Apple: SWOT Analysis

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SWOT analysis of Apple
This is an Apple Inc. SWOT analysis for 2013. For more information on how to do SWOT analysis please refer to our article.

Company background
Name Industries served Apple Inc. Computer hardware Computer software Consumer electronics Digital distribution Worldwide U.S. Tim Cook $ 156.508 billion (2012) $ 41.733 billion (2012) 72,800 Samsung Electronics Co., Ltd., Amazon.com, Inc., International Business Machines Corporation, Cisco Systems, Inc., Google Inc., Microsoft Corporation, Dell Inc., LG Electronics, Lenovo Group Limited, Hewlett-Packard Company, Sony Corporation and many others.

Geographic areas served Headquarters Current CEO Revenue Profit Employees Main Competitors

Apple Inc. is an American multinational corporation, which designs, manufactures and sells personal computers, consumer electronics and software, and provides related services. The company has experienced a tremendous growth from 2001 when it has introduced its iPod mp3 player. Apple Inc. is considered to be the most successful electronics company in the world. You can find more information about the company in its official website or Wikipedia’s article.

SWOT analysis of Apple

Apple SWOT analysis 2013
Strengths
1. Customer loyalty combined with expanding closed ecosystem 2. Apple is a leading innovator in mobile device technology 3. Strong financial performance ($10,000,000,000 cash, gross profit margin 43.9% and no debt) 4. Brand reputation 5. Retail stores 6. Strong marketing and advertising teams

Weaknesses
1. High price 2. Incompatibility with different OS 3. Decreasing market share 4. Patent infringements 5. Further changes in management 6. Defects of new products 7. Long-term gross margin decline

Opportunities
1. High demand of iPad mini and iPhone 5 2. iTV launch 3. Emergence of the new provider of application processors 4. Growth of tablet and smartphone markets 5. Obtaining patents through acquisitions 6. Damages from patent infringements 7. Strong growth of mobile advertising market 8. Increasing demand of cloud based services

Threats
1. Rapid technological change 2. 2013 tax increases 3. Rising pay levels for Foxconn workers 4. Breached IP rights 5. Price pressure from Samsung over key components 6. Strong dollar 7. Android OS growth 8. Competitors moves in online music market

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 has a full range of apps, software and products that are interlinked and support each other. Second, new products and supplements will be released soon (iTV), hence expanding the ecosystem. Third, Apple has a strong customer loyalty, which increases due to Apple’s closed ecosystem, which, in turn, is supported by customer loyalty. So the combination of Apple’s expanding closed ecosystem and customers’ loyalty increases firm’s competitive advantage. 2. Apple is a leading innovator in mobile device technology. Apple has been chosen as the most innovative company in the world for the 3 time in 2012. Company’s core competency of producing innovative products is the strength the company builds upon and is able to bring the most innovative products to the market. 3. Strong financial performance ($10,000,000,000 cash, gross profit margin 43.9% and no debt). Apple’s financial performance is one of the best among many companies. Company currently (end of 2012) holds about $10,000,000,000 in cash, which can be used for acquisitions, buying back company shares and other matters. It also has higher gross profit margin than its main competitors, which is equal to 43.9%. Company has no debt and is not directly affected by interest rates or credit markets. 4. Brand reputation. Apple has a reputation of highly innovative, well designed, and wellfunctioning products and sound company performance. Apple brand is valued at $76.5 billion and was the...
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