Apple Incorporation: The SWOT Analysis


Apple Incorporation is a multinational technological company founded in 1976 by Steve Wozniak and Steve Jobs; it focuses on creating computer software, servers, personal computers, and consumer electronics. The main product lines the organization majors in are the Macintosh computer, iPad tablet computer, and iPhone smartphone line. The company has its headquarters in Cupertino, California, and its current chief executive officer (CEO) is Timothy Donald Cook. It is the world’s second-largest phone manufacturing company; additionally, it is the largest IT company. The company’s mission is to bring the best personal computing experience. Its vision is to provide customers with non-intimidating and user-friendly technology at an affordable price. Apple faces different problems internally and externally hence the need for a SWOT analysis that acts as a strategic management decision-making tool.

SWOT Analysis

SWOT Analysis Diagram

  • Brand Identity
  • Highly valued brand
  • Leading innovation and technology
  • Brand of choice
  • Competent Research
  • Top-quality experience for its customers
  • Premium prices
  • Different OS systems are not compatible
  • Highly dependent on iPhone and iPad
  • Expanding distribution network
  • Green technology
  • Smart wearable technological products
  • Offer self-driving car technology
  • Expand music streaming services
  • Intense competition
  • Entering highly competitive markets
  • Issue of counterfeits

Strengths and Weaknesses


Apple Incorporation’s internal factors that affect its growth fall under the strengths and weakness category. The company’s first strength is its brand identity; Interbrand has ranked Apple first for the ninth consecutive year with a value of 408 billion dollars (Yie et al., 2021). Apple can introduce new products which will eventually sell due to its strong brand image. Target markets are middle and high-income individuals; the poor cannot afford them. The brand had a market capitalization of 2.23 trillion dollars in the 2021 financial year, making it an enormous corporation (Yie et al., 2021). Apple has funds that enable it to research and invest in the best technologies that no other organization uses.

Trademarks and Patents

Highly efficient and steadfast technological devices are developed and produced by Apple company. The brand was also among the first organizations to present innovative gadgets such as iPads and iPhones. Rapid innovations enable the brand to keep up with the latest technology providing a competitive advantage. Apple uses different operating systems (OS); furthermore, they are not compatible with any other systems (Prakruthi & Ramu, 2018). Apple has registered trademarks such as the logo and macOS, thus ensuring maximum security. The firm has many patents because of the vast amount of technological merchandise they develop to outdo its rivals. Both trademark and copyright protect the intellectual properties of the company.

Software Systems

Apple is an iconic global company, among the most reliable organizations regarding intelligent technology devices and personalized computers. The firm can develop and design its services, applications, software, and hardware. Current hardware products include iPad, Apple TV, Mac computers, and iPhone; the software includes Ios, iPadOS, macOS, iWork, and iMovie (Greg, 2020). Services offered include Apple Arcade, Apple News+, and iCloud (Prakruthi & Ramu, 2018). The outstanding innovations create a competitive advantage no organization can match, thus giving them an upper hand in the industry.

Opportunities and Threats

Market trend

The external factors influencing a company’s success are always identified under the opportunities and threats in a SWOT analysis. Apple can adopt new technology to capture more clients further and dominate the industry. The brand can make plans and offer self-driving software car technology as the demand is very high. Apple has the expertise to make it possible instead of making actual driverless cars like Tesla. Music streaming services must be expanded and accessible all over (Greg, 2020). The rapid economic growth and youthful population offer the opportunity for expansion.

Economic Trend

Apple continues to face threats from third-world countries, thus affecting its economic growth. Many counterfeit products are sold while illegally utilizing the brand image. The fake products are sold at a similar price as the original. Potential customers that acquire the merchandise may end up believing the items are of low quality. With negative reviews, the company may face bad publicity, which is terrible for business. The brand also faces competition from major rivals such as Samsung and Google. Apple has to introduce new technologies or lower its product prices to capitalize on sales and stay ahead of the competition.


The demographics for Apple products vary depending on the device. Apple iPhones are most popular among young adults aged 16 to 24 (Addison & Adelaide, 2022). About 2 billion people use Apple devices worldwide, with over three-quarters being iPhones (Addison & Adelaide, 2022). Android users are the majority accounting for about 75 percent of global smartphones (Addison & Adelaide, 2022). High competition is a possible threat that needs proper planning to overcome. The brand can promote growth through the expansion of its allocation chain. An expansion will mean it reaches additional customers worldwide who have ranging demographics.


Apple is continuously growing into news services to maximize profits. Hardware products require materials made from plastic and glass, which are not degrading. The company is yet to introduce merchandise made from green technology. Eco-friendly and sustainable technology is yet to be attained by the brand; as a result, it causes some environmental pollution. Market penetration has been an area of concern for Apple Incorporation. The main competitors use Android software to create their gadgets and have captured a significant population compared to the less than 30 percent dominated by Apple users (Yie et al., 2021). Opportunities and threats can be used to analyze the external market and identify the regulations that have not been met.


Apple Incorporation has retained its competitive advantage by providing quality and unique products. High finances enable it to invest in research to produce appealing gadgets for clients. The organization has maximized its strengths to remain productive and at the top of the chain. Due to brand value and identity, it has loyal customers who purchase new merchandise as soon as it is launched. Android users heavily feel its weaknesses; Apple product consumers are comfortable with the uniqueness. The company’s success heavily relies on this analysis as it provides necessary information for better planning. Identifying weaknesses and threats paves the way for introducing appropriate strategies to eradicate them. Strengths and opportunities are what Apple should focus on to be economically successful.


Addison, M., & Adelaide, V. (2022). Brand development and marketing strategies in the USA: A case of Apple Incorporation. Journal of Marketing and Communication, 5(1), 1–8.

Greg, R. (2020). Strategic review of Apple Incorporation marketing in the United States of America. Journal of Marketing and Communication, 3(2), 47–83.

Prakruthi, A., & Ramu, M. (2018). A study on SWOT analysis with special reference to the Apple company. International Journal of Pure and Applied Mathematics, 119(17), 181–192.

Yie, E., Zhi, E., & Ping, T. S. (2021). A critical analysis of internal and external environment: Case study of Apple Incorporation. Journal of International Business and Management, 4(10), 01–14.

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