Apple SWOT 2024 | SWOT Analysis of Apple (2024)

Company:Apple Inc.
CEO:Tim Cook
Year founded:1976
Headquarter:Cupertino, California, USA
Employees (FY2023):161,000
Type:Public
Ticker Symbol: AAPL
Market Cap (Jan, 2024):$2.82 Trillion
Annual Revenue (FY2023):$383.28 Billion
Profit | Net income (FY2023):$96.99 Billion

Products & Services: Computers | Software | Phones | Watches | Tablets | Cloud Technology | Accessories | Music Platform | Cashless payment
Competitors: Microsoft | Lenovo | Google | Samsung | Toshiba | Dell | Sony | HP | Acer | Netflix | Disney | Amazon | Chase | Wells Fargo | Paypal | CitiBank | U. S. Bank | Youtube

Did you know?
In 2013, one of the original Apple computers was sold for more than $671,400 at German auction.

Apple, Inc. is one of the most successful companies in the world. The company has been providing robust technology products and exceptional software services. Apple is headquartered in Cupertino, California and was founded by Steve Jobs.

Apple launched its first product ‘Apple 1 computer’ in 1976. Since then, Apple has grown exponentially in terms of products and services.

Today, one of the most successful products of Apple is the ‘iPhone’. In the fiscal year 2022, iPhone sales of$205 Billionrepresent over half (52%) of apple’s overall revenue of$394 Billion.

Tim Cook is the current CEO of the company.

SWOT analysis of Apple

Here’s a detailed analysis of Apple’s strengths, weaknesses, opportunities, and threats.

Apple’s Strengths

1. Most Valuable Brand

Apple is ranked #1position for the 9th consecutive year by Interbrand – with a brand value of $408 Billion. Followed byAmazonranked at #2 with a brand value of$249 Billion, and Microsoft ranked at #3 with a brand value of$210 Billion.

2. Globally Iconic

Apple is one of the most reliable company when it comes to personalized advanced computers and smart technology devices. It has millions of loyal customers with steady increment.

3. Top Technology

Apple was the first to introduce some of the most innovative products that have changed the world (iPhones, iPads, AirPods). Apple is still determined to build and craft better, more proficient technology devices.

4. Brand Of Choice

5. Proficient Research & Development

Apple puts dedication into its product designs. Careful study and extensive research is performed to help understandcustomer needs and market trends. Apple continues to invest a substantial amount of money in research and development for future growth and a competitive edge. For example, Apple spends $26.25 Billion (about 7%)of its revenue in R&D.

6. Sustainability made Possible through Liam

Liam is an iPhone recycling robot that breaks down and dissects an iPhone. It strips them all the way down to a single bolt. Most parts of an iPhone can be reused.

Liam is designed to yield as many reusable parts as possible. These reusable parts are then categorized and safely stored so they can be used for new manufacturing.

7. Expansion in services

Apple has been expanding its services portfolio for many years. For example, about 20% of Apple’s annual revenue ($78 B out of $394 B in FY 22) came from its services, which is the second biggest contributor to its revenue after the iPhone (52% of its revenue).

Apple’s services include digital content stores, streaming services, iCloud, AppleCare, and payment services etc. Recently, Apple has introduced many new services, such as Apple TV+, Apple news+, Apple Card (credit card services), Apple Arcade (game subscription), and Apple Fitness+ etc.

Apple’s Weaknesses

1. High Priced Products

Apple’s products can be considered a luxury due to their premiumprices. The products are priced for middle and high-income consumers. Low-Income consumers can’t simply afford Apple products.

Due to their premium pricing, only middle or high-earning individuals can afford their products.

2. Limited Advertisem*nt & Promotions

Apple has solidified their grounds by establishing loyal customers, even with limited advertising resources. Apple marketing relies heavily on its iconic and flagship retail stores.

Because of their success, Apple does not feel the need to have excessive spending towards advertisem*nt in comparison to other big brands such as P&G, Pepsi, Verizon, and Coca Colaetc.

3. Entering into Area of Non-Competency

Apple is rapidly expanding into new servicessuch as video content streaming, game streaming, payment services (credit cards) – competing with the dominant players such as Netflix, Disney, Citi, Chase, Paypal, etc.

They might be entering into areas in which they lack competencies; remember the failure of Apple maps.

4. Incompatibility With Other Software

When a customer buys an apple product, they enter the Apple universe. Apple’s products do not support other software or technologies making them incompatible with other devices.

Customers have to exclusively purchase Apple apps or accessories to continue using their Apple products.

5. Allegations of Tracking

Tracking users undermines trust. Apple has been accused of using tracking apps in its phones, which revealed the precise location of users.

Even though the latest version of Apple’s phones gives users the right to decline the tracking, trust is difficult to regain once it is lost.

6. Unfair Business Practices

Apple is under investigation for unfair business practices after receiving payments to make Google’s search engine as the default search engine for its Safari web browser. Collusion between the two giants makes it difficult for rivals to enter and expand into the search engine market.

7. Integrate Stronger Parental Control Software

Parents allege that Apple’s parental control software isn’t good enough. And that’s true because popular apps such asInstagram,YouTube,TikTok, etc., are integrated withindependent control systems, which make it a technological nightmare to monitor and track children’s social media activity. AlthoughAppleandGooglehave both boasted that their parental control is the best, kids easily find numerous ways to bypass those controls.

Apple’s Opportunities

1. Consistent Customer Growth

Apple has been dominating the technology sector for years now. They provide top quality and cutting-edge technology that offers a breakthrough in customer experience.

Their customerretention rate of 92% is phenomenal. Apple can always rely on the power of the internet for future opportunities to gain new customers and form new alliances.

2. Qualified Professionals

Apple’s researchers, developers, and product specialists are a team of highly qualified professionals that have years of experience in branding consumer products. With the expansion of their team, Apple can continuously build new opportunities.

3. Expansive Distribution Network

Apple Inc. has the opportunity to expand its distribution network. Currently, the distribution network that Apple has is very limited and leaves room for minimal growth.

Apple can generate higher revenue and sales if it focused on creating an expansive distribution network. Furthermore, the company can benefit from diligent marketing and promotions.

4. Lack of Green Technology

Apple is yet to launch products that are created using green technology. The company has not yet implemented or participated in creating sustainable technology that is eco-friendly.

5. Smart Wearable Technology

Smart wearable technology will soon dominate the world. According to Forbes, smart wearable technology device sales will double by 2022. It will become a $27 billion+ market with 233 million unit sales.

Apple has the opportunity to continue to grow beyond justApple watchandAirPods into otherwearablecategories.

6. Utilize Artificial intelligence

To increase its profit margins and have a strong market position, Apple should utilize artificial intelligence. Recently, the company has extended its AI portfolio.

In the year 2017, Apple acquired Regaind, a French AI startup and DeskConnect, an AI tool. The former acquisition helps Apple to integrate intelligent search to the photos app on the iPhone, while the latter acquisition automates tasks by helping the consumers to arrange apps and features with a string of commands.

The company should focus on extending its AI portfolio to have a strong foothold in the future.

7.Expand Music Streaming Services

The youthful population and rapid economic growth in emerging economies offer immense opportunities for expansion. Apple is already planning to expand its music streaming services to 52 emerging markets in Africa and the Middle East.

8.Deliver Self-Driving Software Technology

The demand for autonomous is increasing rapidly. Apple has the expertise needed to deliver self-driving car technology rather than fully-functional autonomous or electric cars.

Apple has the opportunity to focus on delivering self-driving software technology instead of building an actual car like Tesla does.

On aBloomberginterview, Apple CEO Tim Cook says:

” We are focusing on autonomous systems. And clearly, one purpose of autonomous systems is self-driving cars. There are others. And we start to see it as a mother of all A.I. projects. It’s probably one of the most difficult A.I. projects actually to work on.”

9.Kia Motors to build Apple’s driverless car

Apple has partnered with Kia Motors (parent company – Hyundai) to assemble driverless electric cars in Georgia. According to the Wall Street Journal, Kia will begin production by 2024 and produce about 100,000 vehicles in the first year.

10.Expanding into Chip Manufacturing

Apple announced that it’s going to start manufacturing its own chips and semi-conductors going forward, competing with Intel and Broadcom etc. The tech giant is already on-boarding engineers for a new South California location.

Apple’s continually expanding silicone teamto make next-gen wireless silicone. The company’s chip manufacturing maneuver boosted its total market value, propelling it close to $3 trillion.

11. Dominating in Smart Speakers

Apple is dominating the market for smart speakers. The tech giant’s HomePod mini has been a massive success. According a report by Strategy Analytics, Apple now has a 10.2% market share after selling 4 million smart speakers.

12. Fitness Feature in Apple Watch

While the Apple Watch’s activity rings are a neat feature that allows you to monitor your exercise routine and frequency, users say that it’s time Apple incorporates a readiness score feature like the Oura and Fitbit.

One of the best benefits of a readiness score is that it helps prioritize when to rest and recover. While Fitbit and Oura have had this feature for a long time, Apple is yet to incorporate a feature like this, and users can only access this feature via third-party apps such as AutoSleep.

13. Buy Now, Pay Later Service

Apple introduced a new service called “Apple Pay Later” in the US, enabling customers to buy and pay for products over time. With this new service, users can split their purchases into four payments spanning six weeks without additional charges or interest fees.

Moreover, they can quickly and conveniently repay their loans through Apple Wallet. Users can apply for loans ranging from $50 to $1,000 and use them for in-app and online purchases made through iPad and iPhone devices from merchants who accept payments via Apple Pay.

More than 85% of American retailers currently accept Apple Pay – a figure likely to increase. However, the service is only available to a select group of users, with plans to roll it out more widely.

13. Expansion in Indian Market

Tim Cook (Apple CEO) says he is “very bullish on India.“

Since Covid, Apple has seen substantial revenue growth in India because a record number of people are switching from android to iOS devices.To further increase its growth and market share in India:

• Apple has established its retail store (Mumbai and Delhi) and expanded its online presence.
• Apple is figuring out trade-ins and other financial options to make its product more accessible to Indian consumers.

Apple’s Threats

1. After effects of Coronavirus Outbreak

Apple is highly dependent on China for its manufacturing and supply chain. The recent events have significantly affected and disrupted its operations. In addition, about19 % of its $394 billion in revenue came from China (a big market for Apple). The outbreak has significantly affected and may continue to disrupt Apple’s business in coming years.

2. No Effective Countermeasure for Air Tags

While Apple’s AirTags are meant to help people find frequently misplaced items using Bluetooth, the technology is also being used with malicious intent. There have been a lot of instances where criminals have used AirTags to steal cars and, worst, stalk people.

Apple commented that the Find My app will immediately let users know if an unknown accessory is tracking them. However, there is yet to be a more permanent solution.

3. Apple Bullied By Counterfeits

Apple has become vulnerable to third world countries illegally utilizing the brand image to sell counterfeit products. The illegal dealers sell Apple counterfeit products at the same value as an original Apple product.

Counterfeit products can make potential customers believe that it is a product made by Apple with low quality. big news can result in negative reviews and bad publicity for the company.

4. Increasing Competition

Although Apple as abrand has solidified itself, it still faces threats from competitors. With the advancement in technology, brands like Samsung, Google, and Dell are giving Apple tough competition.

As the competition is getting stronger, Apple either has to introduce new technologies or revise its pricing policy to stay ahead of its competition.

5. Market Penetration

There has been a significant change in market penetration by other brands in the smartphone market. Companies like Samsung, HTC, and Lenovo are using Android software to create new smartphones.

Currently, Android has captured 72.23% of the market share, while Apple has only 24.55% of the market share globally.

6. China Tariffs

US government has imposed a higher tariff on imports from China, increasing the overall cost of the products. Consequently, it adversely affects the gross margin on the products and may make the product more expensive for customers.

7. Lawsuits

60 class-action lawsuits have been filed against Apple. Consumers were upset and baffled when Apple announced that it deliberately throttles CPU performance on iPhone models with older and degraded batteries.

The tech giant said that it did so to prevent unexpected shutdowns. Despite the clarification, consumers felt betrayed because they that Apple does not believe in transparency. This led to a number of people filing lawsuits against the company.

The first class-action lawsuit was filed on December 21st, 2017 and alleged that Apple’s actions not only negatively affect the resale value of their products but also forces its users to upgrade to newer versions prematurely.

8. Backdoor Mechanism

Apple has been under constant pressure by government agencies to unlock the iPhone via a backdoor, which means unlocking the encryption of the iPhone and giving access to its data.

In several instances, Apple has denied providing the backdoor mechanism because it can be exploited by the bad guys, which eventually exposes the security of millions of iPhone users.

9. Mark Zuckerberg Criticized Monopoly ofiPhone’s App Store

In a recent webcast, Mark Zuckerberg, Facebook’s CEO, criticized Apple for its monopoly on App Store and hefty charges.

Mark Zuckerberg states that:

iPhone App Store ” blocks innovation, blocks competition,” and “allows Apple to charge monopoly rents.”

Apple charges a 30% cut for in-app purchases through its app-store. The company is often criticized because a 30% cut is a significant commission for small businesses or app developers.

10. Apple Motions for Case Dismissal

The CCI (Competition Commission of India) recently alleged that Apple is eyeing for a complete monopoly, dominating with its app development in the country. The CCI filed the complaint after going through numerous allegations, stating that Apple is compelling developers to use its proprietary system, wiping out existing competitors.

However, Apple responded by stating that the allegations are completely baseless because they have a relatively smaller market share compared to Google, which clearly dominates the Indian tech market. Apple has moved to have the case dismissed.

11. Common USB-C Charger Law in European Union.

European Union has passed a new law that requires all electronic devices (phones and tablets) to have USB-C chargers by the end of 2024. However, Apple uses lightning chargers (a proprietary technology) in all its iPhone devices. The company will have to comply with the mandate to sell its products in the European Union.

The new law will reduce production and disposal as consumers will not have to buy different chargers for different devices.

12. General Motors Will Phase Out Apple CarPlay On Upcoming EVs

As part of its plan to completely phase out gas-powered vehicles by 2035, General Motors has announced it will no longer include Apple CarPlay and Android Auto in its future electric cars, starting with the 2024 Chevrolet Blazer.

CarPlay and Android Auto allow drivers to access their phone’s features on their car’s dashboard screens, but GM intends to replace them with its own Google-based software.

According to Reuters, this new firmware will come with Google Maps, Google Assistant, and other popular apps like Spotify and Audible. While CarPlay and Android Auto will be removed from electric vehicles, they will remain available in gas-powered cars.

Final Thoughts

Through this Apple SWOT Analysis report, one can learn the exclusive details of Apple. This SWOT report is ideal for case studies. This report closely examines Apple’s strengths, weaknesses, opportunities, and threats.

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