SWOT Analysis of the APPLE iPhone

SWOTAnalysis of the APPLE iPhone

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SWOTAnalysis of the APPLE iPhone

TheApple Corporation, founded in 1977, is one of the largestmanufacturer and marketers of technological products such as personalcomputers, mobile media and communication devices and digital musicplayers. The company also provides related software, peripherals andthird party applications. Some of the most marketable productsproduced by this company include the Mac laptops and desktops, thephone series and also the iPad and iPod franchise. Most of thecompany products are sold through the company’s online and physicalstores, but some of them can be found through the third party sellersin different places around the world. The iPhone is one of the majorproducts by Apple Corporation that really put the company on the mapin almost all places around the world. This was the first mobiletelephone that could truly be referred to as a ‘smartphone.’After so many years since the phone franchise was launched, thecompany has still managed to maintain a significant portion of thesmartphone market. The following is a SWOT analysis to analyze someof the strengths, weaknesses, opportunities and threats that theApple Corporation has faced in marketing the iPhone.

InternalFactors

  1. The Strengths

Thebrand quality is one of the greatest strengths that the marketing ofthe iPhone has encountered. The Apple Corporation is one of thebiggest mobile phone manufacturers in the world and has gained a lotof respect from a lot of users. Since the days when the company wasmanufacturing the Macintosh computers, it managed to create a greatreputation for the manufacture of good quality products which hasmade it easier for the customers to trust their products (Tar, 2013,n.p.). The IOS software that is used in the iPhone smartphones isperceived to be one of the most stable operating systems. Manycustomers prefer this phone over others because it uses thisoperating system. The updated innovation that has always been appliedin the manufacture of the iPhone has also played a big role inmaintaining and getting the company new customers. The manufacturerof this phone has always applied new technology whenever a new phoneis launched.

  1. Weaknesses

Oneof the most basic weaknesses of the iPhone is that it is relativelyexpensive. The iPhone has been known to target the A grade marketsegment where the consumers pay relatively high prices to acquire thegadgets (Harris, 2014, n.p.). Another weakness is that the phone hasa couple of unnecessary restrictions that are not available on othermobile phones. For instance, the phones do not come with expandablememory. The phone battery is also non-removable and hence one cannotreplace it in case the battery gets damaged. The phone also lackssome of the most common features found in other phone brands likemessage forwarding, Bluetooth transfer and FM Radio (Tar, 2013,n.p.). For a phone with such high prices, one would expect it to havemore features. The phone series also lacks variety. The company hasbeen consistent with the kind of designs they produce. As much asthis may be a good thing for the staunch customers, the world isfilled with many people and some of them like variety. Most of thephone accessories that work on the iPhone are sold at a relativelycostly price while other phone users get them free of charge.

ExternalFactors

  1. Opportunities

Oneof the greatest opportunities that the Apple Corporation can takeadvantage of is that there is still a great portion of the marketthat has been untapped. The number of people around the world who aremigrating to the use of the Smartphone is still very large hence,the company has a great opportunity to capture new customers. Theculture of producing technologically advanced products is also anopportunity for the Apple Corporation to take advantage of the marketexpectations to market their iPhone products (Tar, 2013, n.p.). Inthe past years that the company has been producing smartphones, thecompany has been consistent in the production of innovations. Thegeographic expansion of the use of smartphones is also an opportunityfor the company to get more market for their products. In the past,the smartphones were only used in urban areas, but the geographicexpansion of the use of phones has significantly grown.

  1. The Threats

Thebiggest threat to the iPhone business is the Android operating systemthat has made great strides and managed to create a lot ofcompetition among the smartphone users. Android OS provided by Googlehas taken the world by storm and has managed to capture asignificantly large segment of the market because it is relativelyfree. Other competitors in the phone manufacturing business includeHTC, Sony and Nokia among others (Tar, 2013, n.p.). Another threat tothe successful marketing of the iPhone is the development of otherbig phone manufacturing brands like Samsung. Samsung has managed torevolutionize the smartphone business and has shown people theadvantages of using the Android operating system. The company alsoproduces a variety of smartphones at pocket-friendly prices. Therehas also been a threat that the Apple Corporation is slowly losingits shine. Since the death of the founder, Steve Jobs, the companyhas been relatively slow in coming up with new technology, and thishas cost them the loss of a significant number of customers (Amit &ampZott, 2012, 53).

References

Amit,R., &amp Zott, C. (2012). Creating value through business modelinnovation. MITSloan Management Review,&nbsp53.

Harris,L. K. (2014). Apple Computer Pricing Strategy: Key Success Factorsand Profit Margin.

Tar,A. (2013). Apple SWOT Analysis.