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Rising demand for tablets and smartphonesApple’s iPad and iPhone has a strong market and is growing day by day as market grows.Being a leader in the technology, Apple has a better opportunity to tap the growing market insmart technology then its competitors. An analysis done by IDC shows that 87% of theworldwide smart connected device market will be tablets and smartphone, with PCs (both
APPLE SWOT Analysis8desktop and laptop) being 13% of the market and18% of tablet sales will be to businesses,according to Forrester. Forrester forecasts tablet sales will rise from 122M in 2012 to 381M ayear by 2017. The following Forrester graphic from his post illustrates this trend. (ForesterResearch, Inc.2017)Creation of new product linesApple has the opportunity to explore new product lines. Its current product lines, like theiPhone, iPad and Mac, are very successful. Through further innovation, Apple can introduce newproduct lines such as iCar (an autonomous car), like what the firm has already done with theApple iWatch. Developing new product lines can support the company’s growth, despiteaggressive competition.Technological advancement
APPLE SWOT Analysis9Apple has long history of refining existing technology and has helped popularize a numberof technologies, which quicklybecame a common place for a wide range of users. Across theindustry, though, Apple doesn’t often invent new technologies itself, but uses of such technologyhas helped Apple to capture the smartphone market in no time and ultimately prompt competitorsto follow. Some examples are fingerprint sensors on phones, 3D touch, and touchscreen. Applehas the opportunity to continue to work on technology advancement in order to maintain theirleadership in the market.Apple also has other opportunities to growth and take market advantage such as:Apple carApple can develop their own anti-virus solutionProduct diversificationMergers, Acquisitions and MarketingTHREATS:External forces preventing a company from reaching its goalsIn this aspect of Apple’s SWOT analysis, the focus is on the threats from various sources,such as competitors. Threats can limit or reduce the financial performance of companies. InApple’s case, the following threats are the most significant:Aggressive competitionApple is facing more challenging competition in the mobile industries from competitors,partially due to the aggressiveness of the firms. Apple competes with Samsung, which also hasrapid innovation. This part of Apple’s SWOT analysis highlights the limiting effect of aggressive
APPLE SWOT Analysis10competition. Because of the hard competition from competitors like Samsung and Google, it isnecessary to have strong fundamentals for maintaining the competitive advantage.ImitationApple faces the threat of imitation of design. This threat is significant because of the largenumber of firms that can easily imitate Apple’s products. Some local and regional firms couldpartially imitate Apple’s product design.Rising labor and manufacturing costLabor and manufacturing costs rising in Apple plants, such as in their Foxconn factory inChina, can reduce profit margins or push selling prices even higher. Company’s financialperformance could be impacted due to higher cost. Thus, Apple must take appropriate action toprevent or overcome these threats.