SWOT Analysis of iPhone Market

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The iPhone can be described as a multimedia Smartphone with internet connection that is designed and marketed by Apple Inc. Its main features that make it to be of world concern are the fact that it has a flush multi-touch screen and minimal hardware interface. Reports indicate that this is one area that the modern technology has definitely got it right in virtually every sector of life that is in one way or another connected to the internet. The iPhone business has been creating a series of tremendous buzz in the internet business ever since it was first introduced to the market. It includes a sleek gadget with a wide range of confiscated phones with among other things; touchscreen cameras, multimedia player as well as a web tool with wireless connectivity. For businesses and entrepreneurs as well as bloggers alike, the iPhone technology has provided a great tool that has created a powerful market niche, running to a large amount of monetary potential (Peter Burrows, 2006, p2).

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A SWOT Analysis is a strategic method of planning, used to evaluate the Strengths, Weaknesses, Opportunities and Threats in a business venture. It is an evaluation of the internal and external factors that can either be favorable or unfavorable to the realization of the business objectives (Hill, T. & R. Westbrook, 1997, 46). The niche market of iPhone is indeed marketable, but a conclusive case study is required to determine if the business is really lucrative or not. In this essay, findings will be given upon carrying out the SWOT Analysis of the iPhone market, that is; The Strengths, Weaknesses, Opportunities and the Threats that exist in this market. Relative scenarios will therefore be taken to help highlight the major concerns in the analysis… any nature of such a study of iPhone must be done keeping in mind that a majority of the world’s population believe that iPhone is simply the “ultimate iPod”, and they believe that the iPhone will surely live up to that title.

This new technology of iPhones has definitely proved that it will have a lasting impact on the industries of consumer electronics and that of communications. This essay therefore will provide a concise and actionable analysis of the impacts of the products on the market home networking services as well as that of broadband services. The SWOT Analysis will cover more particularly the role that these products will have to play in the evolution of other more confiscated products and the competition that they pose to cable operators, Telcos and other wireless providers. To be precise, it will discuss the opportunities and threats that the players in this field are faced with.

Overall View of the SWOT Analysis

First, is the description of the Analysis at a glance as given in (Scott Armstrong, 1982, 198-201): Strengths are those attributes of a business organization that will help it achieve its set objectives. Weaknesses, are those aspects that are harmful to that particular organization as it tries to work towards achieving its objectives. The external factors that are vital in achieving the objectives are the Opportunities and finally, the Threats, which are also the set of external factors which can damage the business performance. For this particular paper we only the opportunities and threats to the iPhone Market will be highlighted and identified to help in helping to determine the areas of development in the iPhone Market. Both opportunities and threats are external factors presented by the external environment to the market. To identify these factors in the iPhone market, a PEST or a PESTLE Analysis will have to be used (Scott, 1982 210).


According to the information on (www.vizuanswers.com) it was found out some of most compelling results on the future of iPhone business. Since the iPhone business is one that is still very new in the field and owing to its confiscated nature, only professional players have been able to get into it. This makes it less competitive or rather less flooded. The players that have had a hand in this line of business, for example the Apple Inc. have therefore had time to establish themselves and created a stable market niche (Honan, Mathew, 2007, p12). Another factor that is playing to such players’ advantage is the ability of their companies to identify market required for areas for consultancy other than HRM. With these opportunities put in place and a wide range of products introduced vis-à-vis the distribution channels, there will be definite expansion of the market position of iPhone to become a global success story. All the previous designs of iPhone Products have never been a letdown and if they continue with their successful innovation trend, then they stand high chances of not only keeping the wide customer base that they are currently enjoying, but also attract more loyal customers. If the players capitalize on these strengths, then they will experience a rapid growth (Dolan Brian, 2008). In the website cited above, it was reported that quite a good number of people are planning on getting rid of their iPod and radios and grab themselves an iPhone. At the Web. 2.0 Summit in San Francisco, the 451 Groups Raven Zachary made a f[presentation n the opportunities that lie in the market since its launch in the year 2007. He said that the iPhone has simply taken the work by storm and has led to a great number of growth opportunities. The degree of the technology has been their market’s greatest forward leap, bringing the mobile computing to a completely a new level. Everyone wants to work at their own convenience, the iPhone complete with the pocket-size devices poses a great plus to the market. It is more of a computer than a phone. another major advantage for the iPhone industry is the existence of well-known software companies in the business, taking the lead is the Mac Software Company which has experienced engineers and designers. This group of individuals has managed to more sophisticated applications that are no available on other phones.


With now every businessman looking focused on venturing into this lucrative business, the future might be a little bit more shaky and unpredictable if these people make good plans and invade the market. Since its introduction into the market, iPhone has managed to bring positive changes to the Smartphone market segment of the mobile phones. In less than two years, it managed to gain 18% of Smartphone’s market share in the world,…but this may change if more players flood the field (Grossman, Lev, 2007, 23-50).

Among other numerous threats, another one that is really shaking the lucrative invention on its bare foundation is that of SIM Lock Removal and Unblocking. It has always been a great assumption that the iPhones were safe from hackers, and most of the individuals that minded this security measure opted for iPhones. But, this was not to be for long, Hackers have found ways to unblock and sell stolen iPhones. Signing a bleak future for the much-publicized security system (Healey Jon, 2007). According to (Stephen Lawson, 2007), he says the price of the gadgets is the one which might result in an uncertain future in the market. He adds that the market for high-end smartphones is very small, because of the higher prices with the lowest price being $400. Not many are willing to spend that large amount of money on just one handheld slim device for a major reason of entertainment.

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The stiff competition from the iPhone Businesses dealer is another fact that should not go unattended. The major players are on legal and ideological battles to determine who emerges victorious in the business battle. Since mobile phones have become a great social necessity used both in communication and data transfer, a slight mistake in the iPhone design can bring the market down to its roots and in line with this ,is any possibility of a completely new product with more accessories introduced into the market. People will therefore shift to the other product if it seems to offer more advanced capabilities beyond the iPhone technology. further reports indicate that an overall measure is being taken by the marketers in the iPhone business to dubbed “price skimming strategy” to penetrate further the mobile market. This will enable them to strengthen their competitive barrier and expand their market share a bit faster.

Towards the end of the year 2008, there was fear that the market of the Apples iPhone wowing to what was referred to as the “Blackberry Storm”. Though the Storm did not do much, it is projected that it will eventually do some harm to the iPhone market. Blackberry phones are also touchscreens and they only need to have a good number of loyal customers and the damage will just be done to the iPhones. The ;introduction of another touchscreen will curtail the opportunities in the market and limit the market. Further reports revealing that Nokia iPhones are free to everyone is shocking, First it was rumored but now it has been confirmed that the iPhone can easily be hacked and unlocked by just a free software that is available online. If this continues it will greatly hurt the market (www.mydigitallife.info/.).

The iPhone stand a risk of being “obsolete” if another gadget is introduced in the market that has what it lucks like:- a Camera autofocus, third party application only the web-based ones, no official document editor, and also its safari browser does not support flash and java, meaning there is no way one can transfer any information from the PC via a USB Cable if not through an Apple extension. To add more uncertainties to the iPhone market’s bleak future it was also noted that the handset comes with no games included in it and worse of all there is no possibility of installing such an application. All these factors combined sound a warning alarm to the iPhone market.


For the iPhone Market to thrive and rise above all these huddles, their marketers have to put in place some measures to overcome the emerging obstacles posed by the above-mentioned threats, especially by utilizing the bank of opportunities that they have at their disposal. To side with the winning team, these marketers have to shun the fate of television and print advertising and embrace internet marketing. This will go a long way to expose their products to a large number of potential customers. In a nutshell, this essay is recommending to all the players in the iPhone market to desist from hibernating and work as a unit…Carriers need to collaborate, agencies need to have an open mind and for the retailers, they must launch new commercial sites.

The market should also strive to attract more non-AT&T (T) customers to switch carriers. The fact that they started on relatively high initial prices has enabled the players in the market to enjoy fat margins which can in turn be allocated to the recapture of up-front development cost.


Armstrong. M.(2006) “A handbook of Human Resource Management Practice” (10th edition): London, Kogan Page.

Cohen, Peter (2007). “Macworld Expo Keynote Live Update”. Macworld. 141-266.

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Brendan Kitts, Leif Edvinsson and Tord Beding (2000): “Crystallizing knowledge of historical company performance into interactive, query-able 3D Landscapes”. 34-51.

Dolan, Brian. (2008): “Time line of Apple “iPhone” Rumors (1999–Present)”.

Grossman, Lev (2007). “Invention Of the Year: The iPhone”. 23-50.

Healey, Jon (2007). “Hacking the iPhone”, Los Angeles Times.

Hill, T. & R. Westbrook (1997). “SWOT Analysis: It’s Time for a Product Recall”. Long Range Planning 30 (1): 46–52.

Honan, Mathew (2007). “Apple unveils iPhone”, Macworld. 11-13.

Menon, A. et al. (1999). “Antecedents and Consequences of Marketing Strategy Making”. Journal of Marketing. 63: 18–40.

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Peter Burrows. (2006): “Inside the iPhone Gray Market” Chapter 2-5.

Scott Armstrong (1982). “The Value of Formal Planning for Strategic Decisions”. Strategic Management Journal 3: 197–211.

Stephen Lawson. IDG News.

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