SWOT Of Apple I phone

Strength:Strength 1:

Customer Loyalty combined with closed system

Apple has now expanded it closed system where it has a full range of apps, software and products that are interlinked and support each other’s. Launching of ITV is also helping to expand the eco system. As a result it is the major strength of Apple IPhone to have a strong customer loyalty and increases the firms competitive advantages.

As compare to competitors have a unique apps, software and security system it made the apple to be better than its competitors.

Strength 2: Brand Reputation

Highly innovative, well designed, IOS, well-functioning products and sound business performance were the major factors for Apple Brand reputation. Apple Brand is valued at $76.5Bill and is the second most valuable Brand. Because of all these innovative factors stands apple strength above all and gaining the customers satisfaction over their competitors.

Weakness

Weakness 1: High Price

Apple’s products cost much more than its competitors devices. As compared to the strongest rival Samsung, Apple has the higher price on it phone series. The price range of the iPhone is almost higher than all of the mobile phone. When there’s such a fierce competition, Apple products price becomes a weakness. So, this weakness will lead consumers to find another product with different quality

Weakness 2: Incompatibility with different OS

Apple IPhones and products all comes up with the IOS and OS X which are quite different and cannot run in OS or others Microsoft devices. Due to such differences, both in software and hardware, users often choose to stay with their accustomed software and hardware like Microsoft or Android. So, with the different and user-unfriendly software Apple might loss a lot of customers.

Opportunity

Opportunity 1: High Demand of IPhone:

Demand of iPhone and other products of Apple are increasing everyday. Next iPhone will expected to sales more, and will strengthen firm’s competitive position.

Opportunity 2: Strong growth of mobile advertising market

Apple has developed iAd advertising platform, which allows advertising on Apple iPhone, iPad and iPod touch. The growth of mobile advertising market is an opportunity, which could be further seized upon. This will allow the iPhone to grab a more opportunity in the global market of IPhone.

Threat:

Threat 1: Rapid technological change.

One of the most severe threats Apple and the other tech companies are facing is rapid technological change. Companies are under the pressure to release new products faster and faster. As, a result the company should undergoes more innovation and changes to stay in the market and so to for Apple IPhone.

Threat 2: Rising pay levels for Foxconn workers

Pay levels for Fox Conn’s workers already rose 3 times from 2010 to 2012. Foxconn is the main manufacturer of Apple products and the rising pay level for Fox Conn’s workers will likely raise the prices for Apple products. So minimizing the level of pay has become the major threat for Apple Corp.

SWOT MATRIX

SWOT MATRIX FOR APPLE IPHONE:

Strength

• Customer loyalty combined with closed system

• Strong Brand Reputation

Weakness

• High price

• Incompatibility with IOS

Opportunity

• High demand

• Strong Growth of mobile advertising market

Threats

• Technology change

• Rising pay levels for Foxconn workers

Apple has come up with the closed system with lots of apps, user-friendly software and a very strong privacy system. This is the major strength of Apple to increase the customer’s loyalty. As a result the higher demand of IPhones will attracts the larger sales of IPhones Similarly, strong Brand reputation of IPhone will be very easy in mobilizing the growth of advertising market of IPhones.

The firms can convert its weakness of higher price into at least a little bit lower than it used to be. That will directly result in increasing the sales volume of the IPhones because of it lower cost and make a lot more compatibility with Microsoft or other third party software will directly minimize its weakness and that will result in its strengths.

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