Apple SWOT Analysis 2022

MAR 31, 2022 BY ABDUL MOMIN

If you are reading this article, there is a big chance you’re reading it on an Apple device. Apple
has now become a household name; there will be hardly any house that doesn’t have an Apple
device. This Apple SWOT analysis will help us in determining what makes Apple such a big
name in the tech industry.

It has almost been 21 years since the very first iPod was launched. Some of you reading this can
actually relate to how a person owning an iPod was treated like a big deal back in the old days.
Even now, after Apple’s mobile phones and Macbooks are pretty common, many people use
them as a status symbol.

No one would have ever thought that a company that was founded in a garage back in 1976
would be considered the largest tech company in terms of market cap. Apple mainly focused on
producing computers and computer-related accessories in its initial days. Still, later in the 2000s,
they diversified their products and came up with iPods, iBook, Mp3 players, and iPhones which
acted as a turning point for Apple.

Apple now operates globally with a market cap of $2.676 trillion. In order to understand this
success story in a much better way, we will conduct a SWOT analysis.

A SWOT analysis template consists of four factors through which a company is analyzed. The
strength, weaknesses, opportunities, and threats of a company help us to see how a company has
managed to make it big and what are its future aspects.

The S in the SWOT analysis stands for the strengths of a business, areas where a business is
strong. Therefore, we can consider that a company has reached its heights by working on these
strengths.

On the contrary, the W represents the weaknesses that a company possesses. Although no
business wants to talk about its weaknesses, identifying them provides an opportunity for the
company to overcome them and turn them into their strengths.

Opportunities are the chances available for a company to maximize its market share, whereas
threats represent the factors that could act as a hurdle in a company’s growth in the future.

Moreover, the strengths and weaknesses make up internal factors. This is because these factors
can actually be influenced and hence controlled by the company under consideration. Threats
and opportunities, on the other hand, make up external factors; for the exact opposing reason i.e.
they cannot be controlled.
All this might seem a little complicated but actually, it’s very simple. Some of the SWOT
analysis examples will make the picture much clearer.

What strengths does Apple possess? 

In this section, we will discuss the factors that helped Apple become a tech giant. Strengths are
the factors due to which companies grow and capture their market share. Following we have
discussed some of the key strengths of Apple, which helped Apple in becoming one of the
largest tech companies.

Huge Market Share

For any company, the number of actual and potential buyers matters. In terms of Apple, it has a
huge market. It was recorded that more than 1.8 billion Apple devices were in use in 2022.

Technologically Advanced
Apple has always been ahead of its competitors in terms of technology. Features like Airdrop
and Siri are only two of the most prominent ones that have always attracted buyers.

If we recall, the concept of a good quality camera in a mobile phone was initiated by Apple and
later adopted by its competitors. Such advancement in technology has always given an edge to
Apple over its competitors.

Diverse Product Range

Diversification is essential for any company to grow by filling the market gap. Over the years,
Apple has worked on its product range.

Although initially, its products were very specific and only computer-related, later they
diversified their product range by including iPods, iPhones, Macbooks, Desktops, Smartwatches,
and much more.

Besides smart devices, Apple also has an extensive product range of electronic accessories such
as wireless headphones, Airtags , iPhone cases, etc.

Increase in Apple Services

Apple has put its focus on enhancing its services. In the first quarter of 2022, Apple generated
almost 19 percent of its revenue by providing its services.
This thick contribution of services to the annual revenue was only possible because Apple
launched many services in the recent past that millions of people availed of, such as AppleCare,
Apple Card, Apple TV+, etc.

Design and quality

Apple is known for its innovative product designs that are simple yet classy. If we look at the
example of an iPhone, It always has such a simple structure with no make-over, but they always
carry that grace. And have become an epitome of status and class.

Quality is one thing that many people are not willing to compromise on, and Apple knows how
to satisfy its users in terms of quality. Apple makes sure that they produce a high-quality product
using modern and innovative techniques. This is why you will never see an Apple user
complaining about its quality.

For that very reason, there are many apple service programs to ensure high quality and customer
satisfaction.

Customer loyalty
Any company which has a loyal customer base is considered very lucky. Unfortunately, Apple is
one of those companies which has loyal customers. As a result, Apple users are often labeled
with “Once an Apple user, Always an Apple user” which is correct in most cases.

There are many reasons why Apple users are loyal to their brand, but one of the primary reasons
Apple users don’t switch from this brand is that Apple provides privacy features to a great
extent, making its users feel more secure.

What are Apple’s weaknesses?

No company is perfect; even the most successful companies run on a mix of strengths and
weaknesses. Even after having all the strengths that we have discussed earlier, like any other
company Apple also has some weaknesses.

Not enough digital advertising and marketing

Unlike most top brands and companies, Apple spends much less on its digital advertising. If you
give it a thought, you’d be shocked to realize that there are almost no Tv advertisements, social
media advertisements of Apple compared to other brands such as Samsung and Pepsi, yet they
manage to achieve record sales each year.

In 2019 Apple’s digital advertisement expenditure decreased up to 68% compared to the digital

advertisement expenditure In 2018.
Imagine If they were adequately doing marketing their products through digital and social media,
they could generate more revenue.

Limited designs in phones

If we recall the design of the very first iPhone and iPhone 8, there was hardly any difference in
its appearance except for size and thickness. They were simple-looking round-edged phones with
a home button placed in the center. 

Although Apple upgrades each model of their iPhone by adding new features to them, many
iPhone users have a problem with the lack of variety when it comes to the design of the iPhone.

High prices of products

Apple products may be the best in the market, but not everyone can afford them. Prices set by
Apple are very much inflated, due to which many potential costumes switch to its substitutes.

Allegations of tracking the exact location of users

Apple was accused of revealing the exact location of its users with the help of its tracking
mechanisms. Although it was never proved that Apple was misusing the information of its users,
to counter this allegation, Apple introduced an option for its users to keep their location private.

This allegation brought bad publicity to the company and made it difficult for the users to trust
Apple again.

Products only compatible with Apple’s software

Whenever people buy an Apple device, they have to make their Apple id. Once that id is made,
their device will only work through that Apple id.

Apple products are not compatible with any other software, which inconveniences the users.

Reliance on iPhone
The majority of the revenue earned by Apple is through the sales of the iPhone. Although Apple
has worked on diversifying products, it still heavily relies on the iPhone for revenue generation.

This reliance can result in serious trouble for Apple if people stop buying iPhones for some
reason.

Opportunities that can lead to Apple’s growth in the future

Any company needs to avail of the opportunities present today to benefit from them in the future.
Therefore, gaining benefits from external factors can help Apple grow in the future.

Development of AI
As the world is experiencing a new wave of artificial intelligence, Apple can benefit from the
recent developments in artificial intelligence to make its products more user-friendly. Though
there are many advancements made in this avenue, still there’s a lot to do.

Production of eco-friendly products

Global warming and climate change are the top two most significant challenges faced by the
world currently, and a lot of work is being done to mitigate them.

The production of eco-friendly products will not only benefit the environment. Still, it will
portray a positive image of the company, which can help in increasing the sales of Apple
products in the future.

Use of virtual reality

Although virtual reality is usually associated with entertainment purposes, Apple can use virtual
reality for its marketing purposes. For example, Apple can hold its events virtually to get people
more involved.

Dependence on technology
Over the years, the reliance on technology has increased across the globe. As a result, the
number of people using smart devices increases day by day, providing Apple with an excellent
opportunity to increase its market share by expanding its customer base.

Globalization
The world has now transformed into a global village. Globalization and improved means of
communication and transportation enable customers to purchase and receive products directly
from reputable companies concisely. This provides an opportunity for Apple to make customers
across the globe and increase their revenue.

What are the threats faced by Apple?

Threats always make companies worry about their future. Any company should take no threat
lightly, and they should do work to overcome these threats. Unfortunately, Apple also faces
several threats that make its future uncertain.
Russia-Ukraine War
The war between Russia and Ukraine is negatively impacting many companies across the globe.
Similarly, Apple will also incur economic losses after abandoning its operations in Russia.

Tariffs imposed by the US on China

The US has imposed high tariffs on China, due to which the cost of imports from China has
increased. This will increase Apple’s production cost, increasing the prices of its products.

Competition
Increasing competition is a worry for Apple as companies like Google, Huawei,
and Samsung give Apple a tough time with their upcoming technologically advanced products.
Therefore, Apple has to strive hard to remain the market leader in this challenging scenario.

Technological change
The world is experiencing technological change rapidly due to which existing technology gets
outdated very quickly. Therefore, to maintain its position in the market and stay relevant, Apple
has to adopt new trends and technology.

Outburst of Covid-19
Due to the Coronavirus outbreak in China, Apple faced significant disruption in its supply chain.
As a result, Apple had to bear heavy losses. One of the immediate losses which were incurred by
Apple was the loss of  $100 bn In the stock value due to the late launch of the iPhone.

Although currently, the situation seems in control, you never know. An increase in the Covid
cases in China can result in lockdowns again, making Apple suffer financially.

Apple SWOT analysis: Conclusion

This SWOT analysis provides a clear picture of the strengths and weaknesses of Apple and what
threats it has to face. Meanwhile, it also tells us about the present opportunities for Apple to avail
today for a better tomorrow.

According to this SWOT analysis, Apple is in a reasonably good position since the strengths and
opportunities outweigh the weaknesses and threats that the company faces.

After reading this article, now you know about Apple’s strengths, weaknesses, threats, and
opportunities, and you also know how to do a SWOT analysis. However, this SWOT analysis is
very informative but, at the same time, a little time-consuming. This SWOT analysis can also be
summarised in a tabular form if you are looking for it.

So with Apple, let’s think Different!