Overview
The Apple Company was founded in 1976 by the late Steve Jobs and his colleague Steve Wozniak- “Woz.They introduced their first system, owing to their goal which was to create an inexpensive and simple to use computer, on the same year. Their system incorporated an encased circuit board known as Apple I, which sold for approximately $700 in local stores. Jobs and Woz had gained popularity in the computing revolution when the Apple II and Mac were introduced.
However, Steve Jobs passed on. Tim Cook was appointed as the new C.E.O of the company. Joining the company in 1998 and working closely with Jobs for over thirteen years, as some of the factors that led that led to his appointment. It is a company that has continued to come up with new inventions in the technological world and most customers are running for their products. What is going on?
Wall Street’s Finest was disappointed by Apple’s quarterly earnings. It was noted that the company silenced the loss in iPhone sales by claiming that the customers were waiting early for the iPhone 4S. There was a different pattern noted in its earnings; retail stores increase by 1% yearly, profit decline of 26%, and only 4% of new customers to retail stores.
However, from December 2009 to the June 2010 quarter, there was a retail increase from 51 million to 61 million, after the new iPhone began to sell. There was a drop in the number of new visits, from December 2010 to June 2011, by two million. This indicates that something was clearly not going well.
SWOT Analysis
These are the strengths, weaknesses, opportunities, and threats associated with the Apple Company. The SWOT analysis is crucial in placing the company back to track and increase its potential. It also addresses various risks and threats that hinder the development of the company. The company’s position is also strengthened by the fact that it enjoys financial liquidity, which can be used to expand the company and conduct more research into new products.
Strengths
The success of Apple Company is boosted by the large sale of iPod music players, Macintosh computers and the notebooks. Apple has a good IT brands and loyal enthusiastic customers that advocate for its products. Economies of scale, as well as developing a good name for the company in terms of corporate image are major strengths.
Weaknesses
Apple iPod Nano has been reported to have a faulty screen. The earlier iPods were reported to have faulty batteries. In 2005, Apple announced that it would stop chip suppliers by the known IBM Company. This would confuse customers, who may in return terminate their loyalty to the company. The company is facing increasing competition, as rivals such as Samsung and other phone makers are trying to eat into the company’s market share.
PEST Analysis- Stands for political, economical, social and technological factors that influence the results of a company.
Opportunities
Apple has the opportunity to enable the iTunes into a mobile phone format. It could also earn revenue from subscriptions to watching downloadable radio shows to iPods and music players.
Threats
The popularity and demand of iPod and will be affected in case of economic alteration. High taxes may work against the company since they would have to increase their prices and this may lead to a lower the number of clients noted.