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Home » SWOT articles » SWOT analysis of Apple Inc – Apple SWOT analysis

SWOT analysis of Apple Inc – Apple SWOT analysis

June 4, 2020 By Hitesh Bhasin Tagged With: SWOT articles

The top brand of the world, Apple has many more strengths then weaknesses. And at the same time, the threats against Apple are rising because it is obviously in the target radar of a lot of companies. The Apple SWOT analysis presents the analysis of this innovative company and how it is the leading the market in technology.

Table of Contents

  • Let us discuss the SWOT analysis of Apple as a company
  • Strengths in the SWOT analysis of Apple
  • Weaknesses in the SWOT analysis of Apple
  • Opportunities in the SWOT analysis of Apple
  • Threats in the SWOT analysis of Apple
    • Hope this article helps you to create your own company swot analysis
    • Related posts:

Let us discuss the SWOT analysis of Apple as a company

SWOT analysis of Apple Inc available company mission - 1

Apple SWOT analysis products accessed available leading computing business product

Strengths in the SWOT analysis of Apple

  1. Innovative products – One of the key strengths of Apple over the years has been its innovative product line up. Apple has presented hit products after hit products and that’s been the major strength of Apple. Initially it came with the MacBook, then the iPod, the Iphone, the Ipad, the Iwatch. In short, Apple has covered almost everything that an individual “desires”.
  2. Leadership position – As per Wikipedia, Apple is the leading technology company in the world with regards to revenue generated. It is also the second largest smart phone manufacturer. It become the first US company to cross 700 billion dollars and in 2014 was the largest publicly traded company in the world. If that does not define leadership, then nothing else can. Apple is far ahead in the leadership game.
  3. Brand equity – Naturally, being in the leadership position requires that your brand equity be high. The brand Apple is the number 1 valued brand amongst all the companies in the world as of 2016. The brand value in 2015 was estimated to be 118.9 Billion dollars!!
  4. Design & Technology – The best part of Apple, and the reason for its fantastic brand equity is its design as well as the technology it uses. Apple has always been suave and elegant in its product design. And at the same time, beneath this exquisite design is a machine powered to give ultimate performance. All this runs on the MacOS which is another software known for its efficiency.
  5. Distribution – Apple swot analysis tells us that Apple has 470 of its own stores across 17 countries. Besides these stores, it sells through trade partners, online channels as well as through other premium retail stores. Entering an Apple owned retail store is a fantastic experience. Additionally, Apple also launched the Apple genius bar to directly solve customer issues within the retail store itself. Thus, the concentration of Apple on its sales and service distribution is legendary.
  6. Steve jobs – One of the key factors and the leader of Apple is also a loved person in the technology Industry. He is an inspiration to all marketers in the way that he led his own people and the way he carried his life and the brand Apple along with him. Since 2011, his departure from this world, Apple has been led by Tim cook who is also showing his genius in growing Apple as a company.
  7. Margins – One of the core advantages of Apple as a company is the margins that it commands over its products. Being a technological leader with a top brand equity, Apple swot analysis results tells us that apple keeps a hefty margin for itself to invest in R&D and brand building. Furthermore, its pricing strategy is such that the price does not break in the market and you will always find Apple selling at the same price in various retail stores.
  8. Consumer focus – Apple always designs its products with a focus on consumers while keeping their mind in the future. They always try to imagine the things which even the consumer has not imagined yet. As per Steve jobs “if you ask the consumer what he wants, by the time you give him the same thing, he will want something else”. This ideology is the reason of success for Apple.
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Weaknesses in the SWOT analysis of Apple

With a company which is a market leader and innovative, we can expect very few weaknesses. Still, here are 3 weaknesses which Apple might be facing.

  1. Matching Customer expectations – Being a leading company since 1980’s Apple has a major market share and the consumer expectation is going through the roof. People expect great things from apple year after year and maintaining these expectation levels is not easy for anyone.
  2. Incompatibility – A key issue in Apple as a company is that many of its products are incompatible with third-party software / accessories. So overall, when you buy a product of Apple, you enter the Apple universe and you have to continue with Apple only. That makes a huge impact on consumer decision making.
  3. Dependency on few products – Apple has only 7-8 products in its portfolio in comparison to the various products that its closest competitors Microsoft and Google have. Hence the dependency of Apple on each of its products is very high. If one product fails, then that is a 10% loss to Apple. Hence, there is a common demand from Apple to increase its product portfolio.

Opportunities in the SWOT analysis of Apple

  1. Apple cars – Naturally, with Facebook expanding with Instagram, Occulus rift, Whatsapp and others and Google expanding in 10 different ways, Apple wanted to find out some new products which Apple could launch. Apple is now fixated on Apple Car which is supposed to be launched in 2020. Like any other product of Apple, we can expect great things from the Apple car as well.
  2. Technological advancement – In the technology industry, technological advancement is always an opportunity. And the one brand we can expect to leverage technology to its best is Apple. We can expect even more advanced MacBook’s, Iphones, Ipads and Iwatches in the coming years.
  3. The growing market – Apple is a growing company in a growing market. Equally important to the company is the rising GDP of developing countries, thereby increasing consumption of such premium brands like Apple. Any company which is growing needs a larger market base and the market base is slowly being built via territory expansion for Apple.
  4. Iwatch and Apple TV – Two products which can increase the presence even further are the Iwatch and Apple TV, both of which are aimed at the future, for when the digital presence increases. Apple Iwatch already has a 50% market share of Smart watches in US.
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Threats in the SWOT analysis of Apple

Apple as a company does not have any threat. But as products, each of the products is facing strong threats from the competition. Being the number 1 company in the world is not easy and you are going to face competition especially from other brands.

SWOT analysis of Apple - 2

  1. Market penetration in Smartphones – One of the key threats to Apple is the market penetration by other brands in the Smartphone market. Android is eating market share like anything and currently has 47.5% of the market share whereas Iphone is at 42% market share. Android is being used by Samsung, HTC, Lenovo and practically everyone who wants to enter the smart phone market. Naturally Android being of Google (2nd most valued brand), Apple has to be ready for Smartphone competition.
  2. Laptop competition – MacBook is obviously the best there is. But so is Dell, and so is Sony and so is Lenovo. The competition is ever-increasing in the laptop segments. Dell has introduced some beautiful models over the years including the Alienware model. So, although Apple as a brand is loved by everyone, MacBook is facing stiff competition from other brands as well.

Smartphones replacing Ipod – In 2014, Ipod suffered a major decline of 52% in its sale over 2013. Overall, Smartphones have replaced music players altogether because of the various ways that you can utilise music and carry it around. Hence the functionality of Ipod is no more unique. (Other “Only music players” are also finding it hard to exist in the market).

Thank you for reading our article about apple swot analysis

Hope this article helps you to create your own company swot analysis

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During the initial years, Huawei focused its manufacturing on phone switches, and over the years it has expanded its business to include various operations like developing telecommunication networks, providing equipment to enterprises, and providing consulting and operational services. The company has about 194,000 employees as of the end of 2019. Huawei has provided its services and products to approximately 170 countries across the world. The company aims to reach digital to every person, organization and looking forward to connecting the world fully. The brand serves about three billion people worldwide. Huawei’s mission is to expand the technology benefits to all places. To achieve this, the company has created a digital inclusion strategy, and it focuses on three main areas: - Technology - Applications - Skills The SWOT analysis of Huawei differentiates all the main strengths, weaknesses, opportunities, and threats that helps the company to identify its internal and external environment. Readout this article, to get an understanding of where Huawei stands. The SWOT analysis of Huawei indicates the strengths of the brand in which the brand is good and what distinguishes it from its competitors, its weakness that would halt the brand to do well, and its focus point. It lists its opportunities that the brand can use to increase its market share and brand value. It also throws light on the threat that has the potential to harm the brand. To make sure that Huawei meets the long-term competitive advantage, it must address the various concerns highlighted in the SWOT analysis of Huawei. Let us discuss on the SWOT analysis of Huawei. Strengths in the SWOT Analysis of Huawei 1) Large Product Portfolio – One of the main strengths of the brand is its extensive product portfolio. Huawei has its fastest growth in producing wide ranges of smartphones. Huawei is one of the top three smartphone brands and the top two in the international market of smartphones. Every year, the number of smartphone deliveries keeps increasing. As the brand has a higher smartphone sale every year, it is shown in its higher profits. Apart from smartphones, the company produces various other products like mobile and fixed broadband networks, tablet computers, multimedia technology, dongles, Harmony OS, and Smart TV. All its products and services targeted to enterprises and individual users as well. Huawei’s entire business is separated into three segments. They are enterprise business, consumer, and carrier. 2) Innovation in Technology – Yet another strength of the brand is its innovation in its technology. Ever since its formation, the company has maintained a significant focus on research and innovation. Every year, the brand invests a considerable amount of money in research and development. Each year the amount keeps increasing, and hence many innovative technologies are coming up from this brand. Due to its strong focus on research and development, Huawei has been a leading player in the smartphone industry and the 5G technology as well. The company also invests a massive amount in Artificial Intelligence technology and sees a faster growth. As there is always some kind of development in technology still, it considers a more rapid growth among international players. 3) Leading Position in the Smartphone Market – Being a leading player in the smartphone industry, Huawei produces and sells many smartphones to the market. This has been its leading revenue source. The smartphone deliveries of the brand have been increasing, and so, the revenue is also on the rise. Huawei is the second leading player in the smartphone industry next to Apple. During the year 2018, the company’s smartphone deliveries turn out to be about 223 million units. Even though the smartphones of Huawei come with innovative technology and good cameras, its prices are feasible, and due to this, its market share has increased at a high level. 4) International Presence – The brand has an excellent global reach, and this is also a primary strength of the brand. Over the years, the company has expanded globally, leading to a good revenue, market share, and a strong customer base. Being a Chinese brand, Huawei has its business operations in about 170 countries, and it works with many large networks of distributors, suppliers, and business partners from various parts of the world. 5) Competitive Pricing – Yet another strength of the brand is its competitive pricing. This is one main reason for the brand to accomplish popularity and growth faster. The brand has a proper strategy that focuses on lower prices and quality. This has resulted in having a significant market share at the international smartphone market, thereby increasing its revenue. The company has many products that are priced feasibly and targets all economic classes of people. 6) Customer Value – Huawei have partners with various associations that provides network products and solutions that are simple, intelligent, innovative, trustworthy and secure. The brand also opens for ICT capabilities for enterprise customers and provide them with various solutions that are secure, innovative, and trustworthy. The brand makes use of multiple innovations in its smart devices and improves people’s digital experience. 7) Secure and Stable Network Operations – The top priorities of the brand were always focused on privacy protection and cybersecurity. Huawei always believes in the power of transparency and honesty. The company is always focused on improving their software engineering capabilities and business continuity while increasing the networks. Huawei has worked for about 30 years with carrier customers to create over 1,500 networks in nearly 170 countries. In an organized way, the company has tried to connect about three billion people across the world. Even in this vast network, the brand strives to maintain a right track of security. Weaknesses in the SWOT Analysis of Huawei 1) Many Controversies – The brand has many controversies ever since its formation, which seems to be a massive weakness for the brand. It also has a tainted image in the global market. Apart from controversies related to espionage, there are many more who tainted Huawei’s image in many Western nations and mostly in the US. This can be blamed due to the rivalry between the US and China and the close connection between the Chinese government and Huawei. Even now, Huawei’s image is considered a great weakness for the brand. Also, the brand has been accused of using its resources for espionage purpose. As it has lost the AT&T support in the US, it has ended up losing support from many other US partners also. 2) Weak Market in the US – The leading smartphone market in the US and Huawei has not positioned well in the US market. This is also a great weakness for the brand as the US being the leading smartphone market, and Huawei is not able to place itself there. People in the US mostly refrain from purchasing the Huawei handsets. While the company has faced investigations on many issues in the US, Canada, and Britain, the brand does not seem to be a big hit in these regions. As days pass, Huawei’s position in the US market keeps growing weaker in the United States. Also, the US government is keen on not allowing the brand to flourish in the US market. 3) Lack of Capital – The company always sees a cash shortage. As compared to other top brands in the world, Huawei’s capital is very less. The company has very little capital for its operations. Hence, they need to be extremely careful while planning their business operations. Also, due to its shortage of money, it has little money to go in for branding or marketing. To make the brand reachable, it should invest a considerable amount in marketing or branding. This becomes a great weakness for the brand. 4) Weak Brand – As Huawei has less capital, it does not have a sharp brand image. There is a lack of marketing for the brand, and due to this, it is a weak brand. Even though the brand has a sharp image in a few countries, it has less popularity in most of the top markets. Being a weak brand and as it affects the brand image, this is indeed a great weakness for the brand. Opportunities in the SWOT Analysis of Huawei 1) AI and 5G Technologies – Huawei has seen a lot of opportunities using its research and development. Being a leading player in the smartphone industry, the company has also seen a significant advantage in 5G technology. The brand should focus more on the AI and 5G technologies, and it has already had success in venturing into the 5G technology. Both the technologies AI and 5G are profitable are for any smartphone industry. So, the company sees a lot of opportunities in entering more into these technologies. 2) Marketing – As Huawei is strong as a technology firm, its marketing strategy is weaker as compared to its competitor. Instead of making use of a marketing strategy and consistent branding, the brand has depended mostly on its pricing strategy and product quality to increase its customer base and market share. Being a leading brand in technology, it must have a strong marketing strategy in place and is essential for its core business strategy. It should focus more on a marketing strategy to get a higher brand image. 3) Retail Chain – At the international level, the brand makes use of online channels for its sales. Currently, Huawei has created a good position, and it sees more opportunities to expand its presence in the global market by taking efforts to develop its brand retail chain. Along with marketing, the company should be able to drive more sales and get customer loyalty. Threats in the SWOT Analysis of Huawei 1) Competitors – The smartphone industry sees a lot of competition over the years, and it keeps growing at a fast pace. As the company has been recognized as a top brand in the smartphone industry, it does face many competitions from many foreign brands and Chinese brands as well. Its competitors include Apple, Xiaomi, Samsung, etc. Hence, seeing many players in the smartphone industry is a significant threat to the company. 2) Regulatory Pressures – Many regulatory and political pressures are increasingly projecting a severe threat to global players in technology. The international business of Huawei is being threatened by the political pressures and the trade war that takes place between China and the US. It is not only with the US that it faces threats but also with other leading markets like Canada, Britain, and Japan. Huawei faces intense political pressure, that is a significant threat to its development. This would drastically limit the Huawei’s international business. 3) Trade Pressures – There has always been trading tensions between China and the US, and this has been big trouble for the brand. This is due to the fact about the relationship that the technology company has with the Chinese government. This is also a threat to the business. Conclusion Huawei has flourished in the international market in less time. In recent years, the company has developed its smartphone industry. With the increase of smartphone, the brand has seen significant growth in the market. The SWOT analysis of Huawei mentioned in this article has highlighted the main strengths of the brand that comes up from its extensive product portfolio, innovation in technology, leading position in the smartphone industry, having an international presence, maintaining feasible pricing, have an excellent value-form customer, and providing secure and stable network operations. Its weakness is seen from its many controversies, a weak presence in the US, less capital, and a weak brand. It sees a significant opportunity on entering AI and 5G technologies, focusing more on marketing, and having a strong retail chain. Its threat is from its competitors in the smartphone industry, various regulatory pressures, and trade pressures among the US.SWOT Analysis of Huawei SWOT Analysis of ASUS - 3SWOT Analysis of ASUS SWOT Analysis for SonySWOT Analysis of Sony SWOT analysis of PanteneSWOT analysis of Pantene – Pantene SWOT analysis
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About Hitesh Bhasin

I love writing about the latest in marketing & advertising. I am a serial entrepreneur & I created Marketing91 because i wanted my readers to stay ahead in this hectic business world. You can follow me on Facebook. Let's stay in touch :)

Comments

  1. Ovidijus says

    Hi Hitesh, how can I contact you privately?

    Reply
  2. Andy yearwood says

    Great information.

    Reply

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