APPLE INC.
SWOT AND PESTLE ANALYSIS
NINAD G. JAPE
INTRODUCTION
• Apple is considered as the world’s most notable and
recognisable brand for electronic devices.
• Co-founded by Steve Jobs and Steve Wozniak
• World’s largest information technology company in
terms of revenue
• World’s largest technology company in total assets
• World’s second largest mobile phone manufacturer with
115,000 employees.
COMPANY OVERVIEW
Industry Served Consumer electronics, computer hardware, computer software and online services
Headquarter Apple Campus, Cupertino, California, U.S.
Area Served Worldwide
Revenue $231.28 Billion (2015)
Current CEO Timothy Donald ‘Tim’ Cook
Samsung Electronics Co. Ltd., Google Inc., Cisco Systems Inc., Hewlett-Packard
Competitors
Company, Lenovo Group Limited, Sony Corporations
iPhone, iPod, iPad, Mac, Apple TV, software applications system iOS, OS X
operating system, portable digital music players, iCloud and its accessories,
Products
applications like App Store, iTunes Store, iBook Store and Mac App Store and
many more
Website www.apple.com
SWOT Analysis
SWOT is an acronym for
Strengths
Weaknesses
Opportunities SWOT
Threats
The purpose of SWOT analysis is to enhance the organisation’s
strengths, excludes its weaknesses, pursue opportunities and
avoid potential threats.
STRENGTHS WEAKNESSES
• Leading innovators among
electronics brands • High Price
• High brand recognition • Incompatibility of different
OS
• iTunes Music Store is a SW • Dependent on iPhone and
excellent source of revenue,
iPad
especially with the iPod and the
accessibility on Windows
platform • Limited direct sales
locations
• Apple Computer is expert in
developing own software and
hardware
• High quality customer
experience
OPPORTUNITIES THREATS
• Antivirus Solution • Android OS
• Downloadable music • Downloadable music
OT
• Laptop market • Windows 10
• Apple Pay • Convertible Laptops
PESTLE Analysis
PESTLE is mainly an acronym of six factors which are
Political
Economic
Social
PESTLE
Technological
Legal
Environmental
PESTLE analysis is used to analyse and monitor the
macro-environmental (external marketing environmental)
factors that have an impact on the company.
POLITICAL ECONOMICAL
• More than half of sales of
• Customers spend less on
their products come from
Apple products as they are
countries other than
expensive as compared to
America.
their competitors.
PE
• Apple is heavily dependent
• Europe’s economic
on lower cost manufacturing
difficulties and fall in Pound
in China.
led to decrease in sales of
Apple products in Europe
• The cost of finding
alternatives.
• Increased labour cost in
China affected the prices of
• Bad political relations
Apple products as most of
between U.S. and other
the parts are manufactured
countries may have bad
in China.
outcomes for the company.
SOCIAL TECHNOLOGICAL
• Technology has a short
• Apple products have marked
lifetime. Apple needs to
their presence on the
upgrade their products more
international market.
often to outdo their
ST competitors.
• Possessing Apple products
is considered as a status
• Apple need to provide more
symbol in many societies
safety solutions to tackle
which has increased the
growing menace of cyber
sales of Apple products.
crimes.
• The purchasing power of the
• Competitors are offering the
common have increased due
same products and services
to which people are shifting
at lower cost. So the apple
towards more luxurious
products are no longer
products.
unique.
LEGAL ENVIRONMENTAL
• Participant in various
• Expense of disposing of
lawsuits since it began
nonworking or used
operation.
electronic devices.
• In 2009, Nokia sued Apple
• Pollution and other
for infringement of Nokia’s
environmental concerns from
patent relating to wireless LE manufacturing facilities in
technology.
China.
• Apple has been in number of
• Climate change due to global
patent cases with
warming could disrupt
competitors like HTC,
Apple’s supply chain.
Samsung.
• China’s efforts to reduce
• Entered highly regulated
fossil fuel use could increase
financial sector by Apple
electricity rates and
Pay.
manufacturing costs for
Apple in that country.
CONCLUSION
• Given the company’s current leadership in the
industry, Apple is in a position to enjoy these
opportunities.
• The uniqueness in its design gives the company a
competitive advantage which reflects in their sales
and revenues.
• So it can be said that Apple will continue to be the
leader in the electronic industry in years to come.
THANK YOU…
