Apple's Swot

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  • Published : April 8, 2013
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Strengths:
Apple is more valued than $500 billion on the market, and they didn’t get to where they are by snoozing, they got their by being an industry trailblazer and consistently innovating. •The company possesses one of most globally recognized brands, right up there with Coca-Cola and McDonald’s. •Brand loyalty is incredible, people will line up in the freezing cold overnight just to be one of the first to get their hands on the new iPhone, iPad, or Mac. Weaknesses:

Some analysts say that without legendary founder Steve Jobs at the helm innovation may slow, as Tim Cook is a good CEO but just not the same. •Apple operates and sells items in one of the most competitive sectors in the world, and will always have competition that will offer something very similar for a •bit less.

Competition from deep-wallet companies such as Google, Microsoft, and Amazon may sometimes lead to the compression of margins, as in the past quarter gross margins came in at 40.0%, below the consensus of 40.8%. •Recent problems from their main supplier and producer, Foxconn, has caused investors to get weak in the knees as shipment dates have been pushed back and customers who pre-ordered devices have been faced with several week waiting periods. •While this can be used as an advantage if an investor is smart, the recent price movement in the stock has been volatile, rising $100 and then falling $100 in less than 3 months. Opportunities:

While the past two quarters have not been the best for the company on a financial note, the first quarter of 2013 should be incredible, as the company should benefit immensely from the holiday season. •Over the past weeks the company has unveiled a flurry of new items, including the all-important iPhone 5, the iPad mini, a new 13-inch MacBook Pro, a new Mac, and a new iPod Touch, proving that the company is still innovating for the future. •The iPad mini puts Apple’s foot in the small tablet market, a space that for a time was...
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