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Apple SWOT analysis 2017

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Apple SWOT analysis 2017

  1. 1. APPLE INC. SWOT ANALYSIS 2017
  2. 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 20 countries and online stores in 38 countries) Headquarters Cupertino, California, United States Current CEO Timothy Donald "Tim" Cook Revenue (US$) 215.639 billion (2016) 7.7% 233.715 billion (2015) Profit (US$) 45.687 billion (2016) 14.4% 53.394 billion (2015) Employees 116,000 (2016) 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. 3. Apple, Inc. business overview from the company’s financial report: “The Company designs, manufactures, and markets mobile communication and media devices, personal computers, and portable digital music players, and sells a variety of related software, services, peripherals, networking solutions, and third-party digital content and applications. The Company’s products and services include iPhone®, iPad®, Mac®, iPod®, Apple TV®, a portfolio of consumer and professional software applications, the iOS and OS X® operating systems, iCloud®, and a variety of accessory, service and support offerings. The Company also sells and delivers digital content and applications through the iTunes Store®, App Store™, iBooks Store™, and Mac App Store . SLIDE | 3 BUSINESS DESCRIPTION (1/3) “ ”
  4. 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. 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. 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. SLIDE | 6 STRENGTHS 1. Unique ability to design and develop proprietary hardware, software, applications and services S W O T Figure 1. Apple’s product ecosystem Source: Strategic Management Insight • iLife • iWork • iMovie • Final Cut Pro • iTunes Store • App Store • iBooks Store • Apple Music • iOS • macOS • watchOS • tvOS • iPhone • iPad • Apple Watch • Mac • Apple TV Hardware Software Application Software Services
  7. 7. 1. Overreliance on iPhone sales as a major revenue source SLIDE | 7 WEAKNESSES The iPhone generated 55.8% of the company’s total revenue in 2014. This number grew to 63.4% in 2016. Figure 6. Apple revenue breakdown by product 2016 (% share of total revenue) Source: Apple financial report[1] S W O T 63%10% 11% 11% 5% iPhone iPad Mac Services Other Products
  8. 8. 1. Augmented and virtual reality markets will be worth over US$140 billion by 2022 SLIDE | 8 OPPORTUNITIES In 2016, the AR market was worth US$1.2 billion while the VR market generated US$2.7 billion, making the combined market worth US$3.9 billion.[19] Both markets are expected to be worth over US$140 billion combined by 2022.[20] S W O T AR and VR will become very profitable growth markets and Apple should take advantage of this opportunity.
  9. 9. 1. Smartphones and tablets are becoming a commodity, which could impact the company’s gross margins SLIDE | 9 THREATS S W O T Smartphone Differentiation Points Hardware Design Software Additional services No longer offers enough differentiation for iPhone Offers some differentiation Main iPhone differentiator
  10. 10. 1. Apple, Inc. (2017). Form 10-K for the Fiscal Year Ended September 24, 2016. Available at: http://files.shareholder.com/downloads/AAPL/2456063358x8143945x913905/66363059-7FB6-4710-B4A5-7ABFA14CF5E6/10- K_2016_9.24.2016_-_as_filed.pdf Accessed March 9th, 2017 2. Interbrand (2017). Best Global Brands 2016. Available at: http://interbrand.com/best-brands/best-global-brands/2016/ranking/ Accessed March 9th, 2017 3. Forbes (2017). The World’s Most Valuable Brands. Available at: http://www.forbes.com/powerful-brands/list/ Accessed March 9th, 2017 4. Brand Keys (2017). 2017 Brand Keys Customer Loyalty Engagement Index. Available at: http://info.brandkeys.com/acton/attachment/943/f- 0071/1/-/-/-/-/2017%20CLEI%20-%20Table%20of%20Categories%20and%20Winners.pdf Accessed March 9th, 2017 5. Edwards, J. (2016). iPhone users are abandoning their loyalty to Apple. Available at: http://www.businessinsider.com/iphone-users-abandon- loyalty-to-apple-2016-11 Accessed March 9th, 2017 6. 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 March 9th, 2017 7. Singh, S. and Vakulenko, M. (2013). The Evolution of Handset Business Models: from Source of Profits to Distribution Channel. Available at: https://www.visionmobile.com/blog/2013/08/evolution-of-the-handset-business-from-source-of-profits-to-distribution-channel Accessed March 9th, 2017 8. Samsung Electronics Co., Ltd. (2016). Consolidated Financial Statements of Samsung Electronics Co., Ltd. and Subsidiaries. Available at: http://www.samsung.com/us/aboutsamsung/investor_relations/financial_information/downloads/2015/2015_con_quarter04_all.pdf Accessed March 9th, 2017 9. Alphabet, Inc. (2017). Form 10-K for the Fiscal Year Ended December 31, 2016. Available at: https://abc.xyz/investor/pdf/20161231_alphabet_10K.pdf Accessed March 9th, 2017 10.Microsoft Corporation (2017). Annual Report 2016. Available at: https://www.microsoft.com/investor/reports/ar16/index.html Accessed March 9th, 2017 11.1Canalys (2017). Media alert: China smartphone market hits its highest shipment total ever. Available at: https://www.canalys.com/newsroom/media-alert-china-smartphone-market-hits-its-highest-shipment-total-ever Accessed March 9th, 2017 SLIDE | 10 SOURCES (1/3)
  11. 11. SLIDE | 11 SOURCES (2/3) 12.Apple, Inc. (2011). Form 10-K for the Fiscal Year Ended September 24, 2011. Available at: http://files.shareholder.com/downloads/AAPL/3883149972x0xS1193125-11-282113/320193/filing.pdf Accessed March 9th, 2017 13.Apple, Inc. (2012). Form 10-K for the Fiscal Year Ended September 29, 2012. Available at: http://files.shareholder.com/downloads/AAPL/3883149972x0xS1193125-12-444068/320193/filing.pdf Accessed March 9th, 2017 14.Apple, Inc. (2014). Form 10-K for the Fiscal Year Ended September 27, 2014. Available at: http://files.shareholder.com/downloads/AAPL/3883149972x0x789040/ED3853DA-2E3F-448D-ADB4- 34816C375F5D/2014_Form_10_K_As_Filed.PDF Accessed March 9th, 2017 15.Market Watch (2016). This is why Apple iPhone sales are tanking in China. Available at: http://www.marketwatch.com/story/apple-is-performing- terribly-in-china-but-its-not-because-of-the-economy-2016-04-27 Accessed March 9th, 2017 16.Fast Company (2017). The Most Innovative Companies of 2017. Available at: https://www.fastcompany.com/most-innovative-companies/2017 Accessed March 9th, 2017 17.Fast Company (2012). The Most Innovative Companies of 2012.Available at: https://www.fastcompany.com/most-innovative-companies/2012 Accessed March 9th, 2017 18.Haan, C. (2017). The World’s Most Innovative Companies. Available at: https://www.forbes.com/innovative-companies/#153fecad1d65 Accessed March 9th, 2017 19.Merel, T. (2017). The reality of VR/AR growth. Available at: https://techcrunch.com/2017/01/11/the-reality-of-vrar-growth/ Accessed March 9th, 2017 20.Markets and Markets (2016). Augmented Reality and Virtual Reality Market by Device Type. Available at: http://www.marketsandmarkets.com/Market-Reports/augmented-reality-virtual-reality-market-1185.html Accessed March 9th, 2017 21.Roberts, H. (2017). UBS: Apple already has 1,000 engineers working on AR in Israel and a new product may appear on this year's iPhone. Available at: http://www.businessinsider.com/ubs-apple-1000-engineers-ar-2017-2 Accessed March 9th, 2017 22.Morris, D. Z. (2017). Tim Cook Thinks Augmented Reality Could Be as Big as the iPhone. Available at: http://fortune.com/2017/02/11/tim-cook- augmented-reality/ Accessed March 9th, 2017 23.Webb, A. (2016). Hey, Siri, How Will Apple Keep Up with Google and Amazon? Available at: https://www.bloomberg.com/news/articles/2016- 06-10/hey-siri-how-is-apple-going-to-keep-up-with-google-and-amazon Accessed March 9th, 2017
  12. 12. 24.Grand View Research (2016). IVA Market Size Projected to Reach $12.28 Billion By 2024. Available at: http://www.grandviewresearch.com/press- release/global-intelligent-virtual-assistant-industry Accessed March 9th, 2017 25.IDC (2016). Fitness Trackers in the Lead as Wearables Market Grows 3.1% in the Third Quarter, According to IDC. Available at: https://www.idc.com/getdoc.jsp?containerId=prUS41996116 Accessed March 9th, 2017 26.Markets and Markets (2016). Wearable Medical Devices Market by Application. Available at: http://www.marketsandmarkets.com/Market-Reports/wearable- medical-device-market-81753973.html Accessed March 9th, 2017 27.PwC (2014). Health Wearables: Early Days. Available at: 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 March 9th, 2017 28.Morgan, D. (2016). U.S. multinationals eye foreign profits tax break with Trump win. Available at: http://www.reuters.com/article/us-usa-election-tax- companies-idUSKBN1352UK Accessed March 9th, 2017 29.Niu, E. (2017). The Most Cash That Apple, Inc. Has Ever Had. Available at: https://www.fool.com/investing/2017/02/07/the-most-cash-that-apple-inc-has- ever-had.aspx Accessed March 9th, 2017 30.Specout (2017). Compare Smartphones. Available at: http://smartphones.specout.com/ Accessed March 9th, 2017 31.Barrett, B. (2016). It’s Fine If the iPhone Looks the Same. In Fact, It’s Better. Available at: https://www.wired.com/2016/09/fine-iphone-looks-fact-better/ Accessed March 9th, 2017 32.IDC (2016). Smartphone OS Market Share, 2016 Q3. Available at: http://www.idc.com/promo/smartphone-market-share/os Accessed March 9th, 2017 33.IDC (2017). Tablet Market Woes Continue as Growth in Detachable Tablets Takes Its First Vacation During the Holiday Season, According to IDC. Available at: http://www.idc.com/getdoc.jsp?containerId=prUS42272117 Accessed March 9th, 2017 34.Identity Theft Resource Center (2017). Data Breaches Increase 40 Percent in 2016, Finds New Report from Identity Theft Resource Center and CyberScout. Available at: http://www.idtheftcenter.org/2016databreaches.html Accessed March 9th, 2017 35.Mello, J. P. (2016). 2017: More Apple Security Flaws, Cyberattacks, Hacktivism. Available at: http://www.technewsworld.com/story/84192.html Accessed March 9th, 2017 SLIDE | 12 SOURCES (3/3)
  13. 13. SLIDE | 13 GET THE FULL PRESENTATION BUY APPLE, INC. SWOT 2017

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