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
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
One key element of Apple’s strategy in computers, personal media players, tablet computers, and smart phones is product innovation, diversification and development. Over the years Apple has been very successful in integrating software and hardware in new developing products. Despite the struggling economy in recent years, Apple has been able to grow their market share and stay ahead of the game.
their customers are liking. In this situation Apple Inc. is very prepared to supply their customers.
Every company’s biggest challenge is competition. In analyzing the 2012 case study, it can be said that Apple’s biggest challenge is competition and new entrants to the market. Their supplier power is high, buyer power is high, and substitute goods concerns is relatively high. The case study highlighted that as Apple continued to successfully produce great products, and increased sales worldwide, competitors saw Apple as a threat and tried to copy their style. According to the case study, Apple’s biggest concerns for the company going into the third quarter in 2012, were how Google’s entry into the market for smartphones and tablets would affect the company’s sales of the iPhones and iPads. In 2011, iPad and iPhones contributed tremendously to boosting the company’s performance in 2011 and 2012. Apple’s biggest competitor with regards to mobile devices is Samsung, which managed to attain the title of the world’s largest smartphone seller in 2011 and early 2012.
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).
The financial analysis reveals that Apple has been undergoing an impressing growth in the net
In the last five years, Apple’s market share exceed over 255%, which can be compared to doubling the NASDQ’s returns. Many investors start to invest in Apple which makes their iPads and iPhones very popular. One main component to their competitive advantage is Apple’s long term strengths. Apple’s protected ecosystem and their brand outlook are two of their long term strengths. Apple makes their company unique by
4. Threat of Product Substitutes: In today’s society being first to market is one of the best ways to obtain market share and it forces competitors to catch up while you continue to innovate. Apple was successful at doing this with the i-Pod, where competitors are just finally catching up although they might be too late. The computer industry was completely saturated with substitute products Apple found a new industry to compete in which allowed it to diversify itself.
Apple products are in demand and it makes them attract a wide customer base. The company has over 400 retail store and is still growing in almost 15 different countries. Apple even has an online store which is very affective for some of its customer base. Apple used superior design techniques, correctly priced items, and the hype to sell it products. () There superior hard drive and simple to use Apple products help everyone with their daily needs.
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
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.
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
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.