Apple Inc. SWOT Analysis



Apple Inc. has realized significant growth since its foundation because of its ability to address its limitation and overcome threats and weaknesses. The company can exploit many opportunities to remain ahead of its competitors. However, the premium pricing strategy has remained a major challenge for the company. Its products are available in the market at a relatively high price making them unaffordable to customers in the low-income brackets. The company products are only accessible to the middle and high-income brackets which are the minority in the global market. This means that the company is missing the market for the majority of people because of an unfavorable strategy. Apple has been attempting to push buyers to go for more expensive devices to boost stagnant iPhone sales. The high prices of its products are to blame for the poor performance of the company’s products in developing countries where most customers are more concerned about the price. Although the company is attaining huge profits from its limited sales, it is missing massive sales from low-income earners.


The company has many opportunities that it can exploit to realize success and improve its growth in the future. It has an opportunity to develop new product lines, expand its distribution network, and increase its sales volume to meet the ever-rising demand. This can be achieved by enhancing the distribution strategy and embracing aggressive marketing measures, particularly for mobile products. There is a rising demand for internet-enabled devices, meaning that the company can benefit by exploiting the emerging markets. Besides, the company can explore new product lines to boost its potential. In this regard, the company can introduce and develop better products to meet diverse demands in the market. The many available opportunities are an indication that the company can attain massive growth regardless of the extent of competition in the market. The company can innovate and develop new products with new and attractive features to customers. The lucrative technology would make its products unique meaning they would only be available from the company. Anyone intending to acquire such a product would have to come to the company and be willing to pay for it.


Having many opportunities does not mean that Apple, Inc is immune from threats in the market. Some of the threats facing the company are the increasing cost of labor in many countries, stiff competition, and product imitation. The industry depends on the ability to innovate better products. The ever-changing technology is threatening the future of the company, meaning that it must make every effort to improve its technology from time to time. Apple must put in place effective measures to maintain its competitive advantage and remain focused on its ultimate objectives.

The aggressiveness of the firm is one cause of tough competition. Competing companies such as Samsung have embraced rapid innovation intending to eliminate Apple out of the market. These companies are making every effort to develop better and cheaper products than Apple. They aim to take away the market currently taken by Apple. On the other, the company faces the threat of emerging companies. Stronger companies can emerge and compete stiffly with Apple. Such companies can come with stronger and more durable products that would reduce or occupy the market currently being enjoyed by Apple. Imitation and stiff competition can sweep Apple out of the market.

On the other hand, imitation is a major threat to this company. Many manufacturers are attempting to imitate Apple’s features and design to take away their customers. The rising cost of labor in countries such as China hinders the company from attaining its desired profit margins.


Apple, Inc has strengths that enable it to take advantage of its opportunities and overcome its weaknesses. The company’s strengths include high-profit margins, strong brand image, as well as, innovative processes. The company presents the strongest and most valuable brands, and it has what it takes to keep on introducing new products. Many customers continue to prefer the company’s products regardless of their prices and extent of competition. The brand is recognized around the globe making it easier for the company to sell its products. The company’s customers tend to associate products with good quality, thus, continue to trust and offer a huge market.

Its premium pricing strategy enables the business to fetch massive returns from the market including when limited sales are attained. Since its products are expensive, they leave the business with huge profits. It targets customers who are more interested in quality than the price. These customers are usually willing to pay any cost so long as they get what they want. The massive returns have enabled the company to invest heavily in infrastructure and improve its ability to produce many products, and enhance its efficiency and effectiveness.

Intensive growth and generic competitive strategy facilitate effective rapid innovation. The company embraces the latest technologies in the development of new products making it remain ahead of its competitors and enhance its competitive advantage. In this regard, it is difficult for emerging similar companies to compete with Apple since it has invested in creativity and innovation.