Apple Company Inc. SWOT Analysis


Apple is a technology company based in Cupertino, California in the United States. The leading technological company was started in 1976 by Steve Jobs and Steve Wozniak. The founder later left the firm and is now run by Tim Cook as the CEO. As of the year 2020, the organization had 147, 000 employees. In the same year, Apple’s market capitalization was $1.86 billion, and where annual revenue was $274.51 billion with $57.41 billion as profit (Business Strategy Hub, 2021). Apple’s products such as computers, software, phones, watches, and tablets have placed the company at the top of the industry. Broad product differentiation as the firm’s main strategic plan has helped it stand out in the market. Furthermore, its innovative goal which acts as the heart of the organization contributed to making the most selling products like iPhones. For example, Apple made $137billion out of $274billion in total revenue from sales of iPhones (Business Strategy Hub, 2021). The company however faces stiff competition from the market firms including Microsoft, Google, Samsung, and Dell. Thus, although Apple Company faces tough competition from the technological industry, it is strategically focused and on the right track.

SWOT Analysis


The strengths of an organization are internal features that it uses to effectively achieve its objectives. Apple has many capabilities and resources that when utilized help it to stay competitive and successful. One of the strengths is that Apple has innovative products and a diversified portfolio (Dudovskiy, 2021). The company is innovative in the development of software hardware and other products thus staying at the top of the technological industry. Through product differentiation, Apple Inc. makes its products unique in terms of models and way of use. Some of the most unique products are iPhone, Mac, and watches which are developed with high innovation. For example, a YouTube video shows the uniqueness of an iPhone 12 pro, especially in the photo editing capabilities that enable the user to visualize images (Apple, 2020). The organization also has a range of products and services in its portfolio. Unlike many other firms that focus on developing one product, Apple makes several products including computers, watches, phones, accessories, and cloud technology. The technological firm has also invented music, content, and video streaming platforms.

Apple has currently launched new products while others wait to launch. The ability to introduce new inventions to the market from time to time is internal strength. Some of the Apple applications recently launched and those yet to be enhanced include iTunes, Apple TV+, Apple Music, and Apple card (Business Strategy Hub, 2021). As the brand continues to invent new products so does its growth keep rising? Another Apple strength is the positive reputation of the brand across the world. Apple is a well-established brand and is known internationally as it has customers from most countries. The products’ unique design, advanced functions, and high prices which match the quality earn the brand a reputation. Indeed, Dudovskiy (2021) mentions that Apple was third-ranked as the most valuable brand in 2020. Apple also has many stores internationally thus giving a positive customer experience and interaction.


High prices are one of the major company’s weaknesses because they make the products be considered a luxury. The premium prices fixed on Apple’s products targets medium and high-income consumers thus leaving low-income earners. The failure to include low-income earners in the target customers is a weakness (Demir, 2017). Another significant weakness is limited promotions and advertisements done by the company. Apple depends on already established customers to purchase their newly invented launched products. Consequently, it barely spends on promotions and advertisements which when done could lead to increased sales.

Apple products are incompatible with other devices and that is a weakness. When customers buy Apple devices, they have to acquire other company products for compatibility. For example, an iPhone cannot be charged with an android phone charger due to incompatibility. The act of entering a market of non-competency is considered another weakness. The company has recently entered into the video, music, and content streaming field with little or no experience (Dudovskiy, 2021). Apple is now competing with field geniuses like Netflix, Paypal for Apple cards, and Disney. These are companies with high experience and competency which Apple lacks, thus, the market entry is likely to result in a huge failure.


Apple has been dominating the tech industry by recording high customer growth. The ability to provide high-quality and advanced tech products offers positive customer experiences. According to Dudovskiy (2021), Apple’s customer retention as of 2020 was approximately 92%. The firm highly relies on the internet to find and keep customers by offering a positive experience. Apple also has a team of highly qualified professionals, which is both a strength and an opportunity. The organization also experiences high employee retention thus increasing the product development team means increased growth. With an expanded team of top talents, Apple can continue to grow and develop new products.

The leading tech company has a low distribution network and an opportunity to expand it. The small network prevents the firm from reaching many customers so expansion of such would lead to increased sales and revenue. The company also has an unexploited chance to contribute to sustaining the environment (Dudovskiy, 2021). It has not yet been invented in green technology hence has the opportunity to venture into the field. Apple is yet to expand its venture in wearables which are expected to dominate the world soon. Other opportunities include utilizing artificial intelligence and availing of self-drive software technologies.


Apple is experiencing increased competition from brands such as Dell, Samsung, and Google in various markets. Android, this is where all its phone rivals are has captured 72.23% of the market leaving Apple with only 24.55% (Demir, 2017). Another threat is rapid technological changes which many companies experience difficulties coping with. Almost every day, technology is advanced and new changes required application. The company has now yet announced any development for the application of the most recent tech changes.

Apple may be earning huge revenue but with the continued strengthening of the dollar, it reduces its value. The company earns most of its revenue from sales made out of the U.S. The stronger the dollar gets the weaker the returns of the exchanges made by the firm. COVID-19 also posed a threat to the total revenues of Apple Company. In 2020, the expected profits from all sales were ranging from $63 to $67 billion but only $57 billion was earned (Dudovskiy, 2021). The company, like all others, has experienced reduced business due to the economic effect of Coronavirus.


The SWOT Analysis shows that Apple Inc. is in a comfortable strategic position in the technology industry. By relying on strengths and opportunities, the company can utilize its resources to grow even more and earn increased revenue. It can also use its weaknesses and threats to improve and come up with strategies to stay competitive. All in all, despite the ongoing health crisis, Apple Inc. is doing well financially.


Apple. (2020). This is iPhone 12 Pro — Apple [Video]. YouTube.

Business Strategy Hub. (2021). Apple SWOT 2020 | SWOT analysis of Apple. Web.

Demir, A. (2017). Apple is trying to resolve many of its marketing and management problems. PressAcademia Procedia, 4(1), 143-147. Web.

Dudovskiy, J. (2021). Apple business strategy: A brief overview. Research-Methodology. Web.

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