Apple Inc. is a multinational technological giant that has completely changed how people use personal computers and communicate. The company has risen to the top of the market due to its unwavering dedication to innovation and design. Apple has a devoted fan base throughout the world. Nowadays, Apple is a household name. Only a very few homes do not own an Apple product. Nowadays, everyone knows about Apple computers. But there is a lot more to know about Apple computers. This is where we have created this where we will tell you about the strengths, weaknesses, opportunities, and threats of this company. You will only find the application of the SWOT technique in this SWOT Analysis of Apple Computer. This SWOT analysis has been conducted by one of the subject experts at All Assignment Help. Read on to know more…
An Overview of Apple
Apple Inc. was established in 1976 by Steve Jobs, Steve Wozniak, and Ronald Wayne. Since then, the company has come to represent innovation and superior design. Since the Apple I was developed, the firm has continuously pushed the boundaries of technology. Furthermore, the release of the Macintosh in 1984 and the revolutionary iPhone in 2007 are two significant turning points.
Apple has established industry standards and attracted a devoted global following due to its emphasis on simple, user-friendly design. Apple has created the well-known “Apple ecosystem by integrating software, hardware, and services seamlessly throughout its product range. Additionally, provides users with a unified and user-friendly experience.
Today, Apple is a major player in the technology industry, offering a wide range of products and services, including the App Store and Apple Music, iPhones, iPads, and Mac computers.
Read Here: How to do a personal SWOT analysis?
SWOT Analysis of Apple Computers
A SWOT analysis is a remarkably simple yet powerful technique for figuring out what elements support or advance a firm. SWOT stands for strengths, weaknesses, opportunities, and threats. Opportunities and threats are external elements, but strengths and weaknesses are internal ones.
Now let us dig deeper into the SWOT Analysis of Apple Inc. in the following sections.
SWOT Analysis of Apple Computers – Strength
Apple Computer is a strong company. There are several good things about the company. Strength is the first component of SWOT Analysis. Given below are five strengths of Apple computers.
Brand Image
The company has a strong brand among its consumers. The company is liked by many. Its brand is protected and defended by its fans. Furthermore, its reputation is beyond any geographical boundaries. People from all over the world admire this brand. You can get help from an assignment helper to know how a brand name can affect the overall strength.
Innovation Processes
Apple always follows an innovation process. It always tries to come up with something new every time it launches its product. It keeps adding new features to its phones, and laptops. Innovation has put the company where it is today. Many companies came and lost the market, but Apple kept on surviving.
Customer Loyalty
Apple has too devoted a following of customers. They rarely move away from other brands. A strong fan base of the company ensures that more positive word of mouth occurs all the time. Apple has not only given a quality product to its customers, but it has also helped its customer raise their social status.
Profit Margin
The profit margin can be seen from three angles. They are gross margin, operating margin, and net margin. The profit margin of Apple Inc. by June 30, 2019 was 21.5%. If you view the past 15 years of profit margins, it shows an overall rise.
Product Marketing
Apple is the best at advertising its products, and it has been quite evident since the days of Apple CEO Steve Jobs. Its product launches in the form of Apple events are observed worldwide. The company has produced several heartwarming TV commercials that touched millions of souls.
SWOT Analysis of Apple Computers – Weaknesses
As we mentioned at the beginning using Apple as an example in the 1990s, things do not always go well for Apple. It is currently having trouble with several dynamics as well. Look at some of the weaknesses of Apple computers:
Distribution Network
Apple keeps its distribution channel exclusive. Not every distributor can get access to sell Apple products. The company allows only selected authorized sellers to sell the product. This limits its reach to the customers. SWOT and situational analysis will help you understand the distribution network of Apple in a far good manner.
High-End Market Dependence
The target customers of the company are majorly those who have bigger budgets. This limits the products’ access to the mass market. Thus, it negatively impacts the revenue generation. You can see that Apple not only maintains exclusivity in the distribution, but it also keeps the customer segment exclusive.
Higher Product Prices
All Apple products are sold at higher price points. Therefore, customers who can afford a Samsung with almost the same features at half the price cannot purchase an Apple product.
Few Products
Its core products are less common in the market than those of other companies. Because of this, the company is in a risky position where a decline in demand for one or two products could endanger its future.
Third-Party Incompatible Products
The company’s devices have a closed ecosystem, whether it is Apple iPhone, iMac, or iPod. If you purchase Apple, then you cannot expect external devices or software to work with it. This reduces the flexibility of the product.
SWOT Analysis of Apple Computers – Opportunities
The company is still thriving and there is a long way to go. Ups and downs in the internal and external environment take place all the time and it brings several opportunities as well. Three opportunities for Apple Inc., under the third component of SWOT Analysis, are given below.
Development of AI
Apple could take advantage of the latest advancements in artificial intelligence to improve the usability of its products as the world experiences a fresh wave of this technology. Even though this route has seen tremendous improvements, more work remains. You can learn more about how AI offers chances to Apple in overall productivity by taking an online course. Plus, you can also hire an online class helper whenever you need additional assistance with your coursework.
Expanding Distribution Network
The brand image of the company can get it wide access to distribution. It can extend its reach to the remotest of the geographies to make its product easily accessible to the customers. Now riding on the wave of technology, the company can reach out to its customers through online eCommerce channels as well.
Globalization
These days, the entire world is a global community. Customers can now quickly order and get products directly from reliable companies because of globalization and advancements in communication and transportation. This is an opportunity for Apple to expand its consumer base globally and boost income.
SWOT Analysis of Apple Computers – Threats
Amid all these opportunities in the market that you read in the previous section, there are some threats as well. In the fourth and final component of the SWOT Analysis, we will see five threats that may hamper the company’s growth.
The Problem of Fake Goods
Apple is confronted with the problem of unapproved vendors using its trademark unlawfully to market counterfeit goods in underdeveloped nations. Fake goods are sold by unlawful vendors for the same price as the real thing. Potential shoppers might perceive Apple as having inferior quality as a result of these fake goods.
Technological Changes
New technologies come out on the block every few months, and keeping up with the changes has become a quite tedious process. Every revolutionizing technology brings with it a challenge for existing companies. Therefore, either Apple has to keep coping with it or perish!
Imitation
In the past few years, particularly since the iPhone, Apple has not come up with any revolutionizing and paradigm-shifting technology. Smartphone products in the market now have more or less similar technologies and features. It seems Apple is surviving only because of its image and fan base.
Aggressive Competition
Competition has grown rapidly in the past five years. Around the world, Chinese technology companies are doing far better than Apple or even Samsung. Take a look at the graph below. It was the scenario of the Chinese smartphone market in 2017 and 2018. Apple and Samsung were on the last line.
Rise in Labor Costs
The labor costs are rising in countries that used to be low cost like China. Apple has its manufacturing unit in China, and the increased labor cost is likely to affect the product cost. This increased product cost will eventually burden the customers or it will reduce the profitability of the company.
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Also Read: Strategic Analysis Tool
Conclusion
As can be seen from the SWOT analysis of Apple computers, it is clear that the company’s reputation and customer loyalty give it a strategic advantage over its threats and weaknesses. However, the company will benefit from addressing the issues mentioned above by putting in place efficient management techniques and getting rid of any future dangers.
If you are eager to learn more about Swot Analysis of Apple or another company, you can register for an online course. Multiple platforms offer complete courses in SWOT analysis. Also, whenever you find stuck in your online course, you can get help from us. We have experts who will provide you with all the required assistance you need with your online courses. Not only this, we have subject experts in various domains as well. Thus, whether you need someone to take my online accounting class, finance class, marketing class, or any other, just give us a call and we will match you with the finest online class taker.
FAQs
| What are the key competencies of Apple? Apple possesses several key competencies, including a strong sense of brand identity, brand value, industry-leading innovation and technology, brand preference, expert research, and offering customers an exceptional experience. |
| What is the primary problem that Apple is facing? According to the DOJ and the attorneys general, Apple has placed hardware and software restrictions on its iPhones and iPads that make it more difficult for competitors to compete and for customers to switch phones. |
| Why is the Apple market so fiercely competitive? Apple Inc.’s focus on user experience, ongoing innovation, integration of hardware, software, and services, branding excellence, ecosystem lock-in, efficient supply chain management, strategic partnerships, and long-term vision are all factors that contribute to the company’s prolonged competitive advantage. |