apps.shareholder.com/sec/viewerContent.aspx?companyid=MSFT&docid=10834537 Accessed May 11, 2016
6. Amazon.com, Inc. (2016). Form 10-K for the Fiscal Year Ended December 31, 2015. Available at: http://phx.corporate-ir.net/phoenix.zhtml?c=97664&p=irol-reportsannual
Accessed May 11, 2016
7. Alphabet Inc., Google Inc. (2016). Form 10-K for the Fiscal Year Ended December 31, 2015. Available at: https://abc.xyz/investor/pdf/20151231_alphabet_10K.pdf Accessed
May 11, 2016
8. Forbes (2016). The World’s Most Valuable Brands. Available at: http://www.forbes.com/powerful-brands/list/ Accessed May 11, 2016
9. Interbrand (2016). Best Global Brands 2015. Available at: http://interbrand.com/best-brands/best-global-brands/2015/ranking/ Accessed May 11, 2016
10. Tejada, C. & Dou, E. (2015). China’s Smartphone Market Slows Down. Available at: http://www.wsj.com/article_email/chinas-smartphone-market-slows-down-1431296873-
lMyQjAxMTE1MzEyMDQxNzAwWj Accessed May 11, 2016
11. ITU (2015). Internet of Things Global Standards Initiative. Available at: http://www.itu.int/en/ITU-T/gsi/iot/Pages/default.aspxAccessed May 11, 2016
12. Time Tech (2011). Why competing with Apple is so difficult. Available at: http://techland.time.com/2011/07/01/why-competing-with-apple-is-so-difficult/ Accessed May 11, 2016
13. Statista (2014). Apple Beats Competitors in Smartphone Brand Loyalty. Available at: http://www.statista.com/chart/2460/brand-retention-in-the-smartphone-industry/ Accessed
May 11, 2016
SLIDE | 12
SOURCES (1/3)

13. SLIDE | 13
SOURCES (2/3)
14. Epstein, Z. (2015). Apple Continues to Crush Samsung Where It Matters Most. Available at: http://bgr.com/2015/06/29/apple-vs-samsung-brand-loyalty-survey-rbc/ Accessed
May 11, 2016
15. Statista (2016). Market share of smartphone shipments worldwide in 2015 and 2019, by country. Available at: http://www.statista.com/statistics/431224/market-share-
smartphone-shipments-countries/ Accessed May 11, 2016
16. Dediu, H. at Asymco (2013). Apple's International Retail Strategy. Available at: http://www.asymco.com/2013/02/25/apples-international-retail-strategy/ Accessed May 11,
2016
17. Jaruzelski, B., Staack, V. & Goehle, B. (2015). Innovations New World Order. Available at: http://www.strategy-business.com/feature/00370 Accessed May 11, 2016
18. U.S. Patent and Trademark Office (2014). Patenting by Organizations 2013. Available at: http://www.uspto.gov/web/offices/ac/ido/oeip/taf/topo_13.htm Accessed May 11,
2016
19. U.S. Patent and Trademark Office (2015). Patenting by Organizations 2014. Available at: http://www.uspto.gov/web/offices/ac/ido/oeip/taf/topo_14.htm Accessed May 11,
2016
20. U.S. Patent and Trademark Office (2016). Patenting by Organizations 2014. Available at: http://www.uspto.gov/web/offices/ac/ido/oeip/taf/topo_15.htm Accessed May 11,
2016
21. EMC & IDC (2014). The Internet of Things. Available at: http://www.emc.com/leadership/digital-universe/2014iview/internet-of-things.htm Accessed May 11, 2016
22. Norton, S. (2015). Internet of Things market to Reach $1.7 Trillion by 2020: IDC. Available at: http://blogs.wsj.com/cio/2015/06/02/internet-of-things-market-to-reach-1-7-
trillion-by-2020-idc/ Accessed May 11, 2016
23. Danova, T. (2014). The Wearables Report: Growth Trends, Consumer Attitudes, And Why Smartwatches Will Dominate. Available at: http://www.businessinsider.com/the-
wearable-computing-market-report-2014-10 Accessed May 11, 2016
24. PwC Health Research Institute (2014). Health wearables: Early days. Available at: http://www.pwc.com/en_US/us/health-industries/top-health-industry-issues/assets/pwc-hri-
wearable-devices.pdf Accessed May 11, 2016
25. World Health Organization (2015). Diabetes. Available at: http://www.who.int/mediacentre/factsheets/fs312/en/ Accessed May 11, 2016

14. 26. Americans Diabetes Association (2014). Statistics About Diabetes. Available at: http://www.diabetes.org/diabetes-basics/statistics/?referrer=https://www.google.com/ Accessed May 11, 2016
27. Schiff, J. (2015). 8 Enterprise Software Predictions for 2015. Available at: http://www.cio.com/article/2865477/enterprise-software/8-enterprise-software-predictions-for-2015.html Accessed
May 11, 2016
28. Lopez, M. (2014). Apple and IBM Just Showed Everyone The Future Of Enterprise Mobile Apps. Available at: http://www.forbes.com/sites/maribellopez/2014/12/10/apple-and-ibm-
showcase-a-bold-new-enterprise-mobile-app-frontier/ Accessed May 11, 2016
29. McCarthy, V. (2015). IDC: Mobile Enterprise Management Software on a Tear; Set to Triple by 2016. Available at: http://www.idevnews.com/stories/5471/IDC-Mobile-Enterprise-
Management-Software-on-a-Tear-Set-to-Triple-by-2016 Accessed May 11, 2016
30. Radicati, C. (2014). Enterprise Mobility Management Market, 2014-2018. Available at: http://www.radicati.com/wp/wp-content/uploads/2014/01/Enterprise-Mobility-Management-Market-
2014-2018-Executive%20Summary.pdf Accessed May 11, 2016
31. Forbes (2014). Apple Is Ceding The Ecosystem Battle To Google. Available at: http://www.forbes.com/sites/terokuittinen/2014/01/28/apple-is-ceding-the-ecosystem-battle-to-google/
Accessed May 11, 2016
32. Unified Patents (2015). 1st Half 2015 Patent Dispute Report. Available at: http://unifiedpatents.com/1st-half-2015-patent-dispute-report/ Accessed May 11, 2016
33. Identity Theft Resource Center (2016). Identity Theft Resource Center Breach Report Hits Near Record High in 2015. Available at: http://www.idtheftcenter.org/ITRC-Surveys-
Studies/2015databreaches.html Accessed May 11, 2016
34. eMarketer (2015). Mobile Payments Will Triple in the US in 2016. Available at: http://www.emarketer.com/Article/Mobile-Payments-Will-Triple-US-2016/1013147 Accessed May 11, 2016
SLIDE | 14
SOURCES (3/3)

15. SLIDE | 15
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