SWOT Analysis on APPLE

PREPARED AND PRESENTED BY:

JATIN DHALL AMIR SUBHANI LAKSHAY BATRA ANKIT KHANDELWAL

INTRODUCTION
Apple is an American multinational corporation that was founded on April 1,1976. It incorporated as APPLE COMPUTERS, Inc. on January 3,1977. The word computer was removed from the name on January 9,2007. Apple is worlds second largest informational technology company by revenue, after Samsung Electronics.

STRENGTHS

Customer Loyalty. Apple has a strong customer loyalty, which increases due to its closed ecosystem.
Leading Innovator. Companys core competency of producing innovative products made it the most innovative business in the world for 3rd time in 2012.

STRENGTHS (CONT)

Brand Reputation. Apple has a reputation of highly innovative, well designed and well functioning products and sound business performance. Retails Stores. Apples retail stores ensure high quality customer experience with knowledgeable staff and increased brand awareness.

WEAKNESS

High Price. Apples products cost much more than its competitive devices. Some critics argue that the price is not justified. Incompatibility with different OS. The iOS and OS X are quite different from other OS due to which user often choose to stay with their accustomed software and hardware(Microsoft OS and Intel Hardware).

OPPORTUNITY
Growth of Smartphone market.

Growth of Tablet and Smartphone market is a good opportunity to expand firms share in these markets.
Demand for CLOUD based services.

Apple could expand its range of iCloud services and software as the demand for cloud-based services is increasing.

THREATS
2013 Tax Increases.

Tax increases in USA in 2013, will negatively affect Apple as this may lead to price rise.
Price Pressure from Samsung.

Samsung has already asked Apple to pay higher price for the application processors and due to intense competition and no viable substitutes, Apple may be asked to pay even more.

THREATS (Cont)
Strong Dollar.

Apple earned more than half of its revenues from outside US. Dollar appreciation against other currencies reduces potential profits from those countries.
Android OS growth.

Android OS is the main competitor for iOS in mobile market. The domination of Android decreases iOS power to influence customers to join Apple.

QUESTIONS