swot analysis
Apple SWOT analysis 2013
Strengths Weaknesses
1. Customer loyalty
1. High price
combined with
2. Incompatibility with
expanding closed
different OS
ecosystem
3. Decreasing market
2. Apple is a leading
share
innovator in mobile
4. Patent infringements
device technology
5. Further changes in
3. Strong financial
management
performance
6. Defects of new
($10,000,000,000
products
cash, gross profit
7. Long-term gross
margin 43.9% and no debt)
margin decline
Strengths
1. Customer loyalty combined with expanding closed ecosystem. While at first Apple’s closed ecosystem was a weakness for the business, this has now changed. First, Apple now has a full range of apps, software and products that are interlinked and support each other. Second, new products and supplements will be released soon (iTV), hence expanding the ecosystem. Third, Apple has a strong customer loyalty, which increases due to Apple’s closed ecosystem, which, in turn, is supported by customer loyalty. So the combination of Apple’s expanding closed ecosystem and customers’ loyalty increases firm’s competitive advantage.
2. Apple is a leading innovator in mobile device technology. Apple has been chosen as the most innovative business in the world for the 3rd time in 2012. Company’s core competency of producing innovative products is the strength the company builds upon and is able to bring the most innovative products to the market.
3. Strong financial performance ($10,000,000,000 cash, gross profit margin 43.9% and no debt). Apple’s financial performance is one of the best among many companies. Company currently (end of 2012) holds about $10,000,000,000 in cash, which can be used for acquisitions, buying back company shares and other matters. It also has higher gross profit margin than its main competitors, which is equal to 43.9%. Company has no debt and is not directly affected by interest
Strengths Weaknesses
1. Customer loyalty
1. High price
combined with
2. Incompatibility with
expanding closed
different OS
ecosystem
3. Decreasing market
2. Apple is a leading
share
innovator in mobile
4. Patent infringements
device technology
5. Further changes in
3. Strong financial
management
performance
6. Defects of new
($10,000,000,000
products
cash, gross profit
7. Long-term gross
margin 43.9% and no debt)
margin decline
Strengths
1. Customer loyalty combined with expanding closed ecosystem. While at first Apple’s closed ecosystem was a weakness for the business, this has now changed. First, Apple now has a full range of apps, software and products that are interlinked and support each other. Second, new products and supplements will be released soon (iTV), hence expanding the ecosystem. Third, Apple has a strong customer loyalty, which increases due to Apple’s closed ecosystem, which, in turn, is supported by customer loyalty. So the combination of Apple’s expanding closed ecosystem and customers’ loyalty increases firm’s competitive advantage.
2. Apple is a leading innovator in mobile device technology. Apple has been chosen as the most innovative business in the world for the 3rd time in 2012. Company’s core competency of producing innovative products is the strength the company builds upon and is able to bring the most innovative products to the market.
3. Strong financial performance ($10,000,000,000 cash, gross profit margin 43.9% and no debt). Apple’s financial performance is one of the best among many companies. Company currently (end of 2012) holds about $10,000,000,000 in cash, which can be used for acquisitions, buying back company shares and other matters. It also has higher gross profit margin than its main competitors, which is equal to 43.9%. Company has no debt and is not directly affected by interest