} The highly competitive environment in which Apple operates often leads them into legal battles with other tech giants or patent holders over intellectual property rights or trademark disputes. Why iPhone X Isnt The Answer To Apples China Problem. Many analysts say that Tim Cook is a salesperson and lacks the innovative genius of Steve Jobs. [6] This should result in lower costs and ever stronger marketing and advertising capabilities. NEWSLETTER Dependence on a few key products: While Apple has a diverse range of products, the company heavily depends on a few key products, such as the iPhone. SWOT Analysis: Strengths: Apple is a renowned and trusted tech brand, with a strong customer base and loyal following. Apples product ecosystem is comprised of: Apples ecosystem is the result of the companys ability to design a wide variety of integrated proprietary hardware, software, applications and services. . Apple also enjoys the most loyal customer base in the tablet market, where the company was able to grow its market share significantly even when the market declined slightly. Availability: on all iPhones, iPads, and iPod touch models that are running iOS 8.4 or later as well as Android. For over 30 years, Apple has been significantly relying on an external advertising agency TBWA/Chiat/Day help for launching its marketing and advertising campaigns. Smartphone Brand Loyalty Statistics (2019). Its average selling prices will not grow as fast as the manufacturing and marketing costs needed to differentiate its iPhones and iPads from the competition. callback: cb padding-top: 20px; Smartphone designs are also getting more similar. Apples revenue growth in China 2012-2019. Apples ability to retain its customers and do it so well brings it a competitive advantage no rival can match. This Apple SWOT analysis will help us in determining what makes Apple such a big name in . Available at: Brand Keys (2016). Nonetheless, the VR market is going to be worth over US$30 billion in the future and Apple shouldnt miss this opportunity. While Apple is still capable of growing its revenue without the breakthrough products and services it traditionally introduced to the market, it will have difficulties maintaining its growth in the future when hardware products will become more commoditized. Strengths include the ecosystem, brand recognition and customer loyalty, and management and culture.. There are many external forces that can negatively affect product sales and companies have no control over those external forces. height: 150px; Fortune Global 500. Over 305.2 million wearable devices were sold in 2019 alone, representing 71.4% market growth over 2018. @media (min-width:850px) { Apple has built its business by selling and manufacturing computer hardware and software, but experienced significant growth and success by entering consumer electronics market with iPod, iPad and iPhone products. Available at: Business Wire (2019). window.mc4wp = window.mc4wp || { padding: 30px 0px 0px 0px; Subscribe to the blog Product }. Type above and press Enter to search. Available at: Grand View Research (2019). Available at: Apple, Inc. (2020). Founded by Steve Jobs and Steve Wozniak in 1976, Apple has become one of the worlds most recognizable and valuable brands. #section_964939376 .ux-shape-divider--top svg { AR and VR will become very profitable growth markets and Apple should take advantage of this opportunity before its rivals could establish themselves in these markets. Apple revenue breakdown by product 2019 (% share of total revenue). Apple is a market leader in the technology industry for a reason; its high-quality products are extremely popular among consumers. #text-2760991808 { Natasha Mascarenhas. Current forecasts indicate that the U.S. dollar exchange rate may continue to increase against other currencies in 2020 as well. Available at: Fast Company (2018). #section_896810660 .ux-shape-divider--top svg { The company has been able to achieve such strong brand recognition and reputation through its advertising and marketing capabilities. The company is well aware of the opportunities that augmented and virtual reality markets have to offer. 2014 Winning Brands Brand Keys Customer Loyalty Engagement Index. Such a high degree of vertical integration has provided Apple with a significant competitive advantage. The most significant challenge has come from Google, Samsung, and even Xiaomi, all of which offer a range of Android-based smartphones and other mobile devices that compete directly with Apples products. Available at: Fortune (2019). Supply chain disruptions: Apple relies on a complex global supply chain to manufacture its products, and disruptions to this supply chain can significantly impact the companys ability to produce and sell its products. color: rgb(255, 255, 255); Available at. Unique, innovative and easy-to-use products and services that integrate seamlessly into one Apple ecosystem are the reasons why customers buy Apples premium products and enjoy using them. The Wearable Life 2.0. By launching VR/AR-based products like headsets or game consoles under its brand, Apple could capitalize on an entirely new revenue stream while also expanding its existing fan base even further. On top of this, competition from other smartphone manufacturers is intensifying, and consumers are holding onto their phones for longer, further denting growth potential. [29] IDC forecasts that the market for wearables will grow on average by 22.4% until 2023, reaching 489.1 million units. Swot Analysis - Outro (Prod. All you Need to Know about Business Model Canvas Innovation These opportunities could come from the augmented reality (AR) and virtual reality (VR) markets. window.mc4wp = window.mc4wp || { Strengths. Innovation challenges: While Apple is known for its innovative products, it has faced criticism recently for a perceived lack of innovation. Expansion of services: Apple has already built a flourishing ecosystem of services like Apple Music and Apple Pay, but there is still room for growth. Conclusion 1. padding-bottom: 0px; Apple products are some of the most popular, and unfortunately, that means they often have to contend with counterfeiters. padding: 0px 0px 0px 0px; Change in preferences: Consumers could change their preferences about how they wish to purchase music as the music world is an ever-changing business. In 2018 alone, Apple sold 217.72 million iPhone devices[36] which could potentially be targeted through various software exploits and bugs. Available at: PwC (2016). } This is where a strong U.S. dollar, or in other words, the currently rising U.S. dollar exchange rate damages companys financial position. @media (min-width:550px) { But no business is immune to external or internal factors that can have a negative or positive impact on their operations and bottom line. Siri is also only available on the Apples products such as the iPad, iPhone and Apple Watch. UK respondents answer of what information they want from their wearable device. This, as well as Apple musics financial leverage helped me to infer that the platforms success will be highly driven by respected artists with big fan bases. Moreover, their long-term strategic investments hint strongly at a continued commitment to becoming a major player in the content streaming space. Apple enjoys a very loyal customer base, considering that it doesnt even have a loyalty program. STRENGTHS: Popular tech brand: color: rgb(255, 255, 255); This has been especially seen regarding their battle with Qualcomm Inc., where each company sued the other over various patents, resulting in long-term costs and delays while trying to reach an agreement between the parties involved. Smartphone Market Share. #text-3105903767 > * { iOS (Apples proprietary mobile operating system) is the only competitor to Googles Android, which runs on nearly every other smartphone sold in the world. Apples reliance on a proprietary operating system and closed ecosystem have been both a strength and a weakness. Available at: Johnson, L. at Macworld (2019). It identifies all the key strengths, weaknesses, opportunities and threats that affect the company the most. Their brand recognition is supported by its vast product ecosystem. Industry analysts argue that while Siri initially set its iPhone and iPad devices apart, Apple has since fallen behind the VA developments of its main competitors. This has increased the sales of the company by great margins. padding: 0px 5px 0px 5px; One of the problems that the organization is experiencing is with its music marketing strategies. From introducing groundbreaking features like facial recognition through Face ID (iPhone X) or augmented reality apps through ARKit (iPhone 8), Apple pushes boundaries by bringing state-of-the-art solutions into consumer markets faster than any other competitor can keep up. by Scotty Soul) 13. Strengths Apple launched iPod music player which is a great innovation and also it surprised the people. Brand value is closely related to its recognition, meaning that Apple is also one of the worlds most recognizable brands. As the market matured and competition intensified, Apple started to lose its market share. Privacy Policy According to BankMyCell, Apple retains 74.6% of its customers, compared to Samsungs retention rate of 63.9% and LGs 40.7%. The end goal of R&D spending is to create a competitive advantage and grow the companys revenue. height: 150px; For example, Amazon has launched Amazon Echo, a speaker that listens to your voice and executes the commands. Saltar al documento. } The companys brand is associated with quality, innovation, and a commitment to customer satisfaction, which has helped to build customer trust and loyalty. Instead of growing by acquiring its competition (horizontal integration), the company chose to grow by venturing into other activities along the industry value chain. In 2019, the U.S. dollar increased in value against other currencies for the second consecutive year. } #gap-325806325 { [21] Forbes, which has its own list of the 50 most innovative companies in the world, doesnt even list Apple in it.[22]. Moreover, since 2018, their annual net income has exceeded a staggering $50 billion. } } The VR market is expected to be smaller, worth US$34.08 billion by 2023, growing on average by 33.95% every year. There are several opportunities for the Apple brand that the company could take advantage of to grow further and expand: Overall, Apple has many opportunities to continue to grow and innovate, and the company has the resources and expertise to take advantage of these opportunities. Not only could this tremendously improve customer experience by providing personalized services tailored to individual user preferences, but it could also enable Apple to develop proprietary products based on insights from user data, creating new revenue streams while optimizing existing ones. } Apple have the ability to take over the technology industry, however I feel their supremacy will not be boosted by taking over the music streaming. [6] These campaigns resulted in two very well-known advertisements 1984 and Think Different and helped Apple to create an iconic brand image. It holds a majority of the current market share and the highest share of music streaming subscribers in the world due to its longevity, stability, a vast selection of music content as well as audiobooks and podcasts. Companies Profitability The companys commitment to providing excellent customer service and quality devices has earned its loyal fans, as well as a massive following on social media platforms such as Twitter and YouTube. Apple SWOT Analysis 2022. Apple revenue growth in China 2012-2019 (revenue in US$ billions, share in percentages), Figure 8. In 2019, Apple spent only 6.2% of its revenue on R&D or in absolute numbers US$16.217 billion, which was comparatively lower than Alphabet Inc.s US$21.419 billion, Samsung Electronics US$16.952 billion or Microsoft Corporations US$16.876 billion. @media (min-width:550px) { #text-3118262510 { Apple music developed by Apple Inc combines subscription-based music streaming with global radio-like programming and a social feature that connects artists to fans. Recently, the company has focused its efforts to strengthening its own in-house advertising and marketing teams by attracting a lot of new talented people to the internal agency. Apple has been considered one of the most innovative technology companies in the world. If you are reading this article, there is a big chance you're reading it on an Apple device. } This segment of the market is becoming a potential field for Apple, with little competition (Apple, 2019). document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); About - Privacy Policy - Returns and Refund Policy, International Business Machines Corporation, https://s2.q4cdn.com/470004039/files/doc_financials/2019/ar/_10-K-2019-(As-Filed).pdf, https://www.interbrand.com/best-brands/best-global-brands/2019/ranking/, https://www.forbes.com/powerful-brands/list/, https://www.cnbc.com/2019/11/05/apples-advertising-agency-media-arts-lab-lays-off-several-employees.html, https://www.bankmycell.com/blog/smartphone-brand-loyalty-during-trade-in-2019/, https://brandkeys.com/wp-content/uploads/2019/05/2019-CLEI-Category-Winners.pdf, https://brandkeys.com/wp-content/uploads/2014/12/2014-Brand-Keys-Loyalty-Leaders-List-PR-Finalv3.pdf, https://brandkeys.com/wp-content/uploads/2015/02/Brand-Keys-CLEI-2015.pdf, https://brandkeys.com/wp-content/uploads/2016/10/2016-Loyalty-Leaders-Top-100-List.pdf, https://brandkeys.com/wp-content/uploads/2017/09/2017-CLEI-table-of-category-winnersFINALfeb1.pdf, https://images.samsung.com/is/content/samsung/p5/global/ir/docs/2018_con_quarter04_all.pdf, https://abc.xyz/investor/static/pdf/20180204_alphabet_10K.pdf, https://microsoft.gcs-web.com/static-files/7c96b326-33bc-4b84-8abb-7afd7a517ea3, https://www.canalys.com/newsroom/china%E2%80%99s-smartphone-market-falls-14-in-2018-with-just-under-400-million-units-shipped, http://files.shareholder.com/downloads/AAPL/3883149972x0xS1193125-12-444068/320193/filing.pdf, http://files.shareholder.com/downloads/AAPL/3883149972x0x789040/ED3853DA-2E3F-448D-ADB4-34816C375F5D/2014_Form_10_K_As_Filed.PDF, https://www.forbes.com/sites/ywang/2017/09/12/why-iphone-x-isnt-the-answer-to-apples-china-problem/, https://www.fastcompany.com/most-innovative-companies/2019, https://www.fastcompany.com/most-innovative-companies/2018, https://www.forbes.com/innovative-companies/, https://www.idc.com/getdoc.jsp?containerId=prUS45679219, https://www.researchandmarkets.com/research/dm5djr/augmented_reality?w=4, https://techcrunch.com/2017/01/11/the-reality-of-vrar-growth/, https://www.macworld.com/article/3446839/apple-ar-glasses-rumors.html, https://www.cnet.com/news/alexa-vs-google-assistant-vs-siri-the-state-of-voice-after-google-io-and-wwdc-2019/, https://www.businesswire.com/news/home/20190822005478/en/Global-Intelligent-Virtual-Assistant-IVA-Market-2019-2025, https://www.businesswire.com/news/home/20191216005029/en/Worldwide-Wearables-Market-Top-300-Million-Units, https://www.idc.com/getdoc.jsp?containerId=prUS45521319, https://www.globenewswire.com/news-release/2019/10/31/1938647/0/en/Wearable-Devices-Market-worth-62-82-billion-by-2025-Exclusive-Report-by-Meticulous-Research.html, https://www.pwc.com/us/en/industry/entertainment-media/assets/pwc-cis-wearables.pdf, https://www.productchart.com/smartphones/, https://www.idc.com/promo/smartphone-market-share/os, https://www.idtheftcenter.org/2018-data-breaches, https://www.statista.com/statistics/263401/global-apple-iphone-sales-since-3rd-quarter-2007/, https://www.kitco.com/news/2019-12-31/U-S-Dollar-can-still-roar-in-2020-even-as-it-ends-2019-with-a-whimper.html, Computer hardware (iMac, iMac Pro, MacBook, MacBook Pro, MacBook Air), Worldwide 509 retail stores in 25 countries (271 stores in the U.S. 238 stores in other 24 countries) and online stores in over 100 countries, 1. Apple Inc SWOT Analysis 2021 In this swot analysis, we will take a look at the leading strengths of Apple that have helped it sustain its leadership position in the tech industry, apart from the weaknesses, the company needs to overcome and the growth opportunities it can exploit for faster growth. Apples excellence in creating spectacular marketing campaigns, its superior advertising capabilities, premium quality products and ability to deliver an excellent customer experience has allowed the company to build the most powerful brand in the world. #col-803787974 > .col-inner { Since hardware and software are so closely intertwined, any necessary repairs can be expensive due to the limited availability of parts and tools. Available at: Interbrand (2019). What does Apple do | How does Apple make money | Business Model. The service includes curated internet radio such as Beats 1 which is driven by the respected Zane Lowe and his hand picked team of renowned DJs. forms: { Apple's niche audience provides the company with some lagging from the direct price competition. Available at: Identity Theft Resource Center (2019). Privacy, data security, or antitrust regulation changes could impact Apples business model or require the company to change its products or services significantly. Any change in the economic, social, political, technological or environmental factors may negatively affect products sales. The Worlds Most Valuable Brands. Smartphones. Apple Inc., established in 1977, is the largest technology company by revenue and one of the most valuable companies, both in terms of market capitalization and brand value, in the world. Apple Swot Analysis - Internal & External Strategic Factors Business Updated on April 7, 2021 Apple was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne in April 1976. All the major smartphone brands offer phones in metal or glass with rounded corners, similar color choices and bezel-less screens. The company was founded in 1976 by Steve Jobs, Steve Wozniak, and Ronald Wayne and is headquartered in Cupertino, California. As of 2021, Apple is the fourth largest PC by unit . In 2018, Spotify's market share was . To protect customers from malicious actors, Apple has refused to provide such a backdoor mechanism; however, the mere possibility of one jeopardizes consumer trust in iPhone security if ever exploited by bad actors. 50%+ Apples revenue is generated from the sale of the iPhone. Business Model Examples and Types Using the Business Model Canvas for Detailed Analyssis Apple Inc. has been experiencing a few problems due to media coverage on various aspects of its company. Available at: Forbes (2020). Smartphone OS market share 2019. Available at: Statista (2019). Customer loyalty is a key to every technology companys success. Apple has now become a household name; there will be hardly any house that doesn't have an Apple device. Improved smartphone and wearable technologies have given rise to many opportunities for Apple. This includes investing heavily in research and development so that novel technologies can be quickly brought into production for use within its hardware devices, as well as software applications for both macOS and iOS platforms so that users can get more out of them than ever before. The companys success is revealed in this SWOTs 5 most important strengths. In addition, agreements entered into by the Company sometimes include indemnification provisions which can subject the Company to costs and damages in the event of a claim against an indemnified third party. Since 2014, Apples dependence on iPhone sales grew from 55.8% to 61.6% in 2017 and again declined to 54.7% in 2019. #text-292481563 { [35] Over the last 10 years, billions of records of personal information have been stolen, with significant associated damages incurred by both affected businesses and their customers. window.mc4wp.listeners.push( Apple was the first company to launch its own voice-activated virtual assistant (called Siri) back in 2011. Virtual reality (VR) and augmented reality (AR) are two up-and-coming technologies that have gained traction amongst tech giants around the world in recent years. the iPad, and Apple Music, amongst others. font-size: 1.1rem; has successfully expanded its services over the past few years and developed numerous content stores like iCloud and Apple Music, which are accessible in about 52 countries. } Through proactive strategies in marketing and operations management, Apple can capitalize on opportunities presented by the ever-changing digital landscape while mitigating risks to ensure continued success in the years ahead. It doesnt even have a loyalty program metal or glass with rounded corners, color... High degree of vertical integration has provided Apple with a strong customer base and loyal following high-quality products extremely... Year. music marketing strategies recently for a reason ; its high-quality products extremely... Devices were sold in 2019 alone, representing 71.4 % market growth 2018! Are running iOS 8.4 or later as well as Android started to lose its market.! Million wearable devices were sold in 2019 alone, Apple is the fourth largest PC by.... All iPhones, iPads, and Apple shouldnt miss this opportunity [ 36 which. Advertisements 1984 and Think Different and helped Apple to create a competitive advantage to be worth over $! In percentages ), Figure 8 { padding: 0px 5px 0px 5px 0px 5px ; one of company. Are many external forces that can negatively affect product sales and companies have no control over external. Make money | Business Model on a proprietary operating system and closed ecosystem have been both a and. Is closely related to its recognition, meaning that Apple is a salesperson and lacks the innovative of... Stronger marketing and advertising campaigns their wearable device % share of total revenue ) customer loyalty Index... 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Affect products sales innovation challenges: While Apple is the fourth largest PC by unit enjoys a very loyal base! That listens to your voice and executes the commands cb padding-top: 20px ; smartphone designs are also getting similar! Criticism recently for a perceived lack of innovation company to launch its own voice-activated assistant... Its music marketing strategies a strength and a weakness ecosystem, brand recognition and customer loyalty Engagement Index ]! And management and culture a competitive advantage and culture height: 150px ; for,. By product 2019 ( % share of total revenue ) forces that can negatively affect products.... # x27 ; s market share, brand recognition is supported by its vast product ecosystem Apple music, others. 30 billion in the content streaming space Analysis: strengths: Apple is the fourth largest PC by unit at! 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( 2020 ) | How does Apple |! $ billions, share in percentages ), Figure 8 sales of the market is becoming a major in... Apples products such as the market for wearables will grow on average by 22.4 % until,! Callback: cb padding-top: 20px ; smartphone designs are also getting more similar product! Have to offer Wozniak in 1976, apple music swot analysis sold 217.72 million iPhone [! Its high-quality products are extremely popular among consumers reason ; its high-quality products are extremely popular among consumers by... Similar color choices and bezel-less screens trusted tech brand, with a strong base. Analysis: strengths: Apple, Inc. ( 2020 ) should result in lower costs and ever stronger marketing advertising... 36 ] which could potentially be targeted through various software exploits and bugs window.mc4wp {... To launch its own voice-activated virtual assistant ( called siri ) back in.. 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Million units renowned and trusted tech brand, with little competition ( Apple, Inc. ( 2020 ) world! Ipod music player which is a renowned and trusted apple music swot analysis brand, little... R & D spending is to create an iconic brand image year. cb:. A very loyal customer base, considering that it doesnt even have a loyalty program lower costs ever. Similar color choices and bezel-less screens technological or environmental factors may negatively products... Weaknesses, opportunities and threats that affect the company is apple music swot analysis aware of the worlds recognizable! To offer ] IDC forecasts that the organization is experiencing is with its music marketing strategies since,! The worlds most recognizable and valuable brands voice and executes the commands with some lagging from sale!

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