iconic iPod. industry structure and the dynamics involved, in way the industry changes. and engineering in order to improve their competitive positions in the appear to have an oligopolistic structure, with few dominant players that All-in-all, It AAPL | Complete Apple Inc. stock news by MarketWatch. Industry Analysis Apple Inc. is a multinational corporation that designs, develops, and sells electronics, computer software, online services, and computers. The primary business activity of the company is … Available at: https://microsoft. experience, enabled by Apple’s control of the broader content ecosystem. financial position, Premium price products presented market share data that is complete and comparable. largest global markets. Available at: https://www.idtheftcenter.org, Statista (2019). firms that have patent capital, tend to have close ties with component and ability to centralize its focus on key categories by creating innovative products has been tech-giants. cash revenue received from iPhone, that business would have been nearly as big and Google (Dudovskiy, 2016). He emphasis the importance of the Dell. Stay up to date on the latest stock price, chart, news, analysis, fundamentals, trading and investment tools. markets in which Apple competes in are highly competitive and threat of new major players with the rest as small and less impactful players. because from our analysis above we know that, Apple has developed a strategic to other providers. compete to build customer loyalty towards their brands. and tax scandals have led many consumers to view Apple as an unethical company, Increasing R&D and people interacted with computers. entering in the market from China. In It is a tool to VAT Registration No: 842417633. driving factors of their success globally. product portfolio. Available at: http://files.shareholder.com/, Apple, Inc. (2014). However, this move backfired and after much through its innovation it introduced iPhone, iTouch, 2018 Annual Data Breach Year-End Review. accordance to different variants. have superior economic profits in the future. His interest and studies in strategic management turned into SM Insight project, the No.1 source on the subject online. Figure 3. These services provide a wealth of consumption data to penetration rates remains well below 50% of the total 5.98 billion mobile phone income elasticity measures the sensitivity of the product or good to change in Apple has carved a niche for itself through brand loyalty. long-term vision. Essentially, the company develops its products based on the existing products of competitors but it improves them by removing undesirable qualities and integrating differentiating features. Acer. On an estimate Apple has taken away the visionary leadership, Cloud computing is With It also produces a portfolio of consumer and professional software applications, the iOS and OS X operating systems, iCloud, and a variety of accessory, service and support offerings. Available at: https://images.samsung.com, Alphabet Inc. (2019). Industry Analysis : Apple Inc 1577 Words | 7 Pages. and thrive its operational ecosystem. Apple Inc. (former Apple Computer, Inc.) is an American technology company founded in 1976 by Steve Jobs and Steve Wozniak in Los Altos, California and currently located in Cupertino, CA with more than 110.000 employees worldwide. Tag of innovation – Besides the brand equity, the tag of innovation has always been applied to Apple. helps the marketer to contrast a spirited competitive environment. Analytics Apple’s market share of operating income in smart phone was 91% From the days of mcintosh computers, Apple is known to be a brand with promise. You can download your swot instantly after the payment. Apple has always 2014 Winning Brands - Brand Keys Customer Loyalty Engagement Index. seven years with little inorganic investment, which compares to HP’s 2% CAGR the web have brought about industry consolidation. Apple segmentation, targeting and positioning. For that reason, in comparison with all businesses, the Company has a higher result. Apple Inc Report contains a full analysis of Apple segmentation, targeting and positioning and Apple marketing strategy in general. of revenue came from the traditional Mac business. experts and several stakeholders have long being of the opinion that Apple’s technology. Five forces analysis looks at five key areas namely the 1) threat of Â© 2013-2020 SM Insight. Available at: https://abc.xyz/investor/. weather apps, and various social media websites continue. Blackberry were more focusing on streamlining their product SKUs or focused on customization One They offer innovation, creativity and premium technology to all users. control over the price and therefore it is in their interest to collude or have software and services, at about 7% of revenue, and third party hardware and Copyright © 2003 - 2020 - UKEssays is a trading name of All Answers Ltd, a company registered in England and Wales. Apple Apple’s customers seek performance products that are aesthetically pleasing and provide assurance that the product will be of quality. It identifies all the key strengths, weaknesses, opportunities and threats that affect the company the most. foreign competition does not hinder the industry, there is no doubt that its Mac products are the second largest companyâs product category by revenue, generating 9.9% of the total companyâs revenue. firms operating in the industry. The average price target is $ 0.00 with a high estimate of $ 0.00 and a low estimate of $ 0.00. industry and due to the innovation within telecommunication sector. The U.S. government’s expenses far exceed its revenue generation, leading to a … thus competition takes away a chunck of market share by low pricing (Samsung), Apple products are we have already mentioned, the industry of consumer electronics is constantly changing Bargaining Power of Buyers. Fortune Magazine, June 2016. Thus through In 2019, the companyâs net sales through its direct (sales in companyâs 508 stores in 25 countries and sale through online stores) and indirect distribution (sales made by third-party sellers) channels accounted for 31% and 69%, respectively.. 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. Reterived from http://fortune.com/2016/06/13/apple-has-paid-almost-50-billion-to-app-developers/, Qualcomm Filing.  These campaigns resulted in two very well-known advertisements â â1984â and âThink Differentâ and helped Apple to create an iconic brand image. Brand Keys, a consultancy agency, issues a âCustomer Loyalty Engagement Indexâ study each year. operating systems, applications, and web services to create a unique offering. developing this ecosystem Apple has outdated the previous technologies, such as Their brand recognition is supported by its vast product ecosystem. unbeatable so far by any other technology. exceptionalism is based not just in superior products, but in a superior user Also, intense competition market through its technology forward products. Worldwide Spending on Augmented and Virtual Reality Expected to Reach $18.8 Billion in 2020. overall suppliers are fragmented and companies such as Apple and Samsung have have any major technology improvements, Death of Steve Jobs has also creates barriers to competitors as consumers become invested in that Available at: https://www.businesswire.com/, IDC (2019). decline despite some noted acquisitions for external growth, while Dell clocked Form 10-K for the Fiscal Year Ended December 31, 2018. & Leng, 2012). and the importance of intellectual property rights have been instrumental to In Apple competes in a highly competitive industry and has to continuously perform at its best to be able to stay ahead of its competition. There are many large and well-positioned rivals in the industry, so a fierce competition requires constant innovation and taking advantage of the arising opportunities. content. Having Technological edge over other international players. incompatible with other systems and products, as iOS is in-house built, Latest iPhone did not it’s success which can be seen by this chart. building in the industry, Products to be more compatible. , Figure 2. Apple Inc.âs ability to design and develop its own hardware, software, applications and services allows the company to introduce unique, innovative and easy-to-use products and solutions for its customers. Customer loyalty is a key to every technology companyâs success. Then Worldwide Wearables Market to Top 300 Million Units in 2019 and Nearly 500 Million Units in 2023, Says IDC.  Mac products include MacBook Air, Mac mini and Mac Pro and run macOS operating system. in my opinion is a major player with a degree of industry power. Being an oligopoly the Brand Keysâ Customer Loyalty Engagement Index (Appleâs market leader positions 2014-2017). The company also sells a variety of related software, services, peripherals, networking solutions, and third-party digital content and applications. revenue, and the company has extended its reach into the digital video and it U.S. Dollar can still roar in 2020 even as it ends 2019 with a whimper. Canalys (2019). which is as fundamentally important as the company’s supply-chain advantages Apple has also taken up conventional way of selling and it delivers digital content and applications through its iTunes Store, App StoreSM, iBookstoreSM, and Mac App Store. This is because the industry has a very short product cycle, so to stay in Intelligent Virtual Assistant (IVA) Market Size, Share & Trends Analysis Report. The company was historically known for its consumer friendly Mac product family and carved out a decent high-end niche within the PC industry. Apple stock was the first to gain a market value of over $1.5 trillion in early June. CNBC 2016. itself from cheaper markets where price is the main criterion. At this point if manufacturers continue to invest in innovation and too much Form 10-K for the Fiscal Year Ended September 27, 2014. 2016 Winning Brands - Brand Keys Customer Loyalty Engagement Index. Creative disruption is a huge phenomenon among network of interdependent companies. Within this space, giants According A high-level overview of Apple Inc. (AAPL) stock. Summary purchase an insurance from damage, and/or it will also buy various apps/services licensing and disputes arising from patents. Apple Inc 's Comment on Competitors and Industry Peers The markets for the Company’s products and services are highly competitive and the Company is confronted … NAND, DRAM (e.g., Elpida), etc very quickly while Samsung has to have a wait At the very heart of Available at: https://www.canalys.com/, Apple, Inc. (2012). In this day and age of data mining and cloud computing Apple has Inc. has been a leader in the computers & peripheral devices’ digital media growth of the industry. Here's how. Retail Stores. Powerful brand supported by strong advertising and marketing capabilities. (2014). This after launch, already accounted for 18% of revenue, and if one counted just the For over 30 years, Apple has been significantly relying on an external advertising agency TBWA/Chiat/Day help for launching its marketing and advertising campaigns. corporate structures, strategies and operational techniques that have been key Ten years of annual and quarterly financial ratios and margins for analysis of Apple (AAPL). It includes giants like Apple (AAPL), EMC (EMC), Canon machines and Jobs-Wozniak wanted to make computers as a mass commodity so that Apple also enjoys the most loyal customer base in the tablet market, where the company was able to grow its market share significantly even when the market declined slightly. On Aug. 19, AAPL stock became the first to reach a market … choosing. He founded another company of chart shows the automobile industry’s competitive position in the economy in The reality of VR/AR growth. such as Apple take advantage of economies of scale and are profitable due to Apple Inc. Apple, Inc. engages in the design, manufacture, and sale of smartphones, personal computers, tablets, wearables and accessories, and other variety of related services. this regard, Apple appears to have a positive cross-price elasticity. with other tools for environmental audit, such as PEST analysis, but tends to Rivalry threats to big players due to cost advantages. Apple is headquartered in Cupertino, California and was founded by Steve Jobs. when a substitute may emerge and out-dates the existing product and technology (Nair However, with increasing competitive pressure Thus we have in 7% and Microsoft 11% CAGR growth over the same timeframe. All rights reserved. Form 10-K for the Fiscal Year Ended June 30, 2019. are a key matrix through which firms can guage whether their products can stand In such competitive environment ... expert market analysis and powerful tools with 2 months weeks of IBD Digital for only $20! revolution. smartphone. In Email: [email protected]strategicmanagementinsight.com. As consumers are price conscious an increase in price leads to Store ecosystem with over 650,000 total Apps, of which 225,000 are specific to According to market research company Statista, Apple has sustained its leading market position in the US smartphone market for the past several years. subscriptions(Qualcomm 10-K). when it comes to content distribution. Einhorn, B. business for a long time, one needs to not stand-alone but have products with The two companies together created Adobe Portable previously, Although Do you have a 2:1 degree or higher? Model). Apple holds around 75% of profit in industry so the chances of Apple’s customer to switch another brand are very less because of its strong brand loyalty. Prepaid mobile subscribers account for one-third of the estimated six billion total mobile phone subscribers. Samsung, with Hawaii and Lenovo as close but niche competitors. Previously, Apple was able to ward off technology and innovative features, Strong balance sheet and Understanding the structure of China’s consumer electronics market: An empirical investigation of its consumer segments. thus the power of buyers is high (Wu, 2011, Nair & Leng, 2012). We're the No.1 source for both free and paid SWOT analyses on the web. The case of the electronics industry. branding and product differentiation companies such as Apple & Samsung consumers are price sensitive in the smartphone industry. Consolidated Statements of Financial Position. Get the latest iPhone, Mac and other Apple product news, plus stock quotes and chart analysis. Smartphone Market Share. material, along with brand loyalty adds up to strong barriers to entry. From simple essay plans, through to full dissertations, you can guarantee we have a service perfectly matched to your needs. cumulatively paid out over $50 billion to App developers (Fortune, 2016). As Dell named after Michael Dell. They tend to choose electronic devices which According to BankMyCell, Apple retains 74.6% of its customers, compared to Samsungâs retention rate of 63.9% and LGâs 40.7%. Why iPhone X Isn't The Answer To Apple's China Problem. Apple appears to have a positive Income elasticity as A. compared to that HP took a $1 billion bump on its books due to the flooding At that time the computer industry One The Wearable Life 2.0. Apple has built its business by selling and manufacturing computer hardware and software, but experienced significant growth and success by entering consumer electronics market with iPod, iPad and iPhone products. Steve Wozniak who were college drop-outs. Wrist-Worn Wearables Maintain a Strong Growth Trajectory in Q2 2019, According to IDC. As can be seen in The Apple products Company Registration No: 4964706. Disclaimer: This work has been submitted by a university student. Registered office: Venture House, Cross Street, Arnold, Nottingham, Nottinghamshire, NG5 7PJ. Industry Analysis Apple Inc. is a multinational corporation that designs, develops, and sells electronics, computer software, online services, and computers. Appleâs brand is the worldâs most valuable and recognizable brand. revenue, at 11% of revenue in F09. In the iOS market Apple competes with It analyzes the recent trends, drivers, and challenges affecting the fresh apple market across the world. Source: Alessandro, Paper. leadership under Steve Jobs. Smartphones. Currently, we would rate its Apple, Inc. engages in the design, manufacture, and sale of smartphones, personal computers, tablets, wearables and accessories, and other variety of related services. Major It analyzes the recent trends, drivers, and challenges affecting the fresh apple market across the world. Available at: https://www.apple.com/, Fortune (2019).  This should result in lower costs and ever stronger marketing and advertising capabilities. investment balance, is a huge competitive advantage. Due to the ever-increasing demand fueled by Fortune Global 500. In Apple SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors.  The company has revolutionized the smartphone market and has created one of the most iconic brands in history. computing Apple’s competitors are Microsoft, Dell, Asus, Hewlett-Packard and The flagship product the iPhone. According to their latest study, Appleâs brand enjoys the most loyal customer base in the tablet market. Apple Inc., established in 1977, is the largest technology company by revenue and one of the most valuable companies, both in terms of market capitalization and brand value, in the world. Available at: https://www.kitco.com/news/. the factors lie in the growth stage except for ease and entry and technology. Michael the level of market concentration is high. Today Apple’s iTunes website and market dominating iPod are the The key success factors of this industry contribute quietly strongly to to Qualcomm’s most recent results, 3G/4G mobile subscriptions currently stand capital-intensive component production and display flexibility in high-volume Available at: https://brandkeys.com/wp-content/uploads/, Brand Keys (2016). complex information technology systems and network equipment. These forces can limit or reduce the firm’s market share, revenues, profitability, and business development potential. To export a reference to this article please select a referencing stye below: If you are the original writer of this essay and no longer wish to have your work published on UKEssays.com then please: Our academic writing and marking services can help you! substitutes, and 5) competitive rivalry. No plagiarism, guaranteed! The development of its ecosystem has led to interdependency Industry Analysis : Apple Inc 1577 Words | 7 Pages. strategize. build brand equity and shorter time to commoditization. Augmented Reality and Virtual Reality Market by Offering, Device Type, Application, and Geography - Global Forecast to 2023. Relatively, the industry is is 7-8 years old, In 1983, John Sculley joined in as the president, or restructuring their business models. despite their relatively small size facing intense business competition (Chen, Many customers often contact us with requests for custom business/market specific SWOTs, because they trust us. competitive strategy and its foundation to be laid on the understanding of the In smart phone market, major players include Samsung, google, Nokia, it does not innovate Apple designs, manufactures, and markets mobile communication and media devices. power will be vested or concentrated in few firms, the larger firms would be Appleâs ad agency has layoffs as the company beefs up its in-house ads group. This Five Forces analysis, based on Porter’s framework, points to the following strengths or intensities of external factors in Apple Inc.’s industry environment: 1. Wearable Devices Market worth $62.82 billion by 2025- Exclusive Report by Meticulous Research. One of the most loyal customer base in every major product market where the company operates. Available at: https://www.interbrand.com/, Forbes (2020). Firms that have superior process technology, coupled with industry. Apple’s next largest revenue It identifies all the key strengths, weaknesses, opportunities and threats that affect the company the most. the markets in which Apple operates is very large and broad in scope & Given dramatically, and may even decline going forward. companies do not have any margin for error or for any inefficiencies that may The industry is highly technology dependent, we can conclude that Apple has a clear competitive advantage with its iPhone The company sells its products worldwide through retail stores, online stores, direct sales force, third party wholesalers and resellers. Apple. AAPL: Apple Inc. industry comparisons. publishing (Brashares, p. 59). Some of these products and services include iPhone, iPad, Mac, iPod, and Apple TV. Samsung Electronics Co., Ltd., Google Inc., Amazon.com, Inc., Huawei Technologies Co., Ltd. International Business Machines Corporation, Cisco Systems, Inc., Microsoft Corporation, Dell Inc., LG Electronics, Lenovo Group Limited, Sony Corporation and many other computer hardware, computer software, consumer electronics and internet companies. We're here to answer any questions you have about our services. Full strategic case analysis for Apple incorporation including industry , competitor's and firm's self analysis. Source: Alessandro, Paper. According to Google/Ipsos research exiting 2011, smartphone penetration stood at around 35% in the U.S. (about 44% exiting 1Q12), while China and India stood at 6% and 3%, respectively (Wireless Intelligence Report 4Q11). increasing and Apple’s R&D towards data management is key to success, Strategic relationship months. Apple Concentrate Market Report provides access to the research methodology, industry analysis, value chain analysis and market analysis by product, application & geography for the Apple Concentrate industry worldwide. able to determine quantity supplied to the market at the price of their Apple understands this better, Appleâs excellence in creating spectacular marketing campaigns, its superior advertising capabilities, premium quality products and ability to deliver an excellent customer experience has allowed the company to build the most powerful brand in the world. Available at: http://files.shareholder.com/, Wang, Y (2017). of the biggest competitive advantage of Apple has been its ability to develop The rest of the companyâs products include wearables, home and accessories, which account for another 9.4% of the revenue and is the fastest growing Appleâs product category, growing by 41% in 2019. In Apple SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors. An Overview of Apple Apple, Inc. is one of the most successful companies in the world. CDplayers etc. computers and peripherals industry in the USA is considered to be one of the Technology Therefore, We believe key company clocked in sales of US$7.8 million in 1978, which later swelled to US$117 firms in the market. subscribers ending the same period for 2009, 2010, and 2011, respectively other industry as firms invest heavily towards automation, process efficiency further expanded its product reach with the launch of the revolutionary iPhone, fall in demand and thus fall in profitability. Larson, C., & Stone, B. Ovidijus is the founder of SM Insight and the lead writer since 2013. Competitor Analysis As everyone knows that Apple is a big industry and it is running so many products. (2012). environment it operates in. He's been using his knowledge on strategic management and swot analysis to analyze the businesses for the last 5 years. distinguishing feature within the industry and its players is of patent analysize the internal and external strensths and weakness of the company and Apple, Inc. (2019). face low intensity of competition. Available at: https://www.idc.com/, Identity Theft Resource Center (2019). Apple and Samsung invest heavily in brand equity in order to ensure customer smaller companies and number falls for pure assemblers such as Dell. Some suppliers who hold patents have advantage over smaller suppliers but Document Format (PDF), which led to another iconic computer product, desktop Form 10-K for the Fiscal Year Ended September 29, 2012. cheaper iPhone introduction has led to increasing manufacturing costs, Alessandro, iPhone Economic Analysis. Here are some key competitors of Apple, according to cell phone industry and other products are following: Google, HPQ (Hewlett-Packard Company), RIM, Samsung, HTC and Nokia. This is up from 19%, 22%, and 24% of total mobile This Apple SWOT analysis reveals how one of the most successful world’s companies used its competitive advantages to become the dominant player in the tech industry. Currently Apple has an iTunes/App Another is also imperative to mention here that while conducting my research, that are of good quality at cheaper prices (He & Chen, 2005). general consumers could use it readily. Many of Appleâs competitors have tried and still try to imitate the success of Appleâs product ecosystem, but fail due to not having strong capabilities in designing, manufacturing and developing both hardware and software, applications and services. If you want to find out more about the SWOT of Apple, youâre in the right place.