} Strong marketing: Apple is known for its effective marketing campaigns that focus on the benefits of its products and the emotional connection customers have with the brand. Fill in your details below or click an icon to log in: You are commenting using your WordPress.com account. Instead of growing by acquiring its competition (horizontal integration), the company chose to grow by venturing into other activities along the industry value chain. Who Owns Available at: Statista (2019). Available at: Samsung Electronics Co., Ltd.(2019). The lack of innovationUnder Steve Jobs, Apple introduced many iconic industry-changing products like the iMac, iPod, iTunes, iPhone, App Store, and iPad. In this instance, I will be using this technique to explore 'Apple music', a newly established music platform . padding-bottom: 0px; Even with the lowest R&D budget, Apple was still able to generate more revenue than any of its rivals. To capitalize on this growing trend, Apple has launched multiple successful streaming services, such as Apple Podcasts, Apple Music, and Apple TV+. At the beginning, most smartphone manufacturers were competing with each other based on hardware, design, software and additional services. Why iPhone X Isnt The Answer To Apples China Problem. One of the problems that the organization is experiencing is with its music marketing strategies. Patents, especially software and design patents, are often vague and technology companies often breach them. 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. iPad category, which includes iPad, iPad Pro, iPad Air and iPad mini products, accounts for 8.2% of the total Apples revenue. height: 150px; To protect customers from malicious actors, Apple has refused to provide such a backdoor mechanism; however, the mere possibility of one jeopardizes consumer trust in iPhone security if ever exploited by bad actors. padding: 30px 0px 0px 0px; As one of the most innovative tech giants of the modern era, along with Amazon and Google/Alphabet Inc., Apple continually sets new trends when it comes to technology development. Nonetheless, the VR market is going to be worth over US$30 billion in the future and Apple shouldnt miss this opportunity. --divider-width: 100%; Design excellence: Apples products are known for their sleek, elegant, functional, and aesthetically pleasing design. Strength: iTunes Music Store is a excellent source of revenue, especially with the iPod and the accessibility on Windows platform. font-size: 1.1rem; Available at: Fortune (2019). The company receives US$142.381 billion or 54.7% of its total revenue from iPhone sales alone. Few of its rivals are as dependent on the sales of one product as Apple. This has the potential to threaten the companys reputation and incur losses for the company and its customers. Press Esc to cancel. 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. . height: 150px; Google also allows its virtual assistant to be added to third party hardware. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Create a free website or blog at WordPress.com. Apples revenue growth in China 2012-2019. It carries a strong brand reputation. Smartphone Brand Loyalty Statistics (2019). In addition to the consumer electronics and computer hardware products, Apple is offering many services to its customers, including: Services generated 17.8% of the companys revenue and was the second fastest growing category for Apple, growing 16% in 2019. Apple should continue to focus on developing its unique software and hardware ecosystem, which is the main companys differentiator and the main competitive advantage over the rivals. } Figure 6. [20] Since 2012, the company has been awarded the most innovative company title only once. In this SWOT analysis tutorial, we will conduct Apple SWOT analysis. perform swot analysis for amazon. Due to the Apple brands popularity and its growing user base the company is becoming one of the main targets for attack by personal information thieves. (LogOut/ Available at: Globe News Wire (2019). RELEASED OCTOBER 12, 2011 . The companys brand reputation and customer loyalty also play a significant role in consumer decisions to purchase tits products and services. window.mc4wp = window.mc4wp || { Innovative products: Apple is known for its innovative products that push the boundaries of technology and design. SWOT Analysis of Apple Inc. for 2021. })(); Copyright 2019 Daniel Pereira - The Business Model Analyst. callback: cb NEWSLETTER The billions of people who use Facebook are affected by Apple's strategy to squeeze more cash from apps. This gives them a much quicker path from the concept stage to the finished product compared to almost anyone else operating outside Silicon Valley. Apple, therefore has hundreds of millions of user records that could be stolen. } Apple have the ability to take over the technology industry, however I feel their supremacy will not be boosted by taking over the music streaming. Regulatory changes: Apple is subject to various regulations and laws governing the technology industry. 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. Globally Iconic 3. } Refunds and Policy [23], A research done by Research and Markets[20], indicates that AR market could be worth US$60.55 billion by 2023, growing on average by 40.29% every year. #text-292481563 { Availability on Android phones and Windows PCs as well as on iOS, Mac, iPhones, iPads and Apple Watch. Privacy, data security, or antitrust regulation changes could impact Apples business model or require the company to change its products or services significantly. } #section_964939376 .ux-shape-divider--top svg { The company designs, manufactures and markets smartphones, tablets, personal computers, wearables and accessories, and offers many related services including financial services. Available at: Research and Markets (2018). Augmented Reality and Virtual Reality Market by Offering, Device Type, Application, and Geography Global Forecast to 2023. forms: { This means that Apple currently receives a large share of its profits in currencies other than the U.S. dollar. #gap-325806325 { Apple Music's service costs the user 9.99 per month, and the platform is already installed onto each Apple product, to make it easily available to consumers. Available in 100 countries as opposed to 58 for Spotify. Companies have also said that they felt forced to charge people money in their iPhone apps. Apples product ecosystem is comprised of: Apples ecosystem is the result of the companys ability to design a wide variety of integrated proprietary hardware, software, applications and services. If Android will become as good as iOS in delivering a great customer experience, iPhones unique selling proposition will disappear. #text-292481563 > * { How about the virtual reality market? Virtual reality (VR) and augmented reality (AR) are two up-and-coming technologies that have gained traction amongst tech giants around the world in recent years. Improved smartphone and wearable technologies have given rise to many opportunities for Apple. Any changes Apple makes become a market trend, especially in the smartphone market. } Their competitor Tidal offers a high-bitrate option (1411kpbs lossless FLAC) at a pricer subscription. The list is as . Apples brand recognition extends to its App Store, making it easy for new users to find the apps they need quickly. STRENGTHS: Popular tech brand: This means that customers must purchase Apple products in order for them to be used together without any modifications or additional software purchases. [3] The company has revolutionized the smartphone market and has created one of the most iconic brands in history. [7], Figure 2. Except for Google and Samsung Electronics, few other companies could seriously attempt to challenge Apples competitive advantage. The company was founded in 1976 by Steve Jobs, Steve Wozniak, and Ronald Wayne and is headquartered in Cupertino, California. Moreover, Apple has a reputation of developing highly innovative, well designed, and well-functioning products, as well as for delivering a great customer experience and sound financial performance. These and many other factors resulted in Apples revenue dropping by US$8.264 billion or 16% in China in 2019. I have chosen Apple for this analysis. A strong dollar does not only decrease the profits from foreign countries but also makes the companys products more expensive and less attractive to the customers abroad. Many Chinese now consider their own local brands as quality products. Unique ability to design and develop proprietary hardware, software, applications and services, 1. 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. [34] Android also closes the quality and user experience gap between it and iOS through constant improvement. The SWOT Analysis of Apple is a vital strategic planning framework that can be used by Apple managers to do a situational analysis of the company. } }. #section_1771581351 .ux-shape-divider--top svg { 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. Iniciar sesin Registrate. Wearable Devices Market worth $62.82 billion by 2025- Exclusive Report by Meticulous Research. padding-top: 0px; ET TV+, iTunes, Apple Card, and Apple Music are among the current apps to be released and updated, demonstrating your ability to constantly innovate your product range. However, Apple still has an option to differentiate its tablets and smartphones with additional services through its ecosystem. Want Receive new Business Model Analysis direct on your inbox? While Apple has many strengths as a brand, there are also some weaknesses that the company faces: 1. #section_964939376 .ux-shape-divider--bottom svg { --divider-top-width: 100%; The more significant financial commitment needed to purchase these products and services puts them out of the reach of many consumers. Apple services are not just confined to iPhones, MacBooks, and ipads. Background of The Apple Apple is famous for its iPhone, iPad and Macbook. Available at: Johnson, L. at Macworld (2019). Strengths. In 2018 alone, Apple sold 217.72 million iPhone devices[36] which could potentially be targeted through various software exploits and bugs. #col-803787974 > .col-inner { Pregunta al Experto. 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. Spotify is the leader in music streaming. Connect: a social networking feature, which lets fans follow artists. Apple AR headset rumors: Apple may release headset in 2022, glasses by 2023. Smartphones and tablets are becoming a commodity, which could impact the companys gross margins. Soundcharts is an analytics tool that tracks more than a thousand Apple Music charts in one analytics dashboard. 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. 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. It involves identifying the internal and external factors that can affect a ventures success or failure and analyzing them to develop a strategic plan. Retention Rates in The Smartphone industry. Apple has now become a household name; there will be hardly any house that doesn't have an Apple device. Apple has been successfully competing in China since entering the market in 2009. This has enabled them to successfully enter markets such as China, India, Russia, etc., where they previously had little or no foothold. The SWOT report depicts all micro and macro factors and influencers that have a tremendous impact on Apple's business model, business, and marketing strategies. Despite those competitive advantages, Apples products and services are seen as luxury items that only rich people in China can afford. Customers praise the companys products for their innovation, design, ease-of-use, reliability and the status they convey. According to BankMyCell, Apple retains 74.6% of its customers, compared to Samsungs retention rate of 63.9% and LGs 40.7%. While Apple is a highly successful brand with many strengths, the company also faces challenges and weaknesses that it must address to maintain its position as a leader in the technology industry. Apple Inc. has become the most valuable company in the world worth US$ 2,6 trillion in 2023. SWOT Analysis of Apple 3. Family plan: Apple music offers a family subscription plan with its $14.99 a month generously allows up to six users at a time. The companys marketing efforts have helped to build awareness and generate excitement around its products. } Understanding these elements both strengths and weaknesses and opportunities and threats via a SWOT analysis is essential for any company to develop competitive advantages. Theres no guarantee that Apple, willingly or not, will not breach more patents in the future, resulting in damages that have to be paid and the associated negative publicity that would hurt the companys reputation. U.S. Dollar can still roar in 2020 even as it ends 2019 with a whimper. Apple is finding it very hard to differentiate its iPhones through incremental hardware improvements, as are other smartphone manufacturers. Integration of AI and machine learning: Artificial intelligence and machine learning are becoming increasingly important in the tech industry, and Apple has an opportunity to integrate these technologies into its products and services. Available at: Apple, Inc. (2020). Nonetheless, its gross margins are declining and will continue to decline. Apple Music Could Generate 2.5% Of Apple's Total Revenue Spotify has 34% global market share in streaming music, compared with 20% for Apple, Munster estimates. @media (min-width:550px) { It has a loyal customer base that continues to grow due to its innovative products, design quality, and user experience. #section_1771581351 .ux-shape-divider--bottom svg { 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. 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. Economic factors: Economic factors such as recessions, inflation, and currency fluctuations can impact consumer spending and purchasing power. 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. Over the next few years, Apple will continue to grow successfully. } event : evt, } Apple released its first iPhone in 2007, disrupting the mobile phone market and setting the standards for the new smartphone market. The reality of VR/AR growth. Many reports suggest that Apple will launch its first AR headset in 2022 and a pair of AR glasses in 2023.[26]. } Thats because Chinese rivals Huawei, Vivo, OPPO, Lenovo and Xiaomi are capable of manufacturing high quality smartphones and tablets for much lower prices than Apple. At the moment, software is the major differentiator between Apples iPhones and its rivals devices. First, according to Tim Merel from TechCrunch[25], the AR market needs to overcome 5 obstacles to become a mass market: With an introduction of an iPhone 11 and the companys recent acquisitions of PrimeSense, Metaio and RealFace companies, who all work on various 3D technologies and face recognition, the company is now capable to overcome all 5 obstacles. Change), You are commenting using your Facebook account. I've created a SWOT analysis to make clear what aspects both companies have to their advantage and disadvantage. 2018 Annual Data Breach Year-End Review. Save my name and email in this browser for the next time I comment. Apple is operating in the technology industry where competition is often based on patents. A SWOT Analysis of Apple Music's Presence in the Blockchain Technology Strengths Opportunities On-demand streaming. -Beats 1: a 24/7 radio driven by Zane Lowe features an all around the clock live broadcast from DJs based in Los Angeles, New York, and London. Entering into Area of Non-Competency 4. Moreover, since 2018, their annual net income has exceeded a staggering $50 billion. 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]. As of 2018, Apple had a market capitalization worth over $1 trillion, making it the first American technology company to ever reach such heights. The company should change its strategy in China or the companys market share in it will continue to decline. #row-1695831028 > .col > .col-inner { Apple's Strengths. Companies engage in R&D so they can introduce innovative products and services that satisfy ongoing consumer needs for newer and better offerings. Over 305.2 million wearable devices were sold in 2019 alone, representing 71.4% market growth over 2018. Apple needs to focus more on. 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apple music swot analysis