Apple SWOT analysis 2013
Strengths Weaknesses
1. Customer loyalty
1. High price
combined with
2. Incompatibility with
expanding closed
different OS
ecosystem
3. Decreasing market
2. Apple is a leading
share
innovator in mobile
4. Patent infringements
device technology
5. Further changes in
3. Strong financial
management
performance
6. Defects of new
($10,000,000,000
products
cash, gross profit
7. Long-term gross
margin 43.9% and no debt)
margin decline
Strengths
1. Customer loyalty combined with expanding closed ecosystem. While at first Apple’s closed ecosystem was a weakness for the business, this has now changed. First, Apple now
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Some of Apple’s iPod and iPhone releases had clear faults and thus disturbed sales of the products and firm’s reputation of superior product performance.
7. Long-term gross margin decline. Current Apple’s gross margin is one of the highest in the tech industry but analysts fear that due to increasing component prices and competition current margins will not be sustained. Hence, glooming firm’s future financial performance.
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Opportunities
1. High demand of iPad mini and iPhone 5. iPad mini sales will increase Apple’s market share in the tablet market and, will strengthen firm’s competitive advantage.
2. iTV launch. iTV launch will support Apple TV sales and the products’ ecosystem.
3. Emergence of the new provider of application processors. Samsung, the main Apple’s competitor, is also the only provider of application processors for Apple’s products. Apple has to find a new source for the component but could not find a suitable one yet. Nonetheless, new manufacturers with superior engineering capabilities are arising and it’s just a matter of time, when Apple will seize upon the opportunity of being less dependent on its direct competitors.
4. Growth of tablet and smartphone markets. Growth of tablet and smartphone markets is a good opportunity to expand firm’s share in these markets.
5. Obtaining patents through acquisitions. Apple lacks of some patents to
As noted in the case, “the growth in the apps market is closely tied to the growth in the market for mobile devices, both smartphones and tablet computers that are connected to cell phone networks.” Revenues from mobile apps have been on the rise and forecasts indicate a continual increase. Forecasts were made for revenue from mobile
With Apple the Growth has been substantial and it can be stated that the Products have reached a maturity stage and hence there is a chance of decline. This has also been evidenced to certain extent as Samsung has taken over as the market leader in the mobile phone segment. The emergence of cheaper brands like Lenovo etc has also been a challenge for IT products of Apple. However it is also true that Apple has always focussed on consumer trends and demands and thus has been capable of avoiding the decline stages. Further market development and diversification strategies have been suitably implemented
I learned that Apple is a juggernaut when it comes to their technological products and marketing goals. Apple focuses on the needs of customer’s light years ahead of their competition and even before most consumers have realized they want Apple’s products. Through their innovative marketing involving social media, word of mouth, Apple Stores they have convinced consumers about the high value of their product even lending to the formation of a “Mac cult” for its diehard fans. The way ahead for Apple is not to lose sight of its brand loyalty and continue to service the customers and entice them with the brand’s prestige. Even with the death of Steve Jobs, I believe Apple forge ahead to differentiate itself from the markets they are in.
their customers are liking. In this situation Apple Inc. is very prepared to supply their customers.
Apple’s iPhone and iPad has gained a large share of the smart phone and computer tablet market. Mitchell (2011) noted that competitors have released their own versions, and almost overnight, a new technological commodity has become a competing force in the business world. Apple has introduced many innovative features and has redefined the mobile-device and computer tablet landscape forcing the competition to evolve and play catch-up in many cases (DesRosiers, 2010).
Technology change has naturally been a major factor in Apple's success. The company played a major role in the shift to a mobile computing society, by developing the personal technology devices that would
Strategy. Although Apple’s strategy is already commendable, it is necessary for the company to develop strategies to meet the changing conditions of business. Rafdahl (2014) believed that in doing so, it should consider the collaborative efforts it must undertake together with its suppliers to increase efficiencies and reduce costs. Further, Apple must yearn to enhance its business' process so that its products are also improved. Considerably, there is also a need for Apple to have inventory reduction and reengineer its products to improve the company's efficiency and
The financial analysis reveals that Apple has been undergoing an impressing growth in the net
3. Bargaining Power of Buyers: Recently Apple has received tremendous growth when it introduced the Apple i-Pod, a new product that allowed users to download music to a portable player. Being first to market allowed Apple to enjoy a temporary competitive advantage allowing no bargaining power of consumers until other competitors began offering similar products. Apple also offers unique products in its software and hardware designs that offer different goods than Microsoft or Dell.
One major change for the company in the near future is the sales growth for MacBook’s. Once Apple update their MacBook’s software they can expect an increase in sales. The MacBook’s have been operating off the same software since they have been released. Apple other products have had multiple updates since their release dates. To ensure that customers continue to buy MacBook’s they will have to update the systems or they will become obsolete. As of right now Apple is leading in the tables, and cellular devices industries. Apple should continue to be product and customer driven. The qualities that Apple have lets them make products that are essential to the customer’s everyday lifestyle.
Apple is an interesting topic to talk about, between how many different successful products they have to all the new inventions they make. Apple Inc. Company interest me which is why I choose to write on this topic. Apple is a very successful and popular company and it is no wonder why so many people are buying their products. Not only do they have so many different products but they also have good quality. When customers are looking to buy a new product they look to see what is popular in the market. Apple sells so many different products, when customers look to by new products assume that Apple is a good product since they heard good things about it and it is always advertised.
A competitive strength assessment reveals that Apple’s success is unmatched. They have been able to maintain the leading industry position while developing and introducing new products. Stock price is continuously rising and products are always improving. The current products are improved with software updates and new products are improved by
Apple Company keeps increasing with its sales, this is primarily due to apples competitive edge over other companies with its products and the services it provides. Apple Inc. is very competitive and like to have the upper hand in all products their competitors sell. Apple paid a total of $6 billion for this year’s research and development to have the upper hand on new technology’s and better products. Just last quarter in 2014, the Company introduced many new products like the, iPad Air, its fifth generation iPad and iPad mini with Retina display. Apple also announced there release of the iOS 8 and OS X Yosemite at the Worldwide Developer Conference in June 2014. In September 2014, the iPhone 6, iPhone 6 Plus, and Apple pay were introduced. Then in October 2014, Apple introduces iPad Air 2, iPad mini 3, I Mac with Retina 5k Display, updated its Mac mini, and previews the Apple Watch for all to see. There content developing and innovative technology is always what keeps them ahead of their competitors. Not only does Apple sell quality products but they always provides quality support. Apple provides warranty and product support with it AppleCare which offers a range of support options for the Apple customers. Which is helpful when issue occur in the Company’s products. This makes it easy for customers to get the help they want and keeps the customers satisfied.
Its other item buys are diminishing too for example the IPad. Buys of the iPad in 2016 amid the occasion quarter tumbled from the anticipated 17.3 million to 16.1 million while Macintosh tumbled to 5.31 million from 5.8 million. This is mostly because of the inconsistency of apple items with different stages, for example, android and windows. We live in a time of digitalization where customers need every one of the parts of their lives associated. Innovation is profoundly joined in the everyday existences of individuals. Each individual might want his PC to be matched up with his cell phone and in the meantime with his TV. Similarity is imperative for the advanced buyer.
The life cycle of a product can be broken up into several stages; De Jong identified four main stages in his dynamic market theory (1989). The cycle and the stages making it up are generally seen as an indication of the profits generated by the product within a certain period of time. The stages De Jong identified are the introductory phase (when the product is first introduced to the market), the rapid growth/expansion phase, (when the product starts to break into the market), the maturity phase where sales increase rapidly and then begin to stabilise at some point, and lastly the stagnation phase which is characterised by a drop in sales. The iPad has a dynamic life cycle, in that in one way or another it can be plotted into the four stages. The introductory phase of the iPad is extremely important as it is the stage in which the product is initially promoted to enlighten the public as to what it is the product does and to perhaps allow the company manufacturing the iPad to get a sense of what the retail price will be. The duration of this phase depends on sale promotion and how long it will take for the product to become known within market circles. The competition at this stage isn’t present because the iPad