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Apple SWOT analysis 2013

Strengths Weaknesses

1. Customer loyalty

1. High price

combined with

2. Incompatibility with

expanding closed

different OS


3. Decreasing market

2. Apple is a leading


innovator in mobile

4. Patent infringements

device technology

5. Further changes in

3. Strong financial



6. Defects of new



cash, gross profit

7. Long-term gross

margin 43.9% and no debt)

margin decline


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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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
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