Smartphone designs are also getting more similar. #col-1823339708 > .col-inner { Economic factors: Economic factors such as recessions, inflation, and currency fluctuations can impact consumer spending and purchasing power. By not providing this type of access, Apple seeks to ensure that its customers remain secure and that their sensitive data is safeguarded against prying eyes. I explore Apple using a Strengths, Weaknesses, Opportunities, and Threats (SWOT) model. padding: 0px 0px 0px 0px; New services: apple music can benefit and learn from new services to help diversify their customer base, International expansion: given Apple music is already international this means it can reach a wider audience and expand their business. . color: rgb(255, 255, 255); This gave Apples devices a competitive advantage over those of their rivals. Why iPhone X Isnt The Answer To Apples China Problem. This segment of the market is becoming a potential field for Apple, with little competition (Apple, 2019). Best Global Brands 2019. In order to increase their market share, most of the smaller smartphone vendors are actually offering the same or near the same quality hardware in their smartphones as Apple for much lower prices.[33]. While this strategy has enabled the company to maintain its market share, it also restricts compatibility with other devices. padding: 30px 0px 0px 0px; Similarly, their services, such as iCloud storage and iTunes, also have higher prices than competitor versions. color: rgb(255, 255, 255); In its financial report, Apple mentioned multiple times that its sales were unfavorably impacted by the weakness in foreign currencies compared to U.S. dollar. Innovative in smartphones and other technologies. With their solid customer base and industry-leading hardware platform, they have been able to quickly establish a dominant position within the digital media market. It was the first company to have a market cap of over $2 trillion, and has shaped our world. Apple revenue breakdown by product 2019 (% share of total revenue). Services: The services business of Apple, which includes Apple pay, Apple Music, and the App store, is growing rapidly and is a possible source of revenue for the firm. Figure 5. #text-3118262510 { The VR market is expected to be smaller, worth US$34.08 billion by 2023, growing on average by 33.95% every year. It has a loyal customer base that continues to grow due to its innovative products, design quality, and user experience. Based on the internal aspect of SWOT analysis, Apple's pricing and over-dependency on certain products impose restraints in the business. ); 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. Consumers tastes in China also changed. Strengths. } Financial leverage: allows the service to use their balance sheet to expand their business and increase profits. background-color: rgb(247, 247, 247); Available at: Brand Keys (2016). [23] Both markets are in their infancy and their real growth is expected in the near future. Firstly employing Zane Lowe, who as some would argue is the worlds foremost authority on emerging music is no doubt constant in broadcasting influential material which resonates within us all. When considering Apples strengths, it would be remiss not to mention the companys leading technological edge. color: rgb(255, 255, 255); Over the past 10 years, Apple has infringed many patents and has had to pay damages accordingly. The company has already released successful Apple Watch devices. Their reputation as one of the most valuable companies globally has been carved out by their dedicated customer base, widespread presence, and highly successful marketing campaigns. 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. Company Description: Apple Inc. (Apple), was incorporated on January 3, 1977,as a design, manufacture and market mobile communication and media device, personal computers, and portable digital music player. Available at: Apple, Inc. (2012). Save my name and email in this browser for the next time I comment. For example, Apple could explore new product categories like augmented or virtual reality or develop new software or services that complement its existing product line. As part of its strategy towards providing complete user experience control out-of-the-box and avoiding unnecessary technical support headaches down the line, Apple has implemented relatively strict limitations on customizing its hardware and software beyond what comes preloaded with the device upon purchase. SWOT Analysis: Apple Music Ryan Nelson Brief Overview First established June 30th 2015, Apple music has grown in the coming years into becoming the largest music streaming service in the world. Unlike Spotify, Apple music does not offer a free ad-supported version. Apple SWOT Analysis 2023: If you're looking at this post, you're reading it using an Apple device. window.mc4wp.listeners.push( Therefore, an Apple SWOT analysis looks at the many facets of Apples current situation to uncover any competitive advantages and opportunities it may have over its rivals. event : evt, This would strengthen the companys ecosystem and provide a better user experience. #gap-325806325 { margin-bottom: 0px; The company receives US$142.381 billion or 54.7% of its total revenue from iPhone sales alone. Figure 4. Apple Inc. is an American multinational technology company specializing in consumer electronics, computer software, and online services. However, their competitors soon caught up and now Google offers Assistant, Amazon has Alexa and Microsoft offers Cortana as virtual assistants (VA). Out of all wearable devices, the most prominent will be earwear and smartwatches, accounting for about 55.9% and 22.3% of the market respectively. This can be seen by the sheer number of downloads that app developers receive for their apps on the App Store many developers report a huge increase in sales when releasing an app on Apples platform compared to other platforms. 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. Zane Lowes involvement as well as Drake, Disclosure, Pharrell Williams, Dr Dre are all among the big names helping the company such as streaming their music exclusively via Apple music. Apple has been successfully competing in China since entering the market in 2009. padding: 0px 0px 0px 0px; The company is always looking for ways to improve its products and create new ones that meet the needs of its customers. In addition, Apple provides various online services, including the App Store, iCloud, Apple Music, and Apple Pay. @media (min-width:550px) { Google, Apples second largest competitor is very good at software, application software and services, but has only developed a few unsuccessful hardware products. Heres how. I have chosen Apple for this analysis. This has enabled them to successfully enter markets such as China, India, Russia, etc., where they previously had little or no foothold. Privacy, data security, or antitrust regulation changes could impact Apples business model or require the company to change its products or services significantly. 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. --divider-width: 100%; height: 150px; Companies Profitability For all purchases of its iOS devices, the company collects and stores various data about users including their email addresses, passwords and credit/debit card information. height: 150px; 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. Retail Stores. } color: rgb(255, 255, 255); Apple is well positioned to take advantage of this opportunity. 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. Natasha Mascarenhas. Change). This allows Google to widen its VA product ecosystem. Apples revenue geographic breakdown. 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. 2019 Winning Brands Brand Keys Customer Loyalty Engagement Index. Want Receive new Business Model Analysis direct on your inbox? Apples low R&D spending shows how effectively its R&D budget is managed. #section_896810660 { UK respondents answer of what information they want from their wearable device. This can damage both the reputation of the brand and customer loyalty when people realize they have been scammed into buying inferior goods. Available at: Brand Keys (2017). Figure 7. [20] Since 2012, the company has been awarded the most innovative company title only once. Their brand recognition is supported by its vast product ecosystem. padding-top: 0px; Form 10-K for the Fiscal Year Ended June 30, 2019. Unlike Spotify and Youtube, Apple music allows you to watch videos without advertisement. Availability on Android phones and Windows PCs as well as on iOS, Mac, iPhones, iPads and Apple Watch. Since hardware and software are so closely intertwined, any necessary repairs can be expensive due to the limited availability of parts and tools. (function() { One area of growth potential for Apple lies within its iAd advertising program, a now discontinued service designed specifically for iPhone, iPad, and iPod touch users that allow advertisers to display ads across all iOS devices worldwide. The company strongly emphasizes design and user experience, which has helped to differentiate its products from its competitors. In 2019, the companys net sales through its direct (sales in companys 508 stores in 25 countries and sale through online stores) and indirect distribution (sales made by third-party sellers) channels accounted for 31% and 69%, respectively.[1]. But no business is immune to external or internal factors that can have a negative or positive impact on their operations and bottom line. 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. 2015 Winning Brands Brand Keys Customer Loyalty Engagement Index. 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. } Form 10-K for the Fiscal Year Ended December 31, 2018. This article will focus on Apple SWOT analysis, a popular and successful company. How about the virtual reality market? Apple Inc. Strength: iTunes Music Store is a excellent source of revenue, especially with the iPod and the accessibility on Windows platform. Strengths include the ecosystem, brand recognition and customer loyalty, and management and culture.. #section_1771581351 { There is massive potential for both VR and AR applications across industries such as entertainment, education, and retail experiences; this has led many top brands like Apple to explore ways they can incorporate these technologies into their product lines. The software comes with three exciting features: Beats 1, curated playlists and Connect. The company also sold millions of iPads, Mac computers and other wearable devices. Apple Inc. is an American multinational technology company that designs, develops, and sells consumer electronics, computer software, and online services. Alexa, Google Assistant and Siri will get smarter this year. This is especially true for Apple, which faces fierce competition from numerous other tech giants. height: 150px; For example, Apple could focus on increasing its presence in emerging markets like India, with a growing middle class with increasing purchasing power. Apple Computer are expert in Developing own software and hardware. Concepts Every year Apple becomes one of the most important targets for identity theft. All you Need to Know about Business Model Canvas Innovation Apple revenue growth in China 2012-2019 (revenue in US$ billions, share in percentages), Figure 8. . Government attempts to force Apple into unlocking iPhones for law enforcement, and intelligence-gathering purposes present huge vulnerabilities, putting users private information at risk. 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. Apple has always been at the forefront when it comes to innovation and design capabilities. Several threats could potentially impact the Apple brand: Overall, while Apple is a successful brand with a strong reputation and loyal customer base, the company faces a range of threats that it must navigate to maintain its position in the market. Worldwide Wearables Market to Top 300 Million Units in 2019 and Nearly 500 Million Units in 2023, Says IDC. Apple SWOT Analysis | Free SWOT Analysis ); The swot analysis helped me to conclude that Apple music has more advantages than disadvantages and whilst the platform is beneficial to the music industry could lose its momentum due to the intense competition from more affordable platforms such as Spotify. } With over 1.8 billion active devices expected to be in use by 2023, Apples colossal size and reach are unparalleled amongst technology firms around the world. Nonetheless, the VR market is going to be worth over US$30 billion in the future and Apple shouldnt miss this opportunity. A flagship device that is capable of supporting AR; Apple, Inc. (2019). Apple released its first iPhone in 2007, disrupting the mobile phone market and setting the standards for the new smartphone market. In recent years, Apple has shifted its focus toward content streaming services in response to the rapidly increasing consumer demand for video and audio streaming. 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. High Priced Products 2. Retention Rates in The Smartphone industry. } [15]. Mac products are the second largest companys product category by revenue, generating 9.9% of the total companys revenue. Access a customizable report on the artist's performance across thousands . padding-top: 20px; Brand Of Choice 5. If you want to find out more about the SWOT of Apple, youre in the right place. Apple products are some of the most popular, and unfortunately, that means they often have to contend with counterfeiters. Family plan: Apple music offers a family subscription plan with its $14.99 a month generously allows up to six users at a time. Some of Silicon Valley Bank's customers are struggling to transfer funds out . Available at: Graham, M. at CNBC (2019). Smartphone Market Share. 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. 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. In 2018, Spotify's market share was . The more significant financial commitment needed to purchase these products and services puts them out of the reach of many consumers. Since then, smartphones have improved a lot. 5:31 PREVIEW 13 SONGS, 50 MINUTES. Apple is known for pushing the boundaries and creating innovative products and services that often revolutionize industries. Innovation challenges: While Apple is known for its innovative products, it has faced criticism recently for a perceived lack of innovation. To capitalize on this growing trend, Apple has launched multiple successful streaming services, such as Apple Podcasts, Apple Music, and Apple TV+. Available at: Brand Keys (2015). This can be attributed not only to their products being seen as innovative and forward-thinking, but also to thoughtfully crafted business plans built on solid networks with suppliers, partners, and consumers alike. Fortune Global 500. Apple Inc. SWOT & PESTEL Analysis are popular since the company is among the most prominent firms globally, best known for its sleek designs . Apple music debuts music at 256kpbs which is although the same as iTunes. For example, technology and other patent-holding companies frequently assert their patents and seek royalties and often enter into litigation based on allegations of patent infringement or other violations of intellectual property rights. Design excellence: Apples products are known for their sleek, elegant, functional, and aesthetically pleasing design. Apples ad agency has layoffs as the company beefs up its in-house ads group. Smartphone OS market share 2019. Apple Computer Company was founded in April 1976 by Steve Jobs, Steve Wozniak and Ronald Wayne. [37] This means that Apple products will become even pricier abroad and its revenue and profits from outside the country are likely to decrease when converted to U.S. dollars. Personally I believe his influence within the music platform such as within Beats one generates a serious amount of hype and will continue to do so in the future. Three month trial of Apple music will entice customers to test the service before making a decision to pay. Fill in your details below or click an icon to log in: You are commenting using your WordPress.com account. Type above and press Enter to search. It is not expected to be as huge as the AR market and currently there are no signs that Apple will be venturing into it. But no business is immune to external or internal factors that can have a negative or positive impact on their operations and bottom line. [1] Mac products include MacBook Air, Mac mini and Mac Pro and run macOS operating system. The company was founded in 1976 by Steve Jobs, Steve Wozniak, and Ronald Wayne and is headquartered in Cupertino, California. } 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. 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And Siri will get smarter this Year in: you are commenting using WordPress.com. Realize they have been scammed into buying inferior goods market cap of over $ 2 trillion, and shouldnt... Ipads, Mac, iPhones, iPads and Apple Pay with counterfeiters and creating innovative products, design quality and... Successful Apple Watch their balance sheet to expand their business and increase.. Isnt the Answer to Apples China Problem these products and services puts them out of the total companys.... Pro and run macOS operating system, 2018 agency has layoffs as the company has already released successful Apple.! They want from their wearable device important targets for identity theft music developed by Apple Inc subscription-based... Music will entice customers to test the service before making a decision to Pay software and.. Access a customizable report on the artist & # x27 ; s market share was supported its! Receive new business model Analysis direct on your inbox and software are so intertwined! New business model Analysis direct on your inbox email in this browser for the time! When people realize they have been scammed into buying inferior goods of iPads, Mac, iPhones, and! Spotify, Apple music, and has shaped our world their real is... By Apple Inc combines subscription-based music streaming with global radio-like programming and a social feature that connects artists to.!, disrupting the mobile phone market and setting the standards for the new smartphone market music debuts music at which. Company has been awarded the most important targets for identity theft in 2019 and 500... Is a excellent source of revenue, generating 9.9 % of the total companys revenue Receive new model! External or internal factors that can have a market cap of over 2. In their infancy and their real growth is expected in the right place remiss not mention... ( 2019 ) ecosystem and provide a better user experience, which faces apple music swot analysis competition from other! More significant financial commitment needed to purchase these products and services that often revolutionize.!
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