SWOT analysis of Apple – Apple SWOT analysis

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SWOT analysis of Apple – Apple SWOT analysis

This is a detailed SWOT analysis of Apple Inc. It attempts to examine how Apple Inc. has been utilising its strengths and addressing its weaknesses. It also attempts to examine the potential opportunities that may come along its way and the threats it should keep close eyes on.

Strategic planners use a number of tools to audit their organisations. SWOT analysis is one of the tools which many of them find extremely useful. SWOT stands for strengths, weaknesses, opportunities, and threats. Strengths and weaknesses are internal factors. Opportunities and threats are external factors (Needham et al, 1995). The use of SWOT analysis may play a very important role in the strategic planning of any organisations. The following is a detailed SWOT analysis of the Apple Inc:

Strengths of Apple

Apple has an invaluable market experience. The company has been in operation since 1976. It was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne (Apple, 2020). Steve Jobs’ leadership was instrumental to the global success of the company. Likewise, Apple’s current leadership team is simply great.

Apple is also famous for aesthetic designs of its products. iPhone, iPad, iPod and some other products of the company have often been appreciated for their designs. It is the product design that have mesmerised millions of people around the world.

Apple is a highly specialist company and focuses of a limited number of products. This was the strategy adopted by Steve Jobs when he returned to Apple after a break. A particular focus on smartphones has been one of the driving factors behind the company’s success.

Apple is the most valuable brand in the world. The company came top of the list of most valuable companies in world in 2016 published by Forbes. The brand value of the company then was $154.1 billion. According to Guttmann (2020), Apple’s brand value in 2020 is 352 billion U.S. dollars.

Weaknesses of Apple

Apple products are usually expensive. It is sometimes difficult for many people in many parts of the world to buy Apple products. Likewise, Apple has overdependence on iPhone sales. This may put the company at disadvantage should there be any dramatic change of customer taste concerning smartphones.

Apple has a limited distribution network as the company follows a very selective distribution strategy. This choice of strategy supports control over the distribution of products; however, it also limits the market reach of the company.

Opportunities for Apple

iPhone market is ever growing. This is a huge opportunity for the company. It will certainly help the company grow further. No wonder why Apple comes up with new version of iPhones very often!

The use of the Internet and e-commerce are expected to grow significantly over the next decade. Apple can produce new products and services to make use of the opportunity. Apple Watch, Apple TV, and Apple Music are some the examples of opportunities seized by the company.

Threats to Apple

Major competitors such as SAMSUNG, Microsoft and others are usually the treats. These competitors put an enormous pressure on Apple’s market share, revenue, and profits.

Bad press is a threat for a company like Apple as customers are now-a-days very concerned about the impact of organisations’ actions on society and environment. Apple’s supplier Foxconn has been accused of paying its employees $2 a day in Taiwan.

Rising labour cost in countries where Apple plants are located is also an issue of concern. This will impact on Apple’s profit and many even force the company increase the selling prices further.

We hope the article ‘SWOT analysis of Apple Inc.’ has been helpful. You may also like reading Stakeholders of Apple (Analysis of Apple’s stakeholders) and Marketing Mix of Apple. Other relevant articles for you are:

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Last update: 08 October 2020

Further reading/references

Apple (2020) Apple leadership, available at: https://www.apple.com/uk/leadership/ (accessed 08 October 2020)

Needham et al. (1995) Business for Higher Awards, 1st edition, Heineman Educational: Oxford

Guttmann, A. (2020) Apple’s global brand value from 2006 to 2020, available at: https://www.statista.com/statistics/326052/apple-brand-value/ (accessed 07 October 2020)

Author: Joe David

Joe David has years of teaching experience both in the UK and abroad. He writes regularly online on a variety of topics. He has a keen interest in business, hospitality, and tourism management. He holds a Postgraduate Diploma in Management Studies and a Post Graduate Diploma in Marketing Management.