@media (min-width:550px) { Patents, especially software and design patents, are often vague and technology companies often breach them. Apples product ecosystem is comprised of: Apples ecosystem is the result of the companys ability to design a wide variety of integrated proprietary hardware, software, applications and services. Apple needs to focus more on. Available at: Alphabet Inc. (2019). Worldwide Wearables Market to Top 300 Million Units in 2019 and Nearly 500 Million Units in 2023, Says IDC. Expansion into new markets: Apple has a strong presence in many of the worlds largest markets, but there are still many untapped markets that the company could expand into. Form 10-K for the Fiscal Year Ended September 30, 2019. High Priced Products 2. [6] These campaigns resulted in two very well-known advertisements 1984 and Think Different and helped Apple to create an iconic brand image. [23], A research done by Research and Markets[20], indicates that AR market could be worth US$60.55 billion by 2023, growing on average by 40.29% every year. Apple's Strengths. background-color: rgb(51, 51, 51); Online market: the online market offers music platforms such as Apple music to greatly expand their business to a much wider audience. Apple Inc. is an American multinational technology company specializing in consumer electronics, computer software, and online services. "Few current business concepts are more prone Mar 31, 2022 by Abdul Momin. } Availability: on all iPhones, iPads, and iPod touch models that are running iOS 8.4 or later as well as Android. Competitors such as Samsung, Google, and Microsoft have developed their own innovative products that compete directly with Apples offerings. It identifies all the key strengths, weaknesses, opportunities and threats that affect the company the most. The Company is vigorously defending infringement actions in courts in several U.S. jurisdictions, as well as internationally in various countries. Wrist-Worn Wearables Maintain a Strong Growth Trajectory in Q2 2019, According to IDC. By tapping into the advertising business, through its planned iDSP program, Apple could create a brand-new source of revenue for its bottom line. Recently, the company has focused its efforts to strengthening its own in-house advertising and marketing teams by attracting a lot of new talented people to the internal agency. } [28] While its not the biggest market opportunity for Apple, the company could increase its efforts on Siri development. [29] IDC forecasts that the market for wearables will grow on average by 22.4% until 2023, reaching 489.1 million units. The lack of innovationUnder Steve Jobs, Apple introduced many iconic industry-changing products like the iMac, iPod, iTunes, iPhone, App Store, and iPad. ET Smartphones and tablets are becoming a commodity, which could impact the companys gross margins. This means that customers must purchase Apple products in order for them to be used together without any modifications or additional software purchases. iOS (Apples proprietary mobile operating system) is the only competitor to Googles Android, which runs on nearly every other smartphone sold in the world. As the market matured and competition intensified, Apple started to lose its market share. The Worlds 50 Most Innovative Companies 2019. Apples brand is the worlds most valuable and recognizable brand. Strengths in Apple SWOT Analysis 1. Apple SWOT Analysis | Free SWOT Analysis [1] Mac products include MacBook Air, Mac mini and Mac Pro and run macOS operating system. The features included both on a software and hardware level within these devices make them stand out against competitors. Apple Inc., established in 1977, is the largest technology company by revenue and one of the most valuable companies, both in terms of market capitalization and brand value, in the world. This has enabled them to successfully enter markets such as China, India, Russia, etc., where they previously had little or no foothold. Apple generated a revenue of $365 billion in 2020 and 52% of it was from iPhones. Natasha Mascarenhas. In recent years, Apple has seen its market share reduce as other competitors emerge. } #text-3105903767 { The list is as . Apple Inc. is an American multinational technology company that designs, develops, and sells consumer electronics, computer software, and online services. Apples reliance on a proprietary operating system and closed ecosystem have been both a strength and a weakness. Apple has been considered one of the most innovative technology companies in the world. Soundcharts compiles all these Apple Music statistics, creating a comprehensive summary of all current and historical charts positions, updated in real-time. Strong marketing: Apple is known for its effective marketing campaigns that focus on the benefits of its products and the emotional connection customers have with the brand. Over two-thirds of Apples revenue in Q4 2020 was generated by sales of iPhones alone, indicating that if the product fails to sustain strong sales, Apples financial health could suffer significantly. What does Apple do | How does Apple make money | Business Model. Pgina de inicio. Why should Apple venture into either of these markets? on: function(evt, cb) { Change). Google also allows its virtual assistant to be added to third party hardware. height: 150px; Such a high degree of vertical integration has provided Apple with a significant competitive advantage. Apples low R&D spending shows how effectively its R&D budget is managed. Apple SWOT Analysis Apple Inc. is an American multinational technology company that designs, develops, and sells consumer electronics, computer software, and online services. Smartphones. { The company has a loyal customer base and is one of the most valuable companies in the world, with a market capitalization of over $2 trillion as of March 2023. callback: cb Strengths 1. The companys strengths have allowed them to maintain a solid competitive edge. } Apple products are some of the most popular, and unfortunately, that means they often have to contend with counterfeiters. The end goal of R&D spending is to create a competitive advantage and grow the companys revenue. Augmented and virtual reality markets will be worth US$104 billion by 2023, 1. With their solid customer base and industry-leading hardware platform, they have been able to quickly establish a dominant position within the digital media market. } Apple SWOT analysis framework is a strategic management decision-making technique that identifies the firm's most important issues based on internal and external business conditions. From iPhones to iPads, MacBooks, and much more, their product range is extensive enough for everyone, from kids, just starting out using computing devices up to more experienced professionals looking for the latest technological advancements found only within Apple products. Strengths include the ecosystem, brand recognition and customer loyalty, and management and culture.. From introducing groundbreaking features like facial recognition through Face ID (iPhone X) or augmented reality apps through ARKit (iPhone 8), Apple pushes boundaries by bringing state-of-the-art solutions into consumer markets faster than any other competitor can keep up. 2019, Android dominated the smartphone market with 87% market share compared to iOSs 13% market share. This Apple SWOT analysis reveals how one of the most successful world's companies used its competitive advantages to become the dominant player in the tech industry. Apple Computer Company was founded in April 1976 by Steve Jobs, Steve Wozniak and Ronald Wayne. #gap-325806325 { For example, consumer tastes may change or there could be a component shortage for a specific product. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); About - Privacy Policy - Returns and Refund Policy, International Business Machines Corporation, https://s2.q4cdn.com/470004039/files/doc_financials/2019/ar/_10-K-2019-(As-Filed).pdf, https://www.interbrand.com/best-brands/best-global-brands/2019/ranking/, https://www.forbes.com/powerful-brands/list/, https://www.cnbc.com/2019/11/05/apples-advertising-agency-media-arts-lab-lays-off-several-employees.html, https://www.bankmycell.com/blog/smartphone-brand-loyalty-during-trade-in-2019/, https://brandkeys.com/wp-content/uploads/2019/05/2019-CLEI-Category-Winners.pdf, https://brandkeys.com/wp-content/uploads/2014/12/2014-Brand-Keys-Loyalty-Leaders-List-PR-Finalv3.pdf, https://brandkeys.com/wp-content/uploads/2015/02/Brand-Keys-CLEI-2015.pdf, https://brandkeys.com/wp-content/uploads/2016/10/2016-Loyalty-Leaders-Top-100-List.pdf, https://brandkeys.com/wp-content/uploads/2017/09/2017-CLEI-table-of-category-winnersFINALfeb1.pdf, https://images.samsung.com/is/content/samsung/p5/global/ir/docs/2018_con_quarter04_all.pdf, https://abc.xyz/investor/static/pdf/20180204_alphabet_10K.pdf, https://microsoft.gcs-web.com/static-files/7c96b326-33bc-4b84-8abb-7afd7a517ea3, https://www.canalys.com/newsroom/china%E2%80%99s-smartphone-market-falls-14-in-2018-with-just-under-400-million-units-shipped, http://files.shareholder.com/downloads/AAPL/3883149972x0xS1193125-12-444068/320193/filing.pdf, http://files.shareholder.com/downloads/AAPL/3883149972x0x789040/ED3853DA-2E3F-448D-ADB4-34816C375F5D/2014_Form_10_K_As_Filed.PDF, https://www.forbes.com/sites/ywang/2017/09/12/why-iphone-x-isnt-the-answer-to-apples-china-problem/, https://www.fastcompany.com/most-innovative-companies/2019, https://www.fastcompany.com/most-innovative-companies/2018, https://www.forbes.com/innovative-companies/, https://www.idc.com/getdoc.jsp?containerId=prUS45679219, https://www.researchandmarkets.com/research/dm5djr/augmented_reality?w=4, https://techcrunch.com/2017/01/11/the-reality-of-vrar-growth/, https://www.macworld.com/article/3446839/apple-ar-glasses-rumors.html, https://www.cnet.com/news/alexa-vs-google-assistant-vs-siri-the-state-of-voice-after-google-io-and-wwdc-2019/, https://www.businesswire.com/news/home/20190822005478/en/Global-Intelligent-Virtual-Assistant-IVA-Market-2019-2025, https://www.businesswire.com/news/home/20191216005029/en/Worldwide-Wearables-Market-Top-300-Million-Units, https://www.idc.com/getdoc.jsp?containerId=prUS45521319, https://www.globenewswire.com/news-release/2019/10/31/1938647/0/en/Wearable-Devices-Market-worth-62-82-billion-by-2025-Exclusive-Report-by-Meticulous-Research.html, https://www.pwc.com/us/en/industry/entertainment-media/assets/pwc-cis-wearables.pdf, https://www.productchart.com/smartphones/, https://www.idc.com/promo/smartphone-market-share/os, https://www.idtheftcenter.org/2018-data-breaches, https://www.statista.com/statistics/263401/global-apple-iphone-sales-since-3rd-quarter-2007/, https://www.kitco.com/news/2019-12-31/U-S-Dollar-can-still-roar-in-2020-even-as-it-ends-2019-with-a-whimper.html, Computer hardware (iMac, iMac Pro, MacBook, MacBook Pro, MacBook Air), Worldwide 509 retail stores in 25 countries (271 stores in the U.S. 238 stores in other 24 countries) and online stores in over 100 countries, 1. Disclaimer It carries a strong brand reputation. Apple SWOT Analysis Posted on March 3, 2023 by Daniel Pereira Founded by Steve Jobs and Steve Wozniak in 1976, Apple has become one of the world's most recognizable and valuable brands. Companies engage in R&D so they can introduce innovative products and services that satisfy ongoing consumer needs for newer and better offerings. Unlike Spotify, Apple music does not offer a free ad-supported version. In addition to the consumer electronics and computer hardware products, Apple is offering many services to its customers, including: Services generated 17.8% of the companys revenue and was the second fastest growing category for Apple, growing 16% in 2019. Available at: Interbrand (2019). } In 2019, the companys net sales through its direct (sales in companys 508 stores in 25 countries and sale through online stores) and indirect distribution (sales made by third-party sellers) channels accounted for 31% and 69%, respectively.[1]. In 2019, Apple spent only 6.2% of its revenue on R&D or in absolute numbers US$16.217 billion, which was comparatively lower than Alphabet Inc.s US$21.419 billion, Samsung Electronics US$16.952 billion or Microsoft Corporations US$16.876 billion. Business Model Template The company was founded in 1976 by Steve Jobs, Steve Wozniak, and Ronald Wayne and is headquartered in Cupertino, California. padding-top: 30px; Form 10-K for the Fiscal Year Ended September 29, 2012. color: rgb(255, 255, 255); Type above and press Enter to search. Since hardware and software are so closely intertwined, any necessary repairs can be expensive due to the limited availability of parts and tools. Form 10-K for the Fiscal Year Ended June 30, 2019. Available at: Brand Keys (2016). [16] It is also the second largest premium smartphone market, which is the Apples main target market for its products and services. padding-top: 20px; Integration of AI and machine learning: Artificial intelligence and machine learning are becoming increasingly important in the tech industry, and Apple has an opportunity to integrate these technologies into its products and services. padding: 0 0px 0px 0px; } Apple is actively fighting against this problem, but it persists as counterfeiters continue to find ways around their efforts. At the moment, software is the major differentiator between Apples iPhones and its rivals devices. Apple AR headset rumors: Apple may release headset in 2022, glasses by 2023. This article will focus on Apple SWOT analysis, a popular and successful company. Cheaper hardware also tends to mean reduced quality, and customers may end up having a negative experience when using these knockoff items. -Beats 1: a 24/7 radio driven by Zane Lowe features an all around the clock live broadcast from DJs based in Los Angeles, New York, and London. Strong Brand Value According to Interbrand's Best Global Brands 2022 ranking, Apple won the title of top global brand for the tenth consecutive year with a brand value of whopping $482,215 million. Apple is known for producing high-quality, innovative products focusing on design and user experience. The company is still considered as one of the most innovative worlds businesses and it is the largest worlds technology company, even though its R&D spending is lower than its major rivals budgets. Want Receive new Business Model Analysis direct on your inbox? } The company strongly emphasizes design and user experience, which has helped to differentiate its products from its competitors. Apple music is available in more than 100 countries, including the U.S, Canada, the U.K etc. Business Model Canvas Examples (LogOut/ Financial leverage: allows the service to use their balance sheet to expand their business and increase profits. When considering Apples strengths, it would be remiss not to mention the companys leading technological edge. padding-top: 0px; Available at: Christensen, N. at Kitco (2019). })(); #text-3118262510 { perform swot analysis for google. Counterfeiters often produce products with cheaper materials than what Apple uses, allowing them to be sold at a much lower price point. Apple revenue breakdown by product 2019 (% share of total revenue). Available at: BankMyCell (2019). 2017 Winning Brands Brand Keys Customer Loyalty Engagement Index. Companies Profitability --divider-width: 100%; Similarly, their services, such as iCloud storage and iTunes, also have higher prices than competitor versions. 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