This Apple SWOT analysis reveals how one of the most successful world’s companies used its competitive advantages to become the dominant player in the tech industry.
It identifies all the key strengths, weaknesses, opportunities and threats that affect the company the most.
Apple Inc. has become the most valuable company in the world worth over US$1 trillion in 2018. It is a milestone only few companies have ever achieved. The company’s success is revealed in this SWOT’s 5 most important strengths.
Apple should continue to focus on developing its unique software and hardware ecosystem, which is the main company’s differentiator and the main competitive advantage over the rivals. In addition, Apple should improve and strengthen its R&D capabilities and introduce more innovative products to the market.
As for the weaknesses, the decline in China should be addressed as soon as possible. China’s market isn’t 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.
Improved smartphone and wearable technologies have given rise to many opportunities for Apple. The company is well aware of the opportunities that augmented and virtual reality markets have to offer. This is currently the most important and profitable opportunity Apple should pursue.
Few threats are posing real danger for the company. 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.
Over the next few years, Apple will continue to grow successfully.
These are the key Apple SWOT strengths, weaknesses, opportunities and threats. If you’d like to access many more of them, please visit our website https://strategicmanagementinsight.com/swot-analyses/apple-swot-analysis.html and purchase the Apple SWOT analysis from there.
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ABOUT APPLE
Name Apple Inc.
Logo
Industries served
• Computer hardware (iMac, iMac Pro, MacBook, MacBook Pro, MacBook Air)
• Software (iOS, iPadOS, MacOS, watchOS, tvOS, Safari, iWork, iMovie)
• Consumer electronics (iPhone, iPad, Apple TV, Apple Watch, AirPods, HomePod)
• Internet Services (iCloud, Apple Pay, App Store, TV App Store, Apple Music)
Geographic areas served 509 retail stores in 25 countries and online stores in over 100 countries
Headquarters Cupertino, California, United States
Current CEO Timothy Donald "Tim" Cook
Revenue (US$) 260.174 billion (2019) 2% 265.595 billion (2018)
Profit (US$) 55.256 billion (2019) 7.2% 59.531 billion (2018)
Employees 137,000 (2019)
Main Competitors
Samsung Electronics Co., Ltd., Amazon.com, Inc., International Business Machines
Corporation, Cisco Systems, Inc., Google Inc., Microsoft Corporation, Dell Inc., LG
Electronics, Lenovo Group Limited, Hewlett-Packard Company, Sony Corporation and
many other computer hardware, computer software, consumer electronics and
Internet companies.
3. Apple Inc., established in 1977, is the largest technology company by revenue
and one of the most valuable companies, both in terms of market capitalization
and brand value, in the world.[3] The company has revolutionized the
smartphone market and has created one of the most iconic brands in history.
Apple has built its business by selling and manufacturing computer hardware
and software, but experienced significant growth and success by entering
consumer electronics market with iPod, iPad and iPhone products.
The company designs, manufactures and markets smartphones, tablets,
personal computers, wearables and accessories, and offers many related
services including financial services.
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BUSINESS DESCRIPTION (1/3)
“ ”
4. • retail stores
• online stores
• direct sales force
• third-party cellular network carriers
• wholesalers
• retailers
• value-added resellers
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BUSINESS DESCRIPTION (2/3)
Our sales
channels
include
“ ”
Our
customers
are
• consumers
• businesses
• enterprises
• education institutions
5. Apple operates and sells its
products in over 100 countries, but
the U.S. China, the U.K. Canada
and Australia are the most
important markets.
In 2019, the company’s net sales
through its direct (sales in
company’s 508 stores in 25
countries and sale through online
stores) and indirect distribution
(sales made by third-party sellers)
channels accounted for 31% and
69%, respectively.
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BUSINESS DESCRIPTION (3/3)
“ ”
6. Many of Apple’s competitors
have tried and still try to imitate
the success of Apple’s product
ecosystem, but fail due to not
having strong capabilities in
designing, manufacturing and
developing both hardware and
software, applications and
services.
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STRENGTHS
1. Unique ability to design and develop proprietary hardware, software, applications
and services
S W
O T
Apple’s product ecosystem
7. 1. Over-reliance on iPhone sales
as a major revenue source
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WEAKNESSES
The iPhone generated
54.7% of the
company’s total
revenue in 2019.
Apple revenue breakdown by product 2019 (% share of total revenue)
S W
O T
54.7%
17.8%
9.9%
9.4%
8.2%
iPhone
Services
Mac
Wearables, Home and
Accessories
iPad
8. 1. Augmented and virtual reality markets will be worth US$104 billion by 2023
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OPPORTUNITIES
The combined AR and VR markets are expected to be worth US$10.5 billion in 2019.
Both markets are expected to be worth around US$104 billion combined by 2023.
AR and VR will become very profitable growth markets
and Apple should take advantage of this opportunity.
S W
O T
9. 1. Smartphones and tablets are becoming a commodity, which could impact the
company’s gross margins
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THREATS
Smartphone Differentiation Points
Hardware Design Software
Additional
services
No longer offers enough differentiation
for iPhone
Offers some
differentiation
Main iPhone
differentiator
S W
O T
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GET THE FULL
PRESENTATION
BUY APPLE INC. SWOT
2020
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