Faisal Mumtaz
Professor Cunningham
Marketing 3300
12/09/2014
Apple Inc.
Background
Apple has been known as a cutting edge technology that everyone has to have in their
hands. Steve Jobs and Steve Wozniak were the founders of Apple when it first started in their
basement building the first prototype computer called Apple 1. The company produced some of
the best personal computers that could be found on the market, including the Apple brand,
Macintosh and Power Mac computers. Now iPhones are taking over with almost everyone going
crazy over the iPhone 6 and 6 plus. With the goal to be the best consumer electronics, computer
software, online services, and personal computers manufacturer, apple products branches out to
be a provider for almost every technological consumer out there. Apple has invested heavily into
their marketing campaign ads to promote more product awareness and instill into consumers
head that buying an iPhone is the best and most affordable smart phone investment you will ever
make. In 2001, apple introduced the Apple iPod, which is one of those devices that have many
other companies copying, though none can be as good as the original. Apple broke the barrier
with the iPod, eventually becoming the dominant market leader in music players. As well, Apple
joined the phone industry in 2007 with the iPhone, which has also been widely successful. This
would alarm other competitors in this market such as Samsung, Androids, Microsoft, Google and
others to take up this domestic market. Apple saw a downfall in their sales after nineties as the
competition began to increase and the company was then trying to figure out what to do
differently to keep their company running. Finally the company realized to stay on top of their
game and improve upon their technology, they produced such things as the iMac, which really
did help to propel the company in the eyes of many consumers. Besides the products, Steve Jobs
really knew how to present the illustrations of each product with his charismatic pitch that
motivates the customers, employees, and the entire computer industry.
SWOT Analysis
Strengths

Loyal customers: who have been with this company’s products for years (iPhone) and
can’t wait for the next big thing to come out.
Apple’s so much

Interface: Apple’s has appealing design, and is also easy to use and understand.

Innovative: Highly invested Research and Development sector to make new products,
hardware’s and software’s to keep consumer entertained.

Revenue: With an increase in market share by Apple the company has over $100bn in
liquid cash available on the balance sheet and with some of its money reinvested enacted
the latest touch id recently for the iPhone 5s and now for the 6/6 plus.
Weaknesses

Cost of Goods Sold: Apple manufactures its products overseas for much cheaper
price compared to the retail price. Child workers in china has been a huge criticism
for apple as it tries to save manufacturing costs to produce the products.

Price: Relatively high prices compared to other smart phones with almost same
features which can make apple less appealing.

Latest Trend: With almost every 2 years a new iPhone or another MacBook model
comes out, this forces the consumer to buy the new big thing which usually ends up
lowering the revenues of the other previous models.

Product deficiency: Technological products have extremely short lifecycles, so the
development and production of new products and services has to be constant. For
example, iPhone 5-iphone 6 chargers has a physical problem with being bent after
just using it for a limited time. Or the iPhone 6 plus has the ability to bend if the
pressure applied is great.
Opportunities

Investments: Increasing bonds and partnerships with other companies.

Demand: the demand for smart phones and tablets are growing and Apple can take
this opportunity with its iPhones and iPads being used even in corporate world.

Price Agreeability: Greatest opportunity for Apple as a worldwide company to do is
to create a lower priced budget smartphone to cater for the biggest developing
markets in the world, China and India. When apple takes that opportunity than
customer loyalty will come into place and will create a similar market in those
developing countries just like in America.

Innovations: TV with touchscreen and motion technology to challenge Samsung and
Sony.
Threats

Competition: Other smart phones and tablets are being made with almost same
interface and functions conflicting with apples products.

Economy: With global economy in a bad state, high prices there will look less
appealing.

Technology: The rapid movement in technology is a threat to Apple. If the industry
moves faster than the company, Apple will lag behind.

Foxconn workers salary: Foxen are one of manufacturers for Apple brands and their
workers salary already increased 3 times from 2010 to 2012.
Business Portfolio
Apple has many products that are comprised in the business portfolio analysis. First
iPhones are considered a star with each new model releasing such as the iPhone 6/ 6 plus and
with its dominance plus growing market. Second MacBook’s on the other do not dominate the
PC sector of the market (just yet). With a small chunk of market share and increasing category
MacBook’s falls under the cash cow section. Microsoft has been dominating back in the day and
should keep dominating for a few years unless Apple lowers its PC’s prices, and innovate more.
Third IPads are dominant in terms of market share but the shipments declined in the third quarter
with slight increase in Samsung’s tablet. Thus making IPad a cash cow, enjoy the profits while it
lasts and maybe try adding some more technical upgrade. Lastly the new Apple watch seems to
fall under the question mark as it is new to the watch domestic market. Many analysts are saying
the Apple watch will be a fail due to its unsubsidized prices, around 650 to 850, and no plans or
contracts yet available many consumers might avoid this new segment. Some experts say once
released and well dived into the market, this product will eventually become a dog with low
market share and growth.
Opinions
Apple has been the fans favorite technology to play with. Ranging from toddlers to
grandparents, the demographics are well covered by this giant corporation. Apple is brand that is
worldwide famous and almost everybody in the world recognizes this company. They started
pouring lots of revenue when the first iPod and iPhone were released. Now they left the Ipod as a
dog and kept going with newer models of the iPhones. With IPhone doing just fine in terms of
market share and growth, it’s the MacBook’s, iPad and in the future the apple watch that need
more attention. MacBook’s are established through numerous commercials and advertisements,
but with Microsoft newest addition the Surface Pro 3 it looks like Apple are having to fight that
battle. With the last year’s quarter sales sky rocketed to 908 million dollars. There is no telling
which laptop will dominate the PC market, but if consumer loyalty for apple keeps getting
stronger than apple might just dominate the PC market after all. The apple watch has the world’s
attention in terms of the next biggest thing. After the release of the IPhone 6, people want to get
a hold of this technological watch. Many analysts decided this might be a fail in terms of price
level, but if apple can offshore this product and have it get established the international market,
there might be a chance for it to shine. When MacBook’s prices were lowered significantly the
sales increased by 5%. If Apple does the same with price of Apple Watches then many
customers ought to purchase it.
Conclusion
Apple is a very intriguing company to analyze in terms of products, technology and
how they market through ads and lowering prices. I trust this technology giant to dominate the
PC market and maybe the watch market. We will see how far they will innovate to stay on top of
its competitors. With being the best consumer technology the company in every section, apple
has to make sure they eat up the majority of market shares so they leave other tech giants out of
the market. Apple has been successful in China and Japan due to their larger emerging economy.
With this being said Apple needs to market or develop better products so they can stay on top of
their current shrine domestically. 64% of the first quarter in 2014 of its revenue came from the
international side. If Tim Cook can reestablish the Steve Jobs marketing genius ideas than Apple
can very be impossible to catch up to.
Citations
Ahmed, Gulzhar. "SWOT Analysis of Apple Corporation 2013." SLN. Study Lecture Notes, 20
Apr. 2014. Web. 09 Dec. 2014.
Lunden, Ingrid. "Apple Says International Took 64% Of Revenues In Q1, Led By Growth In
China And Japan." TechCrunch. Tech Crunch, 27 Jan. 2014. Web. 08 Dec. 2014.