Apple Inc. SWOT Analysis

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It is certain that specific corporations have entirely changed the industries where they operate through innovative ideas, prolific leadership, and nuances visionary objectives. However, Apple Inc. is undoubtedly the company that is the most well-known for shaping technological advancement and, subsequently, the strategies that other similar companies apply to satisfy consumer demand. Apple became a global sensation decades ago and still remains one of the most well-known and profitable corporations in the world with a cult following, a very distinctive branding model, and solid products that strike interest in consumers. However, there are specific difficulties that Apple is to face currently.

In order for the challenges to be addressed and balanced out with the factors that elevate the organization over competitors, it is essential to conduct a SWOT analysis and determine the strength, weaknesses, opportunities, and threats. Thus, both the internal organizational environment and the external ones are to be analyzed and structured in order for challenges and ways to combat them to be identified. Based on the examination, Apple Inc. is in a favorable position in terms of value, global recognition, and branding, as well as innovation and opportunities for implementing new technology. However, the internal environment suffers because of the reliance of a lack of advertisement and software incompatibility, while the external one is prone to competition, risks of low market penetration, and a possible lowering of demand.


Since Apple Inc. is one of the most profitable and recognizable brands in the world, it is undoubtedly prolific in terms of business strategies and new implementations. Thus, the organization’s multiple strengths facilitate the high demand and the growing consumer base that is attracted to Apple products and is willing to invest in them. The strength that is prominent in terms of Apple as an entity is the strong branding. The company is often associated with something innovative, new, and different, which is the reason why people are drawn to it. Moreover, it is essential to mention the high market value ($2T), which makes Apple an essential threat to competitors and a significant figure in the technological industry (Li, 2021). Being the world’s most valuable corporation is certainly a major strength that correlates with efficient internal environmental frameworks that are being applied.

Another aspect of the organization that illustrates its strong position in the various services and products it sells. The iPhone is the product that has facilitated the most income and has increased the popularity of the brand since it makes up for the 2/3 revenue of the company (Thao & Tsanthaiwo, 2017). However, it is vital to refer to the other products and services offered by Apple, including computers, smartwatches, apps, services, and multiple other options. Having a diversified income allows the company to have multiple sources of possible revenue and, perhaps, create another viral product in the future that will compete with the iPhone.

Last but not least, the company’s aim to invest in innovation is one of the biggest strengths that can be identified within the SWOT analysis. Apple was the first to introduce user-friendly devices that look stylish, are easy to use, and allow consumers to customize them based on their preferences. This approach has been applied by all the competitors, yet the first and the most prominent illustration of customer-friendly products in terms of devices remains Apple.


The internal environment of Apple Inc. is not only manifested through the company’s multiple strengths but also the weaknesses that may compromise profitability, production, and popularity. First and foremost, it is essential to highlight that Apple offers products that are innovative and unique, which often correlates with a higher price. While the market is full of companies offering devices for similar costs, they also have offers that more consumers can afford. On the other hand, Apple’s most popular product, the iPhone, is the only smartphone consumers can purchase, the only possible difference being the storage capacity, model, and color.

However, the relatively low choice is a part of the unique concept of Apple Inc, which is a strength. At the same time, it does limit consumers in terms of opting for lower-priced goods, which is a weakness. The corporation’s concept also involves promoting Apple products while disregarding other commonly-used systems and software. Thus, the devices are not compatible with certain software that consumers may be used to or prefer over iOS. This may create circumstances in which switching to an Apple device is inconvenient, ultimately discouraging consumers from supporting the brand through purchases.

A concept that is also predominantly used by Apple compared to competitors is relying on the branding and the unique overview of their products. This may increase customer desire to opt for this particular brand, yet the relatively insignificant marketing strategies aimed to promote it may become inefficient due to the fast technological development of competitors. Apple does not invest much of its income in regular marketing campaigns, choosing to focus on the cultural branding of the organization. This may not be particularly efficient since other technological corporations are able to provide services and products that are just as innovative yet also advertise them. Thus, the marketing strategy to rely on the nuanced idea of Apple may not be particularly efficient during current times because of the high competition and the need for new implementations.


A brand that is already the most valuable worldwide is certainly focused on the opportunities to maintain such a high position on the market. Moreover, the external environment of the industry where it operates facilitates such opportunities due to the focus on development, consumer-centered technology, and intelligent automatization. Apple is one of the most prolific in this area, and the environment being beneficial in this particular area is an opportunity for the brand to capitalize on it. Investment in artificial intelligence, partnerships with self-driving car initiatives, and other potentially revolutionary collaborations can become critical in establishing the future of the company.

Another opportunity is focusing on sustainability, an area of interest that customers are willing to support. Apple is already preoccupied with making specific changes when it comes to more eco-friendly practices (Environmental Progress Report, 2020). However, as the industry itself becomes more aware of possible environmental damage and the seriousness of the issues, more opportunities occur. Last but not least, the market is portrayed through an increase in GDPs, which means consumers are more potent in regards to investing in high-quality products. Thus, the more the middle class increases the paying power, the more opportunities for Apple to maintain the status of the most valuable company worldwide as the consumer base increases.


As mentioned prior, technological advancement has facilitated Apple to become such a success. At the same time, this implies that other companies can access the same new opportunities, which is a threat. Thus, the unique design and features offered by the brand will possibly be offered at a lower price by competitors. This is especially critical due to the rising number of consumers of Android devices (Zhang, 2018). Moreover, Samsung, Apple’s competitor, offers products that are comparable features-wise yet often more affordable and promoted through marketing campaigns that Apple does not invest in (Raketić & Rašević, 2017).

Another possible threat is the brand’s visionary model that has become less prominent. While the products are being updated early, nuanced ideas and major changes in design are less noticeable, which is also a threat due to the high standards that customers have in terms of devices. Thus, the increasing market and the multiple available options that are comparable to Apple products create circumstances under which the brand is struggling to keep up and maintain the same popularity.


The SWOT analysis has shown that while being the most valuable corporation globally, Apple faces certain weaknesses in the internal environment and threats in the external one. The examination has revealed that Apple’s recognition, innovative agenda, and various sources of income are the aspects that make the brand successful. However, the identification of the weaknesses reveals the lack of advertisement, high prices, and software incompatibility are the factors that mitigate extra profit the corporation may have earned. The external environment can be efficient in terms of the focus on innovation, a potential increase of paying power for the middle class, and the focus on sustainability. On the other hand, the threats include high competition, the inability to lower prices similarly to other brands, and the high market penetration of Android products.


Environmental Progress Report. Apple. (2020). Web.

Li, Y. (2021). Apple Inc.. analysis and forecast evaluation. Proceedings of Business and Economic Studies, 4(4), 71–78. Web.

Raketić, O., & Rašević, I. (2017). The comparative analysis of competitiveness between Samsung and Apple. Serbian Journal of Engineering Management, 2(2), 48–55. Web.

Thao, T., & Tsanthaiwo, S. (2017). Apple Inc.. in the years to come. SSRN Electronic Journal. Web.

Zhang, Q. (2018). Research on Apple Inc’s current developing conditions. Open Journal of Business and Management, 06(01), 39–46. Web.

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