Apple Computers Inc is an American based multinational company which deals with consumer electronics goods and computer software’s. The Company well known hardware products are Macintosh Computer, iPod and iPhone. The software produts include Mac operating sytem,itunes and etc. Strengths • iTunes Music Store is a excellent source of revenue, especially with the iPod and the accessibility on Windows platform. • Apple Computer are expert in Developing own software and hardware. • Apple’s niche audience provides the company with some lagging from the direct price competition.
Giving a face-lift to desktop and notebook lines. • Web technology can be used to improve product awareness and sales. • Low debt—more maneuverable. • Apple Computers have good brand loyalty. • Partnership with Intel Computers in 2006 – Present. • Strong Research & Development Department. Weaknesses • Weak relationship with Intel and Microsoft. • Weak presence in business arena. • The product life cycle of Apple products are very small for that reasons revenues are more depend on launch of new products and services.
• Weak presence in markets other than education and publishing. Slow turn around on high demand products. • Apples market share is far behind from major competitor Microsoft. • In past the relationship between Steve jobs and employee were not good which result in reputation loss. Opportunities • Increase in worms and viruses on PCs so the antivirus solution can be developed by Apple • Large population (Gen X&Y) which are extremely individualistic and name brand conscious. • The ties of apple other companies are weak, Apple can develop good relationship for joint ventures • Downloadable music and MP3 players are highly marketable. The online sales of computer are increasing with rapid speed. • The laptop market growth is high; Apple Computers should focus to develop new models to cater the need of customers. Threats • Companies not seeing Apple as compatible with their software. • Apple facing strong competition from Dell, HP, Sony and Toshiba in laptop segment. • Downloading free music from other online source without paying cost is common it may impact the iTunes sales. • Apple software, Cell phone and hardware are expensive as compared to other competitors such as Dell. The long lasting recession may impact the sales of the company due to higher prices of the products and services • Microsoft launched Microsoft Vista, Windows 7 which is gaining market share. • The switching in technology is very fast. S Closed ecosystem gives total control of user experience from R&D to retail sale. Competitors have to fight for shelf-space and use whatever Microsoft OS and Intel reference designs come out, which leads to a lot of $499 junk laptops loaded with crapware, on a shelf at OfficeDepot where the main user purchase assistance is “LetmeseeifIhaveoneinthebackstillinthebox”.
Apple gets to set the specs in detail, and deliver to the customer through a controlled retail experience (Apple Store, Apple On-line Store) that helps them explain the value to the customer and extract a premium for that value. W Higher R&D costs than Dell etc. due to above. Slightly higher channel costs due to above. Can’t be distracted by every dead-end niche (headless iMac) though vocal minorities will attempt to draw Apple into these traps. Will never compete at the bottom “junk” end of the market and that will limit unit sales. O Phone, bootcamp, and virtualization can be re-entries into corporate sales if Apple stakes out a premium position rather than chasing the beige box market. iPhone is already phenomenally successful and can be leveraged to much higher levels with attention to corporate market and by developing multiple price points. Set top box market has a dominant player, Tivo, with many weaknesses that could be exploited by Apple TV 3. 0 or 4. 0. T Highly dependent on consumer purchases which are more likely to contract during slow economic periods compared to business purchases.
Record/Television/Movie content providers are key suppliers and act as if they were sole sources, giving them considerable power to impact Apple earnings. Slim chance that open source operating systems could gain a foothold in traditional markets but the possibility should be defended. Microsoft is the dominant PC operating system player and could stop market share loss with simple steps, such as refining existing XP platform rather than attempting to roll the market to Vista. Special interests may persuade Apple to provide OS X on non-Apple hardware.
This was a disaster in the OS 7/8 era, narrowly averted by withdrawing the licenses and purchasing the licensees. Apple will not be able to recover from the damage if it makes the same mistake again. STRENGTHS – Strong brand loyalty predicts return customers. It costs far less to keep an existing customer than to lure in a new one. – Simple, easy-to-use design and concise product range attract customers (recall the Paradox of Too Much Choice). WEAKNESSES Limited product range–Apple’s products are profitable. Even in the best of times, only one or two Windows OEMs earns a profit.
We now see even Microsoft forced to layoff workers to keep its head above water. We also see Dell take a major hit. Notice that we don’t even talk about HP-Compaq anymore? Low-end computers are cheaper for the customer to buy, but they are not a heck of a lot cheaper to manufacturer. The difference is red ink on the bottomline. Dell was notorious for using its low-end to get the customer “into the store” where it could then sell a computer that actually earned a profit. Apple does not have to resort to bait-and-switch tactics. This customer is happy about that. Lack of regard for OS X–I have no idea where you get that idea.
The fact is that OS X is held in very high regard by the people who are familiar with it. Michael Dell begged Steve Jobs for a license. There are numerous websites devoted to porting OS X to commodity PCs. The only thing about OS X that people don’t like is that you have to buy Apple hardware to get it. OPPORTUNITIES – Poor public perception of Windows Vista allows Apple to push OSX as an attractive alternative option for users. – Success of Apple iPhone is a viable stepping stone for Apple to attract new users who previously had not owned an Apple computer. THREATS Global economic situation is likely to reduce demand for higher-priced consumer items. Since Apple offers no lower-end alternatives, consumers will switch to other manufactures in the face of falling incomes. – Windows 7 seems well-poised to correct many of the flaws of Vista and offer a “clean slate” for public perception, discrediting one of Apple’s major selling points (i. e. , that it’s not Vista). Strengths – Strong, reliable eco-system (OS) – Easy to use, intuitive – Small product footprints (saves office space) – Attractive designs (yes, I had to say it) – Product integrations (all their products connect/work with each other)
Weaknesses – High Cost: can build a MUCH better spec’d computer for the same price or even hundreds to thousands less in most situations – Application support is still incredibly limited: most users still will not be able to “only” run Mac OS and will find they still need Windows applications quite a bit. – Practically zero gaming capabilities (due to parts used in the Mac) – Non upgradeable. What you buy is pretty much what you’re stuck with unless you’re looking at the Mac Pro, and even that has its limitations, as it only supports about 4 graphics cards and none of them are the best available. Closed off eco-system, while being great for limiting itself to viruses, also means the user has little control of the system for customization. Opportunities – Branching out and working with more developers for more application support without the need of Windows. – Upp’ing the specs in their systems to their PC counterparts. The days of “you’re paying for the OS” is getting old when you consider for the cost of the highest end iMac you can buy a Core i7 PC that will outperform any Mac for the same price. – Featuring a full sized keyboard on the 17″ notebooks that also has a number pad.
What the hell is up with all that wasted space? – Providing better warranty support. Apple’s warranty purchase plan is pretty horrible and you only get like 90 days standard service compared to everyone else at 1yr. – Removing HDCP from the newly released iTunes HD Movie Store so that they can actually challenge Netflix and not only provide a service that’s only valuable if you have an iPod or iPhone. Threats – Economic crisis is all ready seeing Apple’s market share dip incredibly fast now that people don’t want to spend the excess amounts of cash for a Mac when they can get a better spec’d PC for far less. Windows 7 is actually shaping up pretty nice and adding that to the cheaper cost of PC might actually challenge Apple’s market share even further, especially for budget shoppers. At the very least, Windows 7 is nice enough to make sure that any PC users that were considering leaving to Mac might consider staying with PC now. Strengths • Recognition Brand. • Good reputation. • Integration iPod in iPhone. Use brand iPod as base in order to grow iPhone market. (Customers buy iPhone and also get iPod in the same device) • Good business strategist, Apple is using App Store in iTunes as a tool to drive the iPhone’s market.
And Apple makes it more attract by cutting application prize in App Store off 30% and almost a half of application in the App Store are free to download. (There are 65,000 applications in App Store with 1. 5 billion downloading applications in 1 year. ) • Apple’s iPhone as a first Incumbent of OS software platform in iPhone that success. Apple courage all developers around the world to develop software for the OS software platform in iPhone and be a part of business of App Store in iTunes by distributing software development to make it easy to create application on the iPhone. Good marketing advertisement. • High Research and Development: every year Apple will come out with new technology and new features to beat their competitors. • iPhone has iTunes application, it provides customers to download music and ringtones. • Company’s bargaining power: Only Apple influences on the iPhone design, iPhone software and iPhone’s development. AT&T has nothing to do with it. Only Apple has a right to do it. Weaknesses • High cost subsidizes, we have to subsidize iPhone cost, otherwise customers won’t buy it.
Because it’s too expensive. And prize before subsidize, higher cost than competitors. • Apple provides unlock SIM option, so the iPhone can be unlock. It means customer can switch to another carrier. • Lack of international operates: limited Distribution and Service Channels. Only Apple Store, Apple retail Store can distribute it. So it won’t be enough for customers demand. And even repairing iPhone or replacement, Only Apple Store and Apple retail store can do that. If our country doesn’t has Apple Store, cost of shipping is required. No Strong alliance: AT&T contract will be end 2010 and Google has become a new competitor by sending Android to market. • Contract limited as under the AT&T contract, Apple can’t sell iPhone as much as it can. Opportunities • Social Trend. (People usually change their phones) • Loyal customer especially customer who bought Apple’s product such as Mac, iPod and they are really impressive those stuffs. • First highest market growth rate last year and it has been increasing since 2007. It means growing consumer purchasing power every year. • World’s Smartphone market has been growing every year.
Threats • There is the way to hacking OS, installing applications without purchasing from App Store and it also can unlock the iPhone without permission that all information available on the Internet. So people can do and unlock it easily. • Distribution products oversea. Government of each country’s Tax required for importing product. • Foreign exchange rate changes affecting imports/exports cost • Substitute products by other phones from competitors such as Nokia, Blackberry, etc. • Market has too many rivals, it means high competitions in Smartphone’s market.
Cite this Essay – Swot Apple
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