Apple SWOT Analysis 2019

Introduction

Apple is the worlds largest technology firm. They have a turnover of $215bn in 2017 and a massive global customer base. Read our article about SWOT Analysis to learn more about SWOT Analysis. In this article we carry out a quick SWOT Analysis for Apple PLC.

Strengths

• Brand leader: Apple is the "go to" brand for mobile phones.
• Large market share for Safari: Apple's Safari browser is the most popular browser on the mobile network.
• Apple were the first company to reach a trillion dollar market value
• The launch of Iphone XS in September 2018 has created alot of promotional hype for the Apple brand again.
• Innovative company: Apple's growth is based on it's entrepreneurial spirit and it's innovative ideas continue to extend the life cycle of its product portfolio.
• Wide product portfolio: Apple has a portfolio of phones, computers and tablets.
• Design innovates the sale of Apple's products: Product design is a key USP for Apple. The design enables the company to adopt a premium pricing strategy and allows the product to stand out from competitors.
• Dedicated Apple Stores on the high street: Apple store are real crowd pullers with potential customers being able to test their products.
• Hugh cash reserves: Apple has $285 bn in cash as reported by CNBC. This puts them in a very strong position allowing them to either set up new businesses and buy rival firms.
• Phone features and facilities: The camera facility on an Apple phone is a major USP. Phone users use it as a substitute for a camera.

The diagram below provides a simple illustration of an Apple SWOT Analysis

Weaknesses

• Cross compatibility: Many consumers complain that Apple products are not compatible with Android products
• Apple smart watches have yet to take the market by storm. The Apple watch has been deemed a failure by many market analysts.
• On 1st May 2019 Apple announced a fall in Iphone sales by 17% compared to the same period the previous year to $31bn

Opportunities

• Changes in technology means that Apple can innovate in different industries.
• Driverless cars and motorcycles maybe the future in transportation and it is well rumoured that Apple has entered this market.
• The markets that Apple have entered are still growing.

Threats

• Competitors in the different sectors they operate within. Organisations like Samsung and Huawei are increasingly becoming popular and are catching up to Apple.
• Customers are getting bored with constantly updating their phones. This is called phone fatigue.
• Phones are computers that are replacing the need to own an ipod and possibly laptops. This could result in the possibility of product cannibalism so that phone sales have a negative impact on the sales of Apple laptops.