SWOT Analysis of Apple

Apple Inc. was founded on April 1, 1976 in Cupertino, California. Previously the company name was Apple Computer, Inc but on January 9, 2007 the word "Computer" was removed because of diversification into consumer electronics market. Apple employees more than 46000 people worldwide. Consumer electronics, computer software, and personal computers are the important segments of the corporation. The SWOT analysis of the company is given below:




  1. Apple incorporation has a strong international presence. It operates 301 retail outlets in 10 countries and has online shops where software and hardware products are sold.
  2. It is a highly diversified company in the personal computers, computer software, and consumer electronics.
  3. Apple has strong brands which include the iPod, the iPhone, the iPad, and Macintosh line of computers.
  4. It has established and recognized a unique reputation in the electronics consumer industry.
  5. Apple has the strong customer base mainly in the United States that is devoted to the company and its brand.
  6. According to Fortune Magazine, Apple named the most well-liked corporation in the U.S in 2008 as well as in the globe for three consecutive years i.e. 2008, 2009, and 2010.
  7. Apple has strong financial position. In 2007, Apple stock prices hit $97.80, an all-time elevated at that point. In May 2007, Apple’s share price crossed the $100 mark.
  8. Apple is the third-biggest mobile handset supplier in the globe due to the status of the iPhone.
  9. Apple’s website contains full guided visits of every brand that they offer.





  1. Apple is facing the strong criticism for its environmental, contractors’ labor and business practices. 
  2. The company brands are expensive as compared to the brands of competitors.
  3. Easy use of the electronics has led to an image problem for Apple products; some people consider the Macintosh as a toy.
  4. Iphone is considered costly for a mixture between a phone and a notebook; it still lacks a series of important features.
  5. Higher research and development cost and slightly higher channel cost than competitors such as Dell.
  6. It is accounted that the Apple iPod Nano might have a defective screen and batteries; which ruined its image.





  1. Advancement in technology will allow Apple to come up with new products and create new market segment.
  2. Improvement in technology will also help the company to introduce efficient-manufacturing systems which will decrease the overall cost of production.
  3. Apple is in the Rapid changing industry; innovation is the only way to remain in the industry and be competitive.   
  4. Customer Preference changes very frequently. They always look for new and updated products. Being a customer-oriented is the sign of success in this industry.
  5. Diversification in related and unrelated business such as: Security devices, soft wares, broadband and PC software are a few of the fastest growing segments.
  6. Backward and forward integration may result in lower cost and increase in quality and service.
  7. Sustaining low-cost leadership is also an important opportunity for the company.
  8. The company must sustain differentiation in iPods, iPhone etc in order to remain competitive.





  1. Advancement in technology obsoletes the manufacturing facilities as well as products of the company.
  2. Apple is facing strong competition to sustain its market share.
  3. Industry is witnessing strong Price War between PC producers.
  4. Apple has Strong competitors in the industry such as Dell, IBM, Intel, etc.
  5. Apple has also presence in the developing countries; currency changeability in those countries create problem for its business.
  6. The company is facing various problems in developing countries such as: political instability, government regulations, tariffs etc.

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