• iTunes Music Store is a excellent source of revenue, especially with the iPod and the accessibility on Windows platform. • Apple Computer are expert in Developing own software and hardware. • Apple’s niche audience provides the company with some lagging from the direct price competition. • Giving a face-lift to desktop and notebook lines.
• Web technology can be used to improve product awareness and sales. • Low debt—more maneuverable.
• Apple Computers have good brand loyalty.
• Partnership with Intel Computers in 2006 – Present. • Strong Research & Development Department.
• Weak relationship with Intel and Microsoft.
• Weak presence in business arena.
• The product life cycle of Apple products are very small for that reasons revenues are more depend on launch of new products and services. • Weak presence in markets other than education and publishing. • Slow turn around on high demand products.
• Apples market share is far behind from major competitor Microsoft. • In past the relationship between Steve jobs and employee were not good which result in reputation loss. Opportunities
• Increase in worms and viruses on PCs so the antivirus solution can be developed by Apple • Large population (Gen X&Y) which are extremely individualistic and name brand conscious.
• The ties of apple other companies are weak, Apple can develop good relationship for joint ventures • Downloadable music and MP3 players are highly marketable. • The online sales of computer are increasing with rapid speed. • The laptop market growth is high; Apple Computers should focus to develop new models to cater the need of customers. Threats
• Companies not seeing Apple as compatible with their software. • Apple facing strong competition from Dell, HP, Sony and Toshiba in laptop segment. • Downloading free music from other online source without paying cost is common it may impact the iTunes sales. • Apple software, Cell phone and hardware are expensive as compared to other competitors such as Dell. • The long lasting recession may impact the sales of the company due to higher prices of the products and services • Microsoft launched Microsoft Vista, Windows 7 which is gaining market share. • The switching in technology is very fast.
Closed ecosystem gives total control of user experience from R&D to retail sale. Competitors have to fight for shelf-space and use whatever Microsoft OS and Intel reference designs come out, which leads to a lot of $499 junk laptops loaded with crapware, on a shelf at OfficeDepot where the main user purchase assistance is "LetmeseeifIhaveoneinthebackstillinthebox". Apple gets to set the specs in detail, and deliver to the customer through a controlled retail experience (Apple Store, Apple On-line Store) that helps them explain the value to the customer and extract a premium for that value.
Higher R&D costs than Dell etc. due to above. Slightly higher channel costs due to above. Can't be distracted by every dead-end niche (headless iMac) though vocal minorities will attempt to draw Apple into these traps. Will never compete at the bottom "junk" end of the market and that will limit unit sales.
iPhone, bootcamp, and virtualization can be re-entries into corporate sales if Apple stakes out a premium position rather than chasing the beige box market. iPhone is already phenomenally successful and can be leveraged to much higher levels with attention to corporate market and by developing multiple price points. Set top box market has a dominant player, Tivo, with many weaknesses that could be exploited...