Apple Inc.’s SWOT (Strengths, Weaknesses, Opportunities, Threats) Analysis

Topic: Company Analysis
Words: 660 Pages: 3

What company is this?

Apple is a large, multinational company that sells electronic devices, including through the Internet. Apple’s customer base is very large and diverse, with people all over the world using its products. This, combined with the high quality of production and service and sound marketing strategies, makes Apple the most expensive company in the world (Ross, 2021). Thus, SWOT analysis performs for a giant in the e-commerce industry, namely Apple, Inc.

It is also worth mentioning that it is an American company headquartered in Cupertino, California. The main areas of production, which the user can buy through the online store or in person, are smartphones, tablets, laptops and computers, headphones, smartwatches, and related equipment.


Apple’s strengths are its high commitment to quality and innovation. Every year, the company presents new ideas, which, although they may already be on the market, significantly win their implementation quality. Sources show that Apple is the most recognizable brand in the world, which has an excellent effect on its perception in the eyes of customers (SRD, 2021). Even people who do not use the company’s services know a lot about the firm’s latest products. At the same time, Apple invests in social responsibility when it creates programs to support young students and vulnerable ethnic minorities (Dudovskiy, 2021; Ruggs & Avery, 2020).


On the contrary, Apple has several weaknesses. The company’s products are pretty expensive, and most of them are sold through retail chains since the brand has few personal stores. Purchases can be made through the Web site, but there is a performance strain because of the attractive visuals. The company gives virtually no discounts or bonuses unless the customer is a student. There are stories linking Steve Jobs to the use of child labor, which gives the company negative connotations (Kuroski, 2018). Finally, Apple strives to follow trends and creates Apple TV+, social support programs, but because of such an atypical expansion of responsibility, the quality of such services can limp.


Apple is an innovator in the technology market, but not all discoveries are made by this company. It is clear that the industry is moving toward greater environmental awareness and a reduced carbon footprint (Arleb 2013). In addition, there is a growing demand for technological performance in processors: companies are looking to reduce the size of silicon chips (Moore, 2020). It has also been shown that the market for wearable smart devices will double by 2022 (Lamkin, 2018). At the same time, more and more big businesses are betting on social responsibility, recognizing the rights of vulnerable groups, and supporting them. As a result, Apple must take the above patterns and trends into account in order to remain relevant.


Among others, Apple is highly vulnerable to external factors. One of them was COVID-19, which significantly damaged optimized economic ties and disrupted supply chains (Ahmed et al., 2020). The need to maintain a competitive advantage over Google and Microsoft also imposes an obligation on management. Every month, the company is subjected to litigation as plaintiffs seek compensation from the company (Heisler, 2018). At the same time, the price for high brand recognition is an increase in counterfeit products, which can negatively affect the customer experience. Finally, some countries restrict or complicate free trade, which means Apple has to pay more taxes when it is present in a foreign market.


Ultimately, it must be recognized that Apple has both strengths and weaknesses in its policies. It has to face many of the threats discussed in its services, but they create a foundation for growth opportunities. The company enhances its social responsibility, invests in innovation, and protects patent rights transparently to remain highly competitive. In addition, Apple is committed to high-quality manufacturing, so current customers tend to remain loyal to Apple. The technology industry changes dynamically, so management must have a strategic vision and projections to keep the firm relevant a year, five, or ten years from now.


Ahmed, S., Hoek, J., Kamin, S., Smith, B., & Yoldas, E. (2020). The impact of COVID‐19 on emerging markets economies’ financial conditions. FEDS Notes, 1-10.

Apple. (2013). Environmental health and safety policy statement [PDF document].

Dudovskiy, J. (2021). Apple corporate social responsibility (CSR). BRM.

Heisler, Y. (2018). There are now almost 60 class-action lawsuits against Apple for secretly throttling iPhones. BGR. Web.

Kuroski, J. (2018). 10 surprisingly dark truths about Steve Jobs and Apple. ATI.

Lamkin, P. (2018). Smart wearables market to double by 2022: $27 billion industry forecast. Forbes.

Moore, S. K. (2020). A better way to measure progress in semiconductors. Spectrum.

Ross, J. (2021). The biggest companies in the world in 2021. Visual Capitalist.

Ruggs, E. N., & Avery, D. R. (2020). Organizations cannot afford to stay silent on racial injustice. MIT Sloan Management Review, 61(4), 1-3.

SRD. (2021). Most valuable brands worldwide 2021. Statista.

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