APPLE ANALYSIS REPORT

Contents

Overview of the company..........................................................................................................2

SWOT analysis of Apple...........................................................................................................3

Strengths.................................................................................................................................3

Weaknesses.............................................................................................................................3

Opportunities..........................................................................................................................4

Threats....................................................................................................................................5

Recommendation for creating a competitive advantage............................................................5

References..................................................................................................................................6

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Overview of the company

Apple Inc., which was founded in 1977 is considered as the largest technological business by

sales and as a valuable business globally, both in terms of market valuation and recognition.

The business changed the smartphone industry and built one of humankind's most

recognisable brands.

Apple has ventured into various segments which allowed it to gain substantial expansion and

profitability. The business creates, produces, and sells smartphones, tablets, laptops,

smartwatches, and devices. The company's flagship item is its iPhone, that works on Apple's

IOS and accounts for 54.7% of all sales (Aljafari, 2016).

Apple provides its consumers with a broad array of services in conjunction to its consumer

devices and hardware goods, such as:

 Digital Stores. Online content shops like podcasts, songs, novels, and videos.

 Services with subscription models: Apple TV+ and Apple Music.

 Various other solutions (licencing, Apple Card, iCloud, Apple Pay and Apple News+)

With a growth rate of 16% in 2019, services contributed 17.8% of the organisation’s total

sales and were Apple's 2nd quickest-growing segment (Sathappan, 2017).

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SWOT analysis of Apple

Strengths

Significant brand recognition

One of every company's most valuable resources is a great brand. After its inception, Apple

has generated a powerful image that gives it a considerable competitive advantage over its

rivals. Apple's financial results demonstrates consumer acclaim for and brand devotion. 

Array of products with a variety

Apple is a multi-product enterprise. Although the iPhone is the company's primary product,

Apple also provides a number of other goods and services that bring in a sizable amount of

money. It also covers products like the iPad, Mac, iPod, Apple TV, and services like iCloud

and Apple Music.

Weaknesses

Excessive dependence on iPhone sales to increase revenue 

Even though Apple is a broad business, the iPhone still makes up a disproportionately large

portion of its profits and revenues. Yet, the iPhone generates about 60% of all Apple sales

(Li, 2021). Apple is susceptible to any downturn in iPhone consumption because of its

reliance on the device.

High costs for goods that can turn off budget-conscious customers

Despite being incredibly well-liked, Apple's products also rank as the most expensive ones

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available. Due to the large number of price-sensitive global consumers, this might restrict

Apple's ability to grow.

Low representation in significant, fast-growing markets like India

Despite being a worldwide corporation, Apple has a comparatively small footprint in a few of

the markets with the quickest growth rates, like India (Khan et al., 2015). Apple must figure

out a method to increase its market share in these fast-growing industries if it wants to keep

growing quickly.

Opportunities

More growth in emerging economies such as India and Brazil

Apple has a lot of room to expand in developing nations like Brazil and India. These nations

are host to sizable and quickly expanding populations that are progressively embracing cell

phones and other cutting-edge technology.

Launch of new items like an electrical vehicle or augmented reality 

An electric car, glasses for augmented reality, and a new Apple TV are a few of these

products. Sales and profits for Apple might significantly rise if it can successfully introduce

these goods. Sales and profits for Apple might significantly rise if it can successfully

introduce these goods.

Expand the range of services offered

Apple will be able to counteract any decrease in the sales of its hardware devices if it can

expand the scope of its services offering. Apple might add new services to those it already

offers, like iCloud and Apple Music.

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Threats

Fierce rivalry with companies like Google, Huawei, and Samsung

Despite becoming the most valuable business in the world, Apple is up against strong

competition from its competitors (Aljafari, 2016). Large, well-funded businesses like

Samsung, Huawei, and Google are all able to produce goods that are on par with Apple's in

respect of both features and quality.

China's rise in cost of labour

Most of Apple’s goods are assembled in China. Nevertheless, since China has developed,

labour prices there have been growing recently, which could hurt Apple's earnings. To

counteract this, Apple has already been moving a portion of its manufacturing to nations like

Vietnam and India.

Recommendation for creating a competitive advantage

In order to prevent the possibility towards becoming unduly reliant on China for the

production of its goods, Apple may consider alternative low-cost emerging economies for

manufacturing and portion of its distribution networks. Furthermore, Apple Inc. has specific

advantages that may be used to successfully address its vulnerabilities. Apple can leverage its

powerful brand identification and idea generation to design and release new innovative

goods. Competitive pressure and copying, which affect players in the global market, are other

threats to Apple. To lessen the likelihood of duplication, Apple is recommended to keep up

its vigorous and swift innovation and technology development of its products. It should also

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consider forming partnerships with other carriers to increase the overall market presence of

its products.

References

Aljafari, A. (2016). Apple Inc. industry analysis business policy and strategy. International

Journal of Scientific & Engineering Research, 7(3), 406-441.

Khan, U. A., Alam, M. N., & Alam, S. (2015). A critical analysis of internal and external

environment of Apple Inc. International Journal of Economics, Commerce and

Management, 3(6), 955-961.

Li, Y. (2021). Apple Inc. Analysis and Forecast Evaluation. Proceedings of Business and

Economic Studies, 4(4), 71-78.

Omer, S. K. (2019). SWOT ANALYSIS IMPLEMENTATION’S SIGNIFICANCE ON

STRATEGY PLANNING. Journal of process management and new technologies, 7(1).

Sathappan, S. (2017). Strategic Management Analysis–Apple Watch.