当前位置：文档库 › apple swot分析

apple swot分析

TABLE OF CONTENTS

Company Overview (3)

Key Facts (3)

SWOT Analysis.....................................................................................................4Apple Inc.

Page 2

T ABLE OF CONTENTS

COMPANY OVERVIEW

APPLE INC. (Apple or "the company") designs, manufactures, and markets mobile communication and media devices, personal computers, and portable digital music players, and sells a variety of related software, services, peripherals, networking solutions, and third-party digital content and applications.The company primarily operates in the US, Europe and Asia Pacific. It is headquartered in Cupertino, California and employed 84,400 people as of September 28, 2013, including 80,300full-time equivalent employees and 4,100 full-time equivalent temporary employees and contractors.The company recorded revenues of $170,910 million during the financial year ended September 2013 (FY2013), an increase of 9.2% over FY2012.The operating profit of the company was $48,999million in FY2013, a decrease of 11.3% compared to FY2012.The net profit was $37,037 million in FY2013, a decrease of 11.3% compared to FY2012.KEY FACTS

Apple Inc.

Head Office 1 Infinite Loop

Cupertino

California 95014

USA

1 408 996 1010Phone

Fax

https://www.wendangku.net/doc/df11718987.html,

Web Address 170,910.0

Revenue / turnover (USD Mn)

September Financial Year End

84,400Employees

AAPL

NASDAQ National

Market Ticker Apple Inc.

Page 3

Company Overview

SWOT ANAL YSIS

Weaknesses Strengths

Product gaps could prove to be competitive disadvantages A combination of horizontal and vertical

integration created formidable competitive

advantage

High dependence on iPhone and iPad product lines Apple commands high ASPs in an industry

characterized by declining ASPs

Significant growth rates and cash flows

Threats Opportunities

Premium pricing could limit the market share gains in the emerging nations Growth opportunity in the enterprise market

Emerging nations provide strong growth

opportunities

Operating in complex and challenging environment could impact market position Wearable technology market and Apple TV

present growth prospects T elecom carrier ’s moves to reduce

subsidies has the potential to harm Apple ’s

market

Strengths

A combination of horizontal and vertical integration created formidable competitive advantage Apple has over the years followed integration both horizontally and vertically and as a result emerged as a formidable competitor.The company's multiple devices provide horizontal integration. Apple has presence across main digital media devices of computing and mobile communications.Through PCs, tablets, smartphones and other devices, Apple aimed at offering a whole range of associate products and devices. Apple through vertical integration connected the user experience across the devices.The company offers hardware, software, content, services and also retails its products creating vertical integration. Manufacturing hardware gives complete control over design aspects and quality of products in the market. In addition to the hardware, the company also built strong software and content business which is equipping Apple with several competitive advantages.The Apple Inc.

Page 4

company's operating system spans across multiple devices and includes content and application. Consequently, switching to a competitor becomes difficult due to the dependence on iOS. Another key integration aspect that has enabled Apple to gain competitive advantage is the content offering. The company's content base is large and is shared across all devices through iTunes. iTunes is a storefront offering all kinds of media. In addition to the above, the company also engages in retailing. This helps Apple to have control over successfully positioning its products to the end user.

Apple has followed a vertical integration strategy to build a formidable competitive advantage.The company's business strategy leverages its unique ability to design and develop its own operating systems, hardware, application software, and services.The vertical integration provides control over the entire user experience or process from hardware to software which facilitates higher customer loyalty and provides lock-in.The vertical integration that Apple achieved is very difficult to replicate as evidenced in recent times. None of the company’s competitors were able to replicate this model with resonating success as Apple. Google’s sale of Motorola’s mobile division indicates that this strategy and business model is difficult to replicate although the competitors have tried.This provides Apple with significant competitive advantages. Apple’s customized in-house chip design, well integrated hardware, software, applications and service equips the company with an ability to create high quality products that are unmatched in the industry. According to the industry estimates, Android accounted for about 80% of smartphone shipments in second quarter of 2013 while Apple’s iOS accounted for only about 13% of the shipments. However, Apple’s smartphone is much more lucrative as it attracted high value customer base and its smartphones accounted for 55% of mobile web usage.This data indicates that Apple’s vertical integration strategy enabled it to create products which are providing the customers with what it calls a good product experience.

Apple enjoys a favorable competitive environment provided by the user dependence on iOS which enables it to earn incremental earnings by offering all associated devices. In the era of convergence this is a sustainable competitive advantage. Apple's sustainability of market share stems from the fact that it was able to successfully connect its devices with each other and one generation of devices with the next.Through these integration models, Apple built sustainable competitive advantages that are hard to replicate.

Apple commands high ASPs in an industry characterized by declining ASPs

Apple has launched several successful products and follows a strategy of catering to high value customer base. Apple’s products ASPs continued to remain stable while rest of the industry witnessed declining ASPs.The Apple iPhone which was initially launched at $600 remained immune to the decline in ASPs in the smartphone category.The estimates indicate that Apple’s iPhones sell at an ASP of about $650 while Android's phones ASP has dropped since launch and sell at about $276 while the ASP of Windows phones is $301. According to the industry estimates, Apple’s iPhones will continue to command ASPs a little over $600 even by 2018. By 2018, the Android smartphones are expected to be sold at ASPs hovering around $200. In addition to the smartphones, the company was also able to defend its ASPs in the Macs. According to the industry estimates, Macs are sold at a premium ASP of $1,300 in a PC market where the company’s competitor, Microsoft is unable to sell PCs at an average price point of $311.

Apple Inc.Page 5

Apple’s ability to command high ASPs and defend the same highlights the superiority of the company’s products.This strategy allowed the company to capture over 85% of the entire industry's global phone profits in the last quarter of 2013, according to the industry estimates. Comparatively, its peer Samsung has won significant market share at the cost of losing margins. Apple’s products were able to maintain high ASPs despite entry in to the developing economies where ASPs of consumer goods are usually pressurized.This once again highlights that Apple was able to gain from its product strategy which enabled it to defy many industry downtrends.

Significant growth rates and cash flows

Apple enjoys robust growth rates and strong cash resources.The revenue growth rates achieved by the company are a play of both increased unit sales and pricing power.While the unit growth has been derived from the appeal of its products gained in the market place, the offshoot of successful product lines has resulted in Apple gaining a dominant position, which has helped it command high pricing power.

The combination of these factors enabled Apple to attain industry leading growth rates. For instance, Apple’s revenues grew at a compounded annual growth rate (CAGR) of 41% during FY2009-13. The company’s net income grew by 46% annually over the same time period. Moreover, despite the company’s growth approaching maturity, Apple registered a 9.2% growth in revenues on

year-over-year basis in FY2013. Furthermore, the company's cash position grew strongly in the recent times. Apple's cash from operations grew at a CAGR of 130% during FY2009-13 to reach $53,666 million by the end of FY2013.The company’s revenue growth and cash position provide a strong platform for it to invest in growth and expansion.The resource base is critical for remaining competitive in the technology space which is rapidly and ever changing.The company’s cash base and strong growth history therefore provide competitive advantages.

Weaknesses

Product gaps could prove to be competitive disadvantages

Apple is a late entrant in certain product categories which could prove to be a competitive disadvantage. Despite having shaped the tablet market with the iPad, the company has been slow into phablets, a model that includes features of both a phone and tablet. Apple has not launched a larger screen phone (a plus 5.6 inch display) which indicates that the company has no presence in the phablet market. Comparatively, Samsung launched phablets and have strong presence in this market. Samsung created the market for phablets in 2011 with the Galaxy Note and leads this market along with local Chinese device makers. Phablets are expected to be a lucrative product category and Apple’s absence in the market can be a competitive disadvantage as in the consumer devices market, a successful phablet product can effectively capture share from both the iPhone and iPad. In addition to the phablets, the unavailability of Apple products across different price points is also a major gap. Apple positions its products in the premium category and offers them at a single price

Apple Inc.Page 6

point.The average selling price of an iPhone has remained at about $650, putting Apple's gadgets out of reach for most buyers. Comparatively, the company's competitors like Samsung have products at varied price points. As a result, the competitors have access to a large market base and are better positioned to capture varied customer interests. Furthermore, lack of products at lower price points is proving to be a challenge while addressing price sensitive customer base. Price is the only effective competitive disadvantage that Apple's competitors have been leveraging. Furthermore, the company has presence only in the smartphone segment, while its competitors have presence in both smartphones and feature phones.These factors limit the company's addressable market compared to competitors.

Another product delay has been in the wearable technology market. In this segment Samsung launched the Galaxy Gear smartwatch. According to the industry estimates, Google’s smartwatch is expected to hit the markets sooner than that of Apple’s. Although none of the products in the wearable technology market have captured significant customer base, the traction the peers have over Apple could mean that the competitive environment could be unfavorable for the company.

The product gaps and product delays could mean that the company’s peers have a head start in certain product categories.

High dependence on iPhone and iPad product lines

The company's revenues and growth rates are largely dependent on iPhone and iPad product lines. The iPhone and iPad product lines together accounted for 72.1% of the total revenues in FY2013. Although, these product lines have been the growth drivers for the company, any decline in the growth rates could impact the company’s performance. Dependence on few product lines increases the business risk, especially in an industry characterized by fast paced technological changes.The risk is aggravated as the company has been losing market share in tablets market. In the first quarter of 2014, iPad sales accounted for less than one-third of the total tablet sales.This was a decline compared to 40% share that iPad commanded in the first quarter of 2013. Comparatively, Samsung’s market share increased by five points and was 22.3% in the first quarter of 2014.The market share losses of a key product could have a material adverse impact on the company’s growth prospects. Opportunities

Growth opportunity in the enterprise market

Apple has significant opportunities to tap in the enterprise, government and education markets, which are largely untapped so far. As 'bring your own device' (BYOD) trend starts making inroads in the corporate sector, Apple will be able to effectively sell into this space.The popularity of the iPhone and iPad with consumers is spilling over into the business world, as mobile users increasingly use their personal devices for business purposes. In recent times, companies are opening up their mobility strategies to allow for more choice, which has benefitted Apple.The company effectively tapped into this market. A recent survey indicated that iPad usage in business has doubled in the Apple Inc.Page 7

recent times. Further, reports released by certain enterprise file sharing and hybrid cloud storage companies suggest that they have been experiencing increased enrollment of the iOS devices in their environments.

Several instances indicate Apple has been capturing the enterprise market from Blackberry, which was a leading player in the segment. Apple is evidently becoming a trusted enterprise solution provider, and recent deals show that several companies switched from the BlackBerry platform to Apple's iOS platform.This list includes the US Air Force, which will replace 5,000 Blackberry devices with iOS devices.The company is focusing on the growth potential of its products for enterprise purposes, and is positioned well to grow in this segment.

Moreover, providing an integrated service system of tablets, mobile phones, and computers, running on the same operating platform offers the company a competitive edge in the enterprise market. In contrast, Google and Samsung do not offer an integrated software and hardware system to compete in the enterprise market for smartphones and tablets. In addition, growing popularity of mobile payments in the enterprise market will provide a significant growth opportunity to the company. Apple has already transformed the point of sale experience, as iPads and iPhones are integrated with apps and hardware, such as Square Wallet, to facilitate m-commerce transactions.

These factors indicate that enterprises will emerge as key customer group for the company's products and addressing the customer group will enable it to drive growth.

Emerging nations provide strong growth opportunities

Although Apple has gained significant traction in the emerging markets, it is yet to tap the full growth potential offered by these markets. Unlike in developed markets, the lack of carrier subsidies and price sensitive customer base are some of the challenges that the company is facing in case of emerging markets.This to a certain extent impacted the pace of expansion in these markets. However, the popularity of its products enabled the company to gain traction and Apple is set to capture the huge potential offered by these economies. In 2014, smartphones and tablets are expected to continue penetrating rapidly into emerging markets. Consumers in developing economies, particularly Asian countries like India and Indonesia, are forecasted to buy these devices at significantly higher rates than in the US and Western Europe. Moreover, the rising middle class population in these countries is expected to be the main driver for growth as they would be replacing cellphones with tablets. Also, in emerging nations, smartphone adoption is still relatively low as people there look to upgrade their handsets. According to industry sources, India and China alone will purchase approximately half a billion smartphones in 2014, accounting for half of the total smartphone purchases across 47 nations in 2014. Moreover, India’s smartphone population is expected to double in 2014. The company’s strong product offerings and the strong growth potential in the emerging market will drive the demand for its smartphones and tablets in these markets.

Wearable technology market and Apple TV present growth prospects

Apple Inc.Page 8

Apple is expected to enter the wearable technology market. According to industry estimates, the wearable technology market is expected to register strong growth in 2014. Further, this market is expected to be worth over $50,000 million by 2018.The company given its success in smart devices, is likely to develop products that will enable it to foray into the wearable technology market to tap into the growth prospects. In addition, another significant opportunity Apple is trying to tap into is the company’s foray into the TV market.The company has been a dominant player in the

internet-connected set-top box market and will continue to be so. In 2013, Apple TV dominated the market for under-$100 set-top boxes.The market for internet based video delivery is booming. Apple TV’s appeal is enhanced by unique feature of the new Apple TV which are Apple's patented three dimensional (3D) remote, which will enable a full iOS experience on TV. Another significant development in this space has been the company’s move to enhance its service by entering into a deal with Comcast.The companies are in discussions regarding use of Comcast’s cables. Apple is looking for Comcast to allow users to stream live and on-demand TV programming and digital-video recordings that are stored in the cloud.The company will be able to enhance the quality of its TV service by separating this streaming from public internet traffic over the last mile which is the portion of a cable operator's pipes that connect to customers' homes.This will ensure the bandwidth to deliver such services which essentially makes Apple TV video the same quality as Comcast's TV transmissions to normal set-top boxes.Wearable technology and Apple TV services will be able to exploit new growth trends in the industry which will allow the company to not only enhance its growth prospects but also to address new markets.

Threats

Premium pricing could limit the market share gains in the emerging nations

Price can be one of the key competitive disadvantages of Apple that the competitors can effectively use to gain market share.This will prove to be a challenge while addressing the emerging markets, which become important as the advanced economies' smartphone markets attain maturity.The emerging markets lack carrier subsidies and the customer base in these markets is highly price sensitive and therefore competing with lower priced Android products could be a challenge.The revenues from emerging market for Apple products will come from a higher mix of older models. This indicates that as the smartphone markets move towards emerging countries, the average prices will start to fall, impacting the margins.The company has been facing marginal declines in average price per product. Apple has not been able to effectively gain market share in emerging markets where historically, lower priced phones like Nokia have been popular. Apple's premium pricing strategy will prove to be challenging and could have a negative impact on the company’s gross margins.

Operating in complex and challenging environment could impact market position

The markets for the company’s products and services are highly competitive and complex, and the company is confronted by aggressive competition and challenges in all areas of its business.These markets are characterized by frequent product introductions and rapid technological advances that have substantially increased the capabilities and use of mobile communication and media devices, Apple Inc.Page 9

PCs, and other digital electronic devices. Apple faces intense competition from well-funded and experienced peers like Microsoft, Google and Samsung, among others. Google's Android platform is one of the largest mobile operating systems and the Windows is also estimated to capture increased market shares.

In addition to Microsoft and Google, the company competes intensively with Samsung, which has approximately twice the market share of Apple.The company’s other competitor includes Lenovo that offers a strong line of ThinkPad tablets and IdeaPad Y oga. Lenovo is well positioned to dent the market share of Apple in China. Freely available music and videos and easier-to-use subscription service like Spotify or Netflix could also dent the company’s market share, as Apple sells this content through iT unes.

Also, Apple is facing challenges in its overseas markets. In China, the government has announced plans to build its own Linux-based processor to reduce reliance on Apple's computers. In India, which is one of the largest addressable consumer markets in the world, Apple has also been facing trouble to establish its stores because of stringent local market laws. Further, the company is shrouded by legal battles across the world.

Operating in such complex and challenging environment could have a negative impact on the market shares and growth rates at Apple.

T elecom carrier’s moves to reduce subsidies has the potential to harm Apple’s market

Apple’s dominant position in the smartphone market is threatened by telecom corporations like A T&T and T-Mobile, who are looking to move away from high subsidies which have been harming their profitability. Carrier subsidies have been significantly responsible for Apple’s strong position in the US smartphone market. AT&T and T-Mobile have recently been changing the dynamics of the market by doing away with the subsidies, thus, posing a threat to Apple’s business. For instance, AT&T launched a new plan where subscribers can get a family plan with up to five lines and 10GB of shared data for $175 per month which is a steep discount from its normal family plan pricing. However, in this plan the handset will not be subsidized. Subscribers that opt for this plan will have to pay for their phones either in single or monthly installments or they will have to carry their old phones.This plan acts as a barrier for users to choose high end Apple products. Further, T-Mobile has done away with subsidies and sold fewer iPhones but registered strong growth.T-Mobile’s growth will provide motivation for other carriers to follow suit.While A T&T could device more plans that will reduce reliance on iPhone sales enabling it to save on the subsidies.This evolving business model where the telecom carriers will do away with subsidies has the potential to harm Apple’s market share in the US.

Apple Inc.Page 10

Copyright of Apple,Inc.SWOT Analysis is the property of MarketLine,a Datamonitor business and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission.However,users may print, download,or email articles for individual use.