Apple Swot

Topics: IPhone, Mobile phone, Apple Inc. Pages: 2 (484 words) Published: December 9, 2012
Apple SWOT
Apple’s Strengths
* ITunes Online Store is an excellent source of revenue derived from sales of music and applications for Apple’s iPhone, IPad and iPod touch devices. * Excellent brand loyalty by its customers. Many own multiple products (Mac, iPhone, etc.) * No debt, excellent cash flow. $13bn Net Income in most recent quarter. (Dec 2011). * Excellent Research & Development division that is able to deliver (premium) products that customers will stand in line to buy. * Global reach, Apple’s brand is strong around the globe. * They own their own Operating System (IOS), which is used across their entire product line allowing them to sell a complete product without paying large royalty payments to their competitors. * Apple is an innovator and technology leader.

* Apple’s first time customers, buying iPhone, iPods and iPads, are buying other Apple products, including Apple’s desktop and laptop computers based on the most recent quarter. Apple’s Weaknesses

* Weak integration with Microsoft Office makes their product line less attractive to business enterprises. * Google’s Android Operating system is slowing Apple’s growth rate in the mobile phone market. * High price. Apple’s products are typically higher in price than its competitors. Price sensitive consumers tend to not consider Apple in buying decisions. * Apple tends to lead innovation and then watch other companies control the market once it has reached the tipping point and wider consumer adoption. Apple’s Opportunities

* ITunes will continue to generate sales from music and applications, however I believe in the next two years Applications for the iPhone, iPod touch and iPad will generate more revenue than music downloads. Apple receives a 40% gross margin on all application sales. * Cross product sales will continue to increase as more and more people choose Apple. * Product development cycles have shortened in the mobile phone market, giving...
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