SWOT Analysis: Apple iPhone

Parent Company Category Sector Tagline USP Apple Mobile Phone Handsets Telecommunication The worlds thinnest smart phone IOS, AppStore

Company Profile:
Apple Inc. (Apple), incorporated on January 3, 1977, along with its subsidiaries, is engaged in designing, manufacturing and marketing mobile communication and media devices, personal computers, and portable digital music players. It also sells a range of related software, services, peripherals, networking solutions, and third-party digital content and applications. The Companys products and services include iPhone, iPad, Mac, iPod, Apple TV, a portfolio of consumer and professional software applications, the iOS and Mac OS X operating systems, iCloud, and a range of accessory, service and support offerings. It also sells and delivers digital content and applications through the iTunes Store, App Store, iBookstore, and Mac App Store. During the year ended November 24, 2011, the Company, as part of a consortium, acquired Nortel Networks Corporations patent portfolio. In February 2012, the Company acquired appsearch engine Chomp. Started by Steve Jobs, Steve Wozniak, and Ronald Wayne, Apple has expanded from computers to consumer electronics over the last 30 years, officially changing their name from Apple Computer, Inc. to Apple, Inc. in January 2007.

Products:
1. App Store 2. Aperture 3. Apple TV 4. DigitalColor Meter 5. Final Cut Studio 6. Logic Studio 7. MacBook Air 8. Magic Mouse 9. MobileMe 10. OS X 11. OS X Lion 12. Ping 13. Safari 14. Siri 15. iAd 16. iCloud 17. iLife 18. iOS 19. iPad 20. iPad2 21. iPad 2012 22. iPhone 23. iPhone 3G 24. iPhone 3GS 25. iPhone 4 26. iPhone 4S 27. iPhone 5 28. iPod 29. iTunes 30. iWork
[Source: CrunchBase 2012, Apple, Viewed on 16 November 2012,

<http://www.crunchbase.com/company/apple>]

Internal Factors:
1. Strengths-core competencies that confer an advantage when meeting target market needs
1. Apple has established and recognized a unique reputation in the electronics consumer industry. (18.5% market share of global smartphone market) 2. Excellent brand loyalty by its customers 3. Focused R&D driving innovation. 4. Quality The iPhone has one of the brightest and scratch resistant screens in the market. It also has a fine metallic finish that is durable and light. The software suite included is also unsurpassed with their ease of use and resistance to computer viruses The iPhone's touch screen technology is the most advance and capable technology of all the device makers 5. Best designed phone in the market resulting in novelty factor for the phone. The design of the iPhone appeals to many users. It's sophistication aides the profit margins that the iPhone commands from consumers 6. Excellent branding and marketing 7. Economies of Scale in producing iPhones: The iPhone has a price advantage over rivals, because it's produced in such large volumes that the total product prices are lower. 8. The app store allows developers to create software for the iPhone. The natural competition between developers allows iPhone purchasers to get truly innovative apps. The size and innovation of the app store gives Apple a huge advantage in the smart phone market. 9. iTunes Online Store is an excellent source of revenue derived from sales of music and applications for Apples iPhone, iPad and iPod touch devices. 10. Robust financial performance strengthens investors confidence and provides capital for future growth avenues 11. The Apple ecosystem enhances each new product making the ownership of two or more apple products worth more than the sum of their parts. This system is revolutionary because it goes against all post-internet thought. Its uniqueness is that it is a closed system, maintaining its own store, hardware and software applications (apps). This closed system has allowed Apple to enact control over the user experience minimalizing third party costs and maximizing profit.

2. Weaknesses- limitations faced in developing or implementing a marketing strategy

1. High price: iPhone is typically higher in price than its competitors. Price sensitive consumers tend to not consider Apple in buying decisions 2. Googles Android Operating system is slowing Apples growth rate in the mobile phone market. 3. The apple brand is not targeted towards business people, which most smart phones have targeted. Does not have a reputation as being compatible with the corporate world 4. Weak integration with Microsoft Office makes their product line less attractive to business enterprises 5. Comes without Expandable memory Battery is fixed 6. Expensive accessories 7. Lacks features e.g. - Bluetooth transfer, SMS forwarding, FM radio, NFC technology 8. Patent infringement lawsuits may affect financial condition and operating results

External Factors:
1. Opportunities: favourable environmental conditions that could produce rewards for the firm if acted upon properly
1. Huge untapped market 2. More innovation, features and models 3. Migration of iPhone apps to the iPad (If developers are familiar with the iPhone, they can produce apps for the iPad as well. This opens up a larger audience for developers to make money.) 4. Emerging markets could help produce apps that cater directly to their target audience of users. From farmers in Africa to merchants in South America. Innovative emerging market apps could benefit users far more in developing countries where traditional communications is difficult. 5. International expansion of iPhone 6. Expansion of AppStore and consumer base 7. Apple new iAd advertising platform for Applications designed for the iPhone, iPad and iPod touch could be a significant revenue generator. 8. Include NFC (Near-Field-Communications) technology in coming up products 9. Shipment of smartphones expected to be 850 million by the end of 2013 10. Mobile advertising market is forecast to reach approximately $25 billion by 2015

2. Threats: conditions or barriers that may prevent achievement of objectives

1. 2. 3. 4. 5. 6. 7. 8. Mobile manufacturers using Android OS Lack of choice for consumers Threat from cheaper substitutes Component shortages due to Japanese crisis Fierce competition from Samsung in the smartphone market Mobile Phones based on Microsofts new Mobile 8 Operating System Online Music Stores from Amazon, Yahoo! and Wal-Mart offering music cheaper. Dependence on specific suppliers may affect to operations