Introduction
Apple Inc. is an American multinational technology business that produces consumer devices and software. A wide range of technological product areas are represented by Apple. As a result, Apple is exposed to fierce competition from numerous large corporations. This paper will give a detailed description of Apple Inc., as well as its competitors, as well as provide a thorough SWOT analysis of the company.
Industry Placement and Core Strengths
As mentioned above, Apple is a company that works primarily in consumer technology. Apple develops, markets, and supports a variety of consumer electronics. More recently, Apple has focused on the research and development of new technology products, such as the iPhone (Chen et al., 2023).
Apple also provides online hardware and software stores, such as iTunes. The Mac line of personal computers, the iPod line of portable media players, and the iPhone, the company’s best-selling smartphone, are its most well-known hardware products. For software, Apple is known for its Mac OS operating system (Chen et al., 2023). Thus, Apple works in consumer hardware and software and currently excels in this sphere.
Competitive Landscape
In terms of competition, Apple has several close rivals. There are several rivals in the mobile device industry, including Huawei, Samsung, and OPPO. Those are its competition because they exist in the same market and provide similar products. These companies make mobile phones in a cheaper price range, thus driving more price-conscious buyers away from Apple, as Apple’s devices have proven to be too costly for some consumers (Chen et al., 2023). Thus, the primary competition for Apple in the mobile phone market is Samsung, Huawei, and OPPO.
Strengths
Beginning the SWOT analysis of Apple, it is necessary to settle with the internal strengths of the company. Apple has created a large and loyal customer base that is constantly expanding. Thus, every new product is also eagerly sought after and bought (Chen et al., 2023).
Moreover, Apple Inc. has always been a market leader in terms of design and innovation. Due to the easy integration between each Apple device, customers are more inclined to purchase many Apple items (Chen et al., 2023). Thus, the two internal strengths of Apple are its large and loyal customer base as well as its market leadership in terms of design and innovation.
Weaknesses
However, Apple also does possess weaknesses in its business model. While Apple does have an edge in technology over its competition, its current spending on innovation is lacking. Only 2.2% of Apple’s revenues go to R&D, while its competition spends 10% on average (Chen et al., 2023).
Moreover, new customers find switching to Apple challenging due to incompatibility with other systems. Those who own Apple products must buy Apple products to keep utilizing them (Chen et al., 2023). Hence, Apple’s weaknesses include its low spending on innovations and the incompatibility of its devices with other systems.
Opportunities
In terms of external factors, Apple has some opportunities in front of it. Firstly, the market for consumer electronics is growing steadily and is forecasted to keep doing so (Chen et al., 2023). With a sound marketing plan, Apple will have a tremendous chance to increase its market share (Chen et al., 2023).
Secondly, Apple’s solid consumer and financial foundation supports its future growth in the self-driving car business. Currently, the company is seeking partners to create autonomous vehicles to compete in the automotive and mobility industries (Chen et al., 2023). Thus, two opportunities for Apple are the growing market for electronic devices and the emerging market for self-driving cars.
Threats
There are some external threats to the growth of Apple Inc. as well. Apple’s international markets may be unpredictable as a result of political shifts in the world. For instance, the tensions between China and the United States resulted in some Chinese consumers rejecting Apple products (Chen et al., 2023).
Another threat for Apple is the larger market of cheap knock-offs of the company’s products. Such items will easily capture the low-end market and cause losses for Apple because their prices are lower than those of original products (Chen et al., 2023). Hence, the threats to Apple include changes in world politics and the prevalence of knock-offs of their products.
The Most Concerning Competitor
In terms of competition, Apple’s biggest rival in terms of market share is Samsung. While it does offer similar products, it does so in a cheaper price range. Moreover, Samsung’s smartphones work on Android, which gives it more compatibility with third-party hardware and software, giving it an edge over Apple. Thus, Samsung is the competitor that Apple should watch closely and counteract if needed.
Conclusion
To summarize, has several positive and negative features, both internally and externally. It is currently the market leader in design and technology, with a large and loyal customer base. However, its innovation spending is lacking, and its devices have a low level of compatibility with other devices.
Furthermore, changes in world politics and cheap knock-offs of Apple products may threaten its market share. Nevertheless, the growing electronic devices market and the emerging self-driving cars market serve as opportunities for the company. Thus, if those factors are properly viewed and utilized, Apple will be able to successfully hold and expand its position in the market.
Reference
Chen, Z., Li, Y., Huang, R. (2023). An Investigation of the Investment Projects for Apple’s Future Development Based on SWOT Analysis and Fisher Model. Proceedings of the 4th International Conference on Economic Management and Model Engineering, ICEMME. Web.