Gartner for Business Leaders
Publication Date: 18 May 2009
ID Number: G00167802
SWOT: Apple's iPhone Business, Worldwide
Carolina Milanesi
Gartner examines the strengths, weaknesses and opportunities of Apple's iPhone
business, and the threats it faces. The iPhone marked Apple's entry into the mobile
device market, which it has reshaped by showing that a phone's usability is just as
important as an attractive case and technical specs.
© 2009 Gartner, Inc. and/or its Affiliates. All Rights Reserved. Reproduction and distribution of this publication in any form
without prior written permission is forbidden. The information contained herein has been obtained from sources believed to
be reliable. Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information. Although
Gartner's research may discuss legal issues related to the information technology business, Gartner does not provide legal
advice or services and its research should not be construed or used as such. Gartner shall have no liability for errors,
omissions or inadequacies in the information contained herein or for interpretations thereof. The opinions expressed herein
are subject to change without notice.
TABLE OF CONTENTS
Analysis ............................................................................................................................................. 3
SWOT Analysis .................................................................................................................... 3
Strengths ................................................................................................................. 5
A Strong, Aspirational Brand ...................................................................... 5
An Outstanding User Interface ................................................................... 5
A Rich End-to-End Offering........................................................................ 5
High Margins Are Driving a Profitable Business ........................................ 6
Weaknesses ............................................................................................................ 6
A Small Portfolio Restricts Market Growth Potential .................................. 6
Current Mobile Contracts Keep TCO High ................................................. 7
Perceived Dependence on Steve Jobs ...................................................... 7
Opportunities ........................................................................................................... 7
Consumerization Opens Door to iPhone in the Enterprise Market ............ 7
Consumers' Growing Interest in Complete Solutions................................. 8
Increased Interest in Mobile Internet Devices ............................................ 8
Advanced Exploitation of Touch Interface.................................................. 9
Threats..................................................................................................................... 9
Economic Downturn Limits Disposable Income ......................................... 9
Touchscreen Devices Are Becoming More Pervasive ............................... 9
Google and Nokia Are Strengthening Their Ecosystems......................... 10
Implications for Apple ......................................................................................................... 10
Company Overview ............................................................................................................ 11
Methodology ....................................................................................................................... 11
Recommended Reading.................................................................................................................. 12
LIST OF TABLES
Table 1. SWOT: Apple's iPhone Business, Worldwide ..................................................................... 4
LIST OF FIGURES
Figure 1. SWOT: Apple's iPhone Business, Worldwide .................................................................... 3
Publication Date: 18 May 2009/ID Number: G00167802
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Page 2 of 13
ANALYSIS
For years, advances in technology and hardware design have been the key attractions prompting
consumers first to buy a particular model of mobile phone and later to upgrade to a newer one.
But the arrival of Apple's iPhone has made users expect more by showing that advanced
technology and attractive looks can go hand in hand with something just as important — excellent
usability and a wide range of easily accessible applications and services.
As the tough economic environment heaps more pressure on vendors to contain costs and
safeguard margins, better user interfaces (UIs) and more interesting services and applications will
be needed to attract buyers. Handsets will be judged according to how easy they are to use and
the richness of the overall experience they offer. Only when mobile devices live up to users' new
expectations will they start to be perceived as essential tools for communication, entertainment
and productivity, rather than just simple phones.
SWOT Analysis
Figure 1 is a graphical representation, based on Gartner's SWOT rating model, of the strengths,
weaknesses and opportunities of Apple's iPhone business, and of the threats it faces. The
strengths and opportunities outweigh the weaknesses and threats.
A strong brand, ease of use, and a rich application and content offering have made the iPhone
the device every handset vendor wants to emulate. This means Apple will need to broaden its
portfolio and continue to offer innovative software if the iPhone is to stay ahead of its competitors.
Figure 1. SWOT: Apple's iPhone Business, Worldwide
S
O
O
W
W
TT
Source: Gartner (May 2009)
Table 1 gives a summary in words.
Publication Date: 18 May 2009/ID Number: G00167802
© 2009 Gartner, Inc. and/or its Affiliates. All Rights Reserved.
Page 3 of 13
Table 1. SWOT: Apple's iPhone Business, Worldwide
Strengths
Weaknesses
•
A strong, aspirational brand.
•
A small portfolio restricts market growth potential.
•
An outstanding user interface.
•
Current mobile contracts keep TCO high.
•
A rich end-to-end offering.
•
Perceived dependence on Steve Jobs.
•
High margins are driving a profitable business.
Opportunities
Threats
•
Consumerization opens door to iPhone in the
enterprise market.
•
Economic downturn limits disposable income.
•
•
Touchscreen devices are becoming more pervasive.
Consumers' growing interest in complete solutions.
•
•
Increased interest in mobile Internet devices.
Google and Nokia are strengthening their
"ecosystems."
•
Advanced exploitation of touch interface.
TCO = total cost of ownership
Source: Gartner (April 2009)
Publication Date: 18 May 2009/ID Number: G00167802
© 2009 Gartner, Inc. and/or its Affiliates. All Rights Reserved.
Page 4 of 13
Strengths
A Strong, Aspirational Brand
According to Interbrand's annual ranking of the world's best brands, Apple climbed from No. 33 in
2007 to No. 24 in 2008 (see http://www.interbrand.com/best_global_brands.aspx?langid=1000 ).
During the same period, Apple's brand value grew by 24% to $13.7 billion. Of the other top 100
brands, few sell mobile phones: Nokia is at No. 5, Sony at No. 25, BlackBerry at No. 73 and
Panasonic at No. 78.
When it comes to Apple's go-to-market strategy for mobile devices, the U.S. company chose to
pursue a niche market with a high-end offering initially based around exclusivity. This, together
with marketing hype, helped make the iPhone a highly aspirational product.
The power of Apple's brand is clear from the nature of the deals it was able to negotiate with
network carriers at the iPhone's launch. These arrangements marked a new way of doing
business for the mobile industry, by including revenue-sharing between handset maker and
carrier, multiyear exclusivity terms and no carrier subsidy for the handset. This was especially
new in the U.S., where carriers have long controlled the distribution channel and dictated terms
and conditions.
Although Apple moved away from the traditional business model in order to widen the
addressable market for the iPhone, the power of its brand is still evident in some of the
concessions that operators have been prepared to make in order to be able to sell the handset.
During a recent court case in France, for instance, it was disclosed that Orange was subsidizing
each iPhone it sold by about 300 euros.
An Outstanding User Interface
Apple's iPhone is the most talked-about and imitated mobile handset of the past two years. Its
success has alerted other handset makers to the value of a great UI. One of the main strengths of
the iPhone is its innovative multitouch screen. One can, for example, zoom into a picture or Web
page by placing both thumb and index finger on the screen and moving them apart, and then
zoom back out by moving them back together. Such capabilities, combined with Apple's platform
and services, have made the iPhone a compelling proposition for consumers.
Many vendors put the iPhone's success down to its touchscreen alone, and therefore thought it
would be enough simply to add touchscreen technology to their portfolios. But the iPhone's
success goes well beyond touch. What really makes the iPhone's UI stand out is its tight
integration of software and touchscreen hardware — they come together to provide a holistic user
experience. An example is how the virtual keypad adjusts to the multiple languages supported by
the iPhone.
So far, no handset has come close to matching the iPhone's UI. The Palm Pre looks to have
potential and many similarities to the iPhone's UI, judging from the paper specifications. But the
Pre is not yet available, so it is too soon to judge their relative merits.
A Rich End-to-End Offering
Apple's entry into the mobile phone market in 2007 introduced a business model very different
than that which handset vendors traditionally used. Apple generated revenue not only from the
iPhone itself, but also from associated charges for services and content consumption. Through
tight integration of handset, software applications, content and back-end billing, Apple created a
highly usable product. No other mobile phone maker has as much control over the value chain,
and it is this control that enables Apple to deliver a rich end-to-end offering.
Publication Date: 18 May 2009/ID Number: G00167802
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Apple's App Store is a big part of this. Its numbers are impressive: a catalog of over 35,000
applications and over 1 billion downloads in its first nine months show that the store has been a
hit with both developers and users. Application developers have welcomed a way to market to
consumers more directly than they usually could through carriers. They also like the opportunity
to price their own applications. Interestingly, 62% of the developers delivering to the App Store
during its first nine months were new to Apple. The App Store's success has spurred many
handset vendors and carriers to consider offering similar propositions to increase revenue and
brand loyalty.
Ovi-branded services are Nokia's attempt to create a similar ecosystem, add value to its
hardware and create a new source of revenue. Other vendors are taking a more limited
approach, conscious that such initiatives often present direct competition to mobile operators that,
in many regions, remain their main route to market. Notably, Google has moved into the mobile
platform business with Android to widen the market for its services offering.
Although Apple is new to the mobile phone market, it has many users and, thanks to iTunes,
holds details of 75 million credit cards. iTunes is a powerful asset for Apple, as people find it more
straightforward to buy content from it than from the systems set up by many carriers and handset
vendors. Like the iPhone's UI, the ease of use of iTunes is a key part of Apple's end-to-end
offering. On the application side, Apple's computer business has given it extensive experience of
dealing with developers. This gives it another advantage over its competitors.
High Margins Are Driving a Profitable Business
Apple's financial results for the iPhone and related products and services in 1Q09 reported
revenue of $1.5 billion (revenue derives from handset sales, carrier agreements and sales of
Apple-branded and third-party iPhone accessories). This represented a 22% increase quarter on
quarter, despite a 13% decline in sales volume. Gartner's analysis of the bills of materials for the
first two generations of iPhone actually showed a lower figure for the iPhone 3G. This may have
resulted in even larger margins for Apple.
Gartner believes that Apple will continue to safeguard its margins by introducing a higher-end
device in June 2009. This will help to sustain Apple's revenue while it lowers the price of the older
3G iPhone to increase market share.
Apple has often said it is not interested in becoming the largest phone maker, but rather wants to
be the one that offers the best phone. Not that the two are mutually exclusive, of course. Apple's
iPod business started with similar intentions but went on to command over 70% of the U.S. MP3
player market. It will be interesting to see if the iPhone business develops similarly.
Weaknesses
A Small Portfolio Restricts Market Growth Potential
Apple currently offers only one mobile phone, the iPhone 3G, in a choice of only two colors. This
focus on a single phone has simplified the work of application developers (especially as the iPod
touch has essentially the same physical design and many of the same features) and resulted in
more applications being created. But it also places big limitations on the iPhone's market reach
and growth potential.
There is scope for Apple to improve the iPhone 3G without changing the underlying design too
much: memory and battery life could be increased, and an organic light-emitting diode (OLED)
screen would make the handset thinner. We think Apple should have three or four products with
different designs, possibly at different price points, to attract a broader audience and increase
sales. That said, although having a lower-end product would help sales in emerging markets and
Publication Date: 18 May 2009/ID Number: G00167802
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drive up Apple's market share, the development of the iPod portfolio shows that it might be too
early for Apple to take this step.
Current Mobile Contracts Keep TCO High
Contracts for high-end handsets are typically longer and more expensive, and the iPhone's
contracts are no different. The high level of subsidy that operators often commit to high-end
devices means they have to ensure contracts deliver a worthwhile return on investment.
This approach could prove problematic as the economic downturn makes consumers more aware
of costs. In particular, whereas buyers traditionally have not paid much attention to a handset's
total cost of ownership (TCO), the downturn is making them wary of the financial commitment that
comes with 18- and 24-month contracts. Also, although the iPhone's main strength is its superior
Web browsing capabilities and applications, some consumers might be more interested in its
MP3 capabilities; they might not want to subscribe to hefty data plans.
As such, Apple needs to work with carriers on different pricing options to widen its addressable
market. For some types of user it might be worth lowering the cost of the contract but increasing
the price of the iPhone. We have recently seen operators in some European counties offer the
iPhone as a prepay device, a move that will certainly help to widen its addressable market.
Perceived Dependence on Steve Jobs
Steve Jobs co-founded Apple but left the company in 1985. He later returned, becoming CEO —
the position he still holds — in 1997, after Apple bought NeXT, the firm Mr. Jobs founded after
leaving Apple.
In 2007, Fortune Magazine named Mr. Jobs the most powerful person in business. Certainly,
since his return to Apple, there has been no doubt about his contribution to the company's drive
and vision.
However, Mr. Jobs has had health problems. He announced in 2004 that he had developed
pancreatic cancer but that the tumor had been successfully removed. More recently, on 5
January 2009, he wrote to the Apple Community explaining why he had lost weight and saying he
would remain as Apple's acting CEO while receiving treatment for a nutritional problem. This
letter was followed, on 14 January, by an e-mail informing Apple employees that his health issues
were more complex than anticipated and that he would take a leave of absence until the end of
June. These two statements in January have not stopped rumors about his illness and the impact
that his possible departure from the company would have on the business. In our view, although
Mr. Jobs has been a catalyst of Apple's success, his departure would not mean the end of the
company's vision and drive. This, however, is not a view that some press and Wall Street
analysts share, and the continued grinding of the rumor-mill is detrimental to Apple.
Opportunities
Consumerization Opens Door to iPhone in the Enterprise Market
The blurring of the distinction between enterprise and consumer devices intensified in 2008.
Mobile devices are no longer limited to one e-mail account or one calendar, and businessfocused devices are no longer larger and less stylish than consumer-focused ones. What's more,
the proliferation of messaging and other text-based services is prompting consumers to buy
devices with qwerty keyboards, a feature traditionally popular mainly with enterprise users.
Enterprises have found it hard to satisfy all their employees with a single, standard mobile device,
especially as the range of affordable smartphones has grown. Users adopt whichever device they
believe has the design, features and applications to meet their individual needs in and out of the
Publication Date: 18 May 2009/ID Number: G00167802
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workplace. The resulting variety of personal devices in the workplace causes problems for IT
departments, which rely on standards and stable platforms. But attempts to ban, discourage and
control the use of personal devices have not succeeded — in part because the biggest offenders
are often the executives to whom the IT organization reports. Enterprise IT departments will start
to cope with this trend in 2009 by shielding business information and enforcing policies that
govern data movement between user devices and the corporate network. These measures will
protect the business, while enabling users to adopt their preferred device.
Apple has added some enterprise security features to the iPhone in response to the considerable
interest shown by enterprises. More recently, it began advertising the availability of applications
that would help small businesses. These are clear signs that although Apple remains primarily a
consumer-focused company, it will take advantage of the trend for consumerization in the world
of business, now that anecdotal evidence shows corporations are adopting the iPhone as a
business device. We think Apple will continue to work on the iPhone's appeal to business users
by meeting enterprise IT requirements, while still placing most emphasis on its attraction to
consumers. This should result in the most sales for the least effort.
Consumers' Growing Interest in Complete Solutions
Hardware is destined to become an enabler of a richer mobile device experience, one that draws
on a full ecosystem of software, services and applications. Technology and physical design will
remain important, and there will no doubt be some exciting hardware developments. But users —
and therefore handset vendors — will increasingly be interested not in hardware per se but in the
overall experience of using a mobile handset, to which hardware makes a major contribution.
This change in the perception of mobile hardware will be gradual. But it is already under way in
the high-end sector, driven by the larger role played by smartphones. More and more users will
take an interest in a smartphone's operating system (OS), as it is this that determines which
applications and services it can run — and it is largely applications and services that will
determine a smartphone's appeal. Applications and application stores will become the new focal
point for high-end devices. Users will see them as a way to personalize and reinvigorate their
handsets (though this won't necessarily lengthen the life of individual devices, as they suffer from
wear and tear).
Apple started this trend with the iPhone (if not iPod) and is better placed than any other phone
vendor to offer rich end-to-end solutions, thanks to its control of a platform, a services offering
and a superior UI. The App Store is the most obvious sign of success for the ecosystem that
Apple put in place for the iPhone and iPod touch. The software development kit recently launched
as part of the iPhone 3.0 software update is likely to attract even more developers and allow for
more complex applications thanks to more than 1,000 new application programming interfaces,
the In App Purchase feature and the External Accessory Framework that allows applications to
communicate with "made for iPod" accessories. Applications will not only enable consumers to
keep their handsets feeling fresh, but also grant easier access to popular services like Facebook.
Increased Interest in Mobile Internet Devices
Gartner expects overall sales of mobile handsets to fall in 2009, but we remain bullish about the
smartphone segment, for which we forecast healthy growth of 27%. The smartphone segment
includes a new category of product, the mobile Internet device (MID), which is catching the eye of
the press and consumers.
MIDs usually have better Web browsing capabilities than other handsets. Their larger screens
also encourage the viewing of video. Carriers are already using "smart subsidies" to encourage
sales of handsets that generate revenue for them, so it is reasonable to think that MIDs will also
be subsidized to make them more affordable for consumers.
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The iPhone and iPod touch are both MIDs, so Apple could benefit from the hype and publicity
surrounding this type of device among both consumers and operators. Traditional mobile device
vendors such as Nokia, as well as PC vendors like Asus and Acer, are eyeing the MID and mininotebook PC ("netbook") markets. But Apple's control of OSs from computer to mobile device
gives it an advantage over these competitors by making it easier to create a fluid offering for both
consumers and developers.
Advanced Exploitation of Touch Interface
If 2008 was the year of "simple touch" as the "good enough" response of competing vendors to
Apple's iPhone, 2009 and future years will be about improving the touch interface and the overall
handset UI.
Now that most vendors offer a variety of touchscreen handsets, consumers are looking for those
models that stand out. Apple has a good opportunity to stay ahead in this respect, thanks not just
to its multitouch technology but also to the tight integration of software and applications on its
platform. By contrast, most of Apple's competitors are still trying to achieve a sophisticated
capacitive touch interface.
Threats
Economic Downturn Limits Disposable Income
The economic downturn has hurt the mobile handset industry in terms of both sales and revenue.
Not only are consumers keeping handsets longer, but they also are spending less when they do
replace them.
Although the high-end and low-end sectors of the market have been less badly affected than the
midrange, their sales are still under pressure. What's more, as noted above, the longer and more
expensive contracts associated with high-end devices like the iPhone have become a concern for
some consumers. Anecdotal evidence from 4Q08 showed that consumers in Western Europe
and North America were not very enthusiastic about the prospect of receiving an iPhone for
Christmas, as they were worried about the commitment to a long contract.
We do not expect replacement cycles to shorten before mid-2010.
Touchscreen Devices Are Becoming More Pervasive
Prompted by the success of the iPhone, capacitive touchscreens are fast becoming a common
feature of mobile handsets. Notably, Nokia introduced its 5800 and N97 touchscreen devices
toward the end of 2008, and Research In Motion has released its first touchscreen phone, the
BlackBerry Storm. In addition, Palm announced its Palm Pre at the 2009 Consumer Electronics
Show, marking this company's move from resistive to multitouch capacitive touchscreens.
We expect all major handset suppliers to offer more touchscreen phones in 2009. We also predict
that the market share of touchscreen models will grow to nearly 40% of all handsets sales in
2012, in which year over 550 million touchscreen handsets will be sold.
Capacitive and resistive touchscreens will coexist for several years at least. Capacitive touch will
be the main technology for advanced multitouch screens. Resistive touch technology will still be
used, partly because of its lower cost and partly because it makes it easier to input characters in
Chinese, Japanese and other Asian languages using a stylus.
As more phone makers offer touchscreen models, Apple will have to work to stay ahead by
integrating touchscreen technology more deeply into the iPhone's UI. That said, although many
consumers will look for a superior touchscreen experience, many others will happily settle for
Publication Date: 18 May 2009/ID Number: G00167802
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devices that simply have a touch interface. Either way, touchscreen technology will no longer be
a great differentiator on its own.
Google and Nokia Are Strengthening Their Ecosystems
Apple's success with the iPhone and associated applications, services and accessories makes it
clear that consumers — or at least those who buy high-end devices — are interested in offerings
comprising more than just hardware. This trend has prompted companies like Nokia and Google
to expand their business models. Nokia has moved into services with its Ovi range, while Google
has moved into platforms with Android. Though they are taking different approaches, both Nokia
and Google are trying to achieve what Apple already offers.
Nokia will, in time, roll out Ovi services to products other than its Nseries handsets, and perhaps
eventually to other manufacturers that are members of the Symbian Foundation. This would
significantly widen Nokia's addressable market and make its application store more appealing to
developers.
Google's aim is to extend its reach in the consumer market beyond PCs. It wisely decided not to
enter the market as a phone maker but to develop a platform that would allow many vendors to
deliver products that run its services. With HTC, Samsung, LG, Sony Ericsson, Motorola and
Huawei all bringing Android-based products to market, Google has a good opportunity to build a
considerable presence in the mobile market.
Nokia and Google will be Apple's main challengers by offering alternatives to Apple's ecosystem
and device portfolios with different form factors and price points. Apple should continue to work
on what it does best, namely controlling the whole value chain in order to achieve deeper
integration of mobile services and hardware.
Implications for Apple
Although the economic downturn continues to hurt the mobile device market, Gartner remains
positive about growth in the smartphone segment. We expect smartphone sales to grow by 27%
in 2009 and to account for over 40% of handset sales in 2012. As such, it's clear that Apple has a
good opportunity for growth in the coming years. The major shift in emphasis from hardware to
services and software also plays to Apple's advantage, as this is where the iPhone excels.
On the other hand, both the global economic situation and Apple's small handset portfolio limit
the company's addressable market. Although going mass-market with a lower-end product would
not necessarily be the right move for Apple, a few more devices, perhaps with different form
factors, would help the company increase its market share. We also think Apple should work with
operators to create more flexible contract options to lower the iPhone's TCO. This would widen
Apple's addressable market without reducing its profit margin too much.
We think Apple will stay ahead of its competitors, not necessarily from a technology perspective
but because its overall offering covers the "must haves": a good touchscreen, an intuitive UI,
reliable software and a wide range of easily accessible applications and services.
Apple's success with iPhone and App Store has opened its competitors' eyes to how a rich
service and application offering can add value to hardware and boost revenue. This will be the
area in which competition intensifies most, with Nokia and Google in particular pushing their own
offerings to consumers. Although their solutions might not be on a par with Apple's, their device
portfolios are likely to be much larger, which could make their solutions more interesting for
application developers.
Publication Date: 18 May 2009/ID Number: G00167802
© 2009 Gartner, Inc. and/or its Affiliates. All Rights Reserved.
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Company Overview
Company Name:
Apple Inc.
Headquarters:
1 Infinite Loop
Cupertino, CA 95014
United States of America
Telephone: (U.S.) 408.996.1010
Apple designs, manufactures and markets PCs, portable digital music players and mobile
communication devices. It also sells a variety of related software, services, accessories and
networking solutions. The company offers its products and services mainly to consumers, but
also reaches professional, business, education and government customers.
Background to the iPhone:
Apple introduced the iPhone at MacWorld in January 2007 and released it in the U.S. in June of
that year. In July 2008, the company began selling a new generation iPhone, the iPhone 3G, and
significantly expanded its distribution by establishing relationships with mobile carriers in over 70
countries.
Unit sales of the iPhone 3G have been significantly greater than of the first iPhone. During the
first three months of the iPhone 3G's availability (a period ending 27 September 2008), 6.9 million
units were sold, exceeding the 6.1 million first-generation iPhones sold in the previous five
quarters.
In March 2009, Apple announced new iPhone software (release 3.0), which will be released in
2Q09. Apple also announced over 100 new features that will be available to iPhone and iPod
touch users at the time of the new software release. They include cut, copy and paste; support for
the Multimedia Messaging Service (MMS); landscape view for Mail, Text and Notes; stereo
Bluetooth; synchronization of Notes with Macs and PCs; "shake to shuffle"; parental controls for
TV shows, movies and apps from the App Store; and automatic login at Wi-Fi hot spots. The
iPhone OS 3.0 beta release will also include a new Voice Memo app, expanded search
capabilities for all key iPhone apps, and Spotlight search for iPhone and iPod touch.
Apple reported sales of 13.7 million iPhones in 2008 and 3.4 million in 2007. As of April 2009, the
iPhone was on sale in 87 countries. The App Store reached 1 billion downloads in the nine
months to April 2009, and offered over 35,000 applications.
Methodology
We chose Apple for analysis because of the great impact the iPhone has had in the mobile
device market by setting new trends and introducing a new business model. To understand the
effect the iPhone has had on the mobile industry, we needed to look beyond market share
numbers and consider the trends that Apple and its handset have set in motion: touchscreen
devices are now a "must have" for many consumers (see "Dataquest Insight: Apple iPhone Spurs
Growth of Capacitive Touch in Consumer Electronics"), and vendors and carriers alike are
focusing on replicating the App Store and its associated ecosystem (see "Application Stores Take
Center Stage at MWC 2009").
Publication Date: 18 May 2009/ID Number: G00167802
© 2009 Gartner, Inc. and/or its Affiliates. All Rights Reserved.
Page 11 of 13
The methodology behind this and other SWOT analyses is explained in detail in "The Gartner
Vendor SWOT Analysis, Update 2008."
The Gartner vendor SWOT analysis is designed for the use of vendors as a supplement to their
planning processes. Its primary value is as an independent analysis of a vendor's competitive
situation. The SWOT analysis provides a unique, independent view of the strengths, weaknesses
and opportunities of a vendor, and the threats it faces, in a specific market and geography. The
geography (for example, global or regional) and market and/or submarket reflect Gartner's market
segment definitions or market focuses (for example, small and midsize businesses). Vendors are
selected on the basis of a variety of criteria, such as growth rate, major changes in positioning
and channel strategy — they are not necessarily the companies with the largest market shares.
RECOMMENDED READING
"Market Share: Mobile Devices by Region and Country, 4Q08 and 2008"
"Dataquest Insight: Apple iPhone Spurs Growth of Capacitive Touch in Consumer Electronics"
"Forecast: Smartphones By Operating System, Interface and End User Segment, Worldwide,
2006-2012"
"Application Stores Take Center Stage at MWC 2009"
"Vendor Rating: Apple in the Enterprise"
"Report Highlight for Dataquest Insight: Teardown and Semiconductor Cost Analysis of Apple's
iPhone 3G"
Publication Date: 18 May 2009/ID Number: G00167802
© 2009 Gartner, Inc. and/or its Affiliates. All Rights Reserved.
Page 12 of 13
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