INRODUCTION

Apple company is one of the world's most recognised company who majorly manufacturer
and developer of electronic goods and items such as cell phone, watches and many more
things. Apple is also dealing with the computer software as well. Basically, Apple was
founded by two college dropouts named Steve Jobs and Steve Wozniak. Now, Apple is one
of the world's largest technology-based company having 123000 employees. Apple is also
world's largest mobile phone manufacturer as well. According to stats of year 2017, it is
found that Apple gains first position and defeat Samsung by selling 77.3 million iPhone. This
company brought a revolution in the sea of technology and mobile phones.

Industry Served Consumer electronics, Computer Hardware,

Computer Software, Online Service

Headquarter Apple Campus, California, US

Area Served Worldwide
Revenue 25,849crores USD (31st march 2019)
CEO Timothy Donald ‘TIM’ Cool
Website www.apple.com

SWOT & PESTLE ANALYSIS of APPLE

The major study of apple's high performance is based upon external and internal factors.
Some of the studies proves that the macro and micro environmental factors would help to
lead of apple in the market. It is considered as the major factor continue with its success. Just
for the major purpose of study, these facts and figures would be carried out from different
case studies and from different published sources such as newspaper and magazines. It is to
be found that the swot analysis would find out its internal analysis and pestle analysis would
help to find out the external analysis of their success. The main purpose of swot analysis is to
increase the company's strength and remove it's weakness, pursue opportunities and avoid
potential threats as well. This factor can lead to major growth and success of the Apple and
also took the lead in the market by defeating many brands such as Nokia and Samsung.

SWOT ANALYSIS OF APPLE

It is a type of analysis in which we can find out the micro environmental factors which would
affect the market as well as the current situation of the market. There are many factors which
affects the situation are as follows

STRENGTHS
In the swot analysis, s stands for strength which helps to determine the basic strength of
company. As Apple is considered as the world's largest technology-based company, its basic
strength that Apple is one of the the leading innovators among other electronic brands. Apple

1
company is not only a leader in electronic items but also in manufacturing of mobile phones.
In fact, Apple has its own market such as iTunes media player for listening of trending songs
as well as other old songs, I life which is basically designed for editing, organising of photos,
music as well as movies. As we talk about the sales of the Apple, there is no comparison of
apple product with other products. In 2016, Apple company found a great sale of their mobile
phones and their accessories with a formation of total revenue of 416.62 billion. This shows
that the company has a major lead in the market and their products and accessories satisfied
their customers as well. Apple became a brand of brand after this year. In 2017, Apple
recorded an increment in their revenue up to 38% as comparison to year 2016. Now Apple
became a High brand recognition. As Apple invested a huge amount of approx. 4.5 billion in
their R&D department in 2013 to get access of market so closely so that the apple could find
out the best way to satisfy the customers and to know more about the demands of the
customers as well. This results that the apple took all control of their supply chains and
continuously conduct reports to their suppliers to enhance its brand value. This results that
the customers can built a strong trust on the Apple brand and also on their products. This
could help the company to become a High brand. In fact, there is also a major strength of
apple is their marketing team. The marketing team of apple done a fantastic job. They always
find out that what a customer wants and the basic needs of customers and the basic functions
that a customer needs in his Daily life. The marketing team always find out the customer
needs and always satisfy their needs by launching extra develop model for technology and
mobile each and every time. Also, Apple has a high quality of customers experience. Apple
always provide the best quality of the product with a high dimension technology so that
customers always attracted towards them.
Annual financial report of apple
2015 2016 2017 2018 2019
Sales 233,715 215,639 229,234 265,595 260,174
Revenue

COGS 140,089 131,376 141,048 163,756 161,782

Gross Income 93,626 84,263 88,186 101,839 98,392

Net Income 53,394 45,687 48,351 59,531 55,256

WEAKNESS
As Apple is considered as the world's largest technology-based company with world's largest
mobile phone manufacturer with many strengths but it also has many weaknesses. High price
is majorly considered as the biggest weakness of apple. Apple iPhone always has a high price
as compared to other electronic brands. In other words, we would consider Apple as an Audi
not Maruti. No doubt Apple provides a luxurious feature in their phones but their phones
have very high value which is not afforded by every middle-class person. Thus, study also
states that people would love to buy iPhone 8 over iPhone X because of high price factor.
This can cause Apple losses their customers because other electronic brands provide same
featured phone with cheaper rates. Also, Apple predictions was failing every time. This also a

2
weakness of apple. Steve Jobs predicted that big screen phones called phablets but customers
will love big screen phones which was never launched by Apple. In fact, Samsung took this
advantage and launched tablets or notes in 2011 to acquire the market. In fact, it is also found
many defects in their new products. Their new products didn't launch well as customers
found many problems with their new products. This could also find that in 2013, less sales of
their phones in Japan, Germany and Spain. Results, customers didn't respond to buy iPhones
and company losses his power to influence customers also.
High Price
Apple Cost Samsung Cost

iPhone XS Max with 1,24,900 Galaxy S9 Plus with 68,900

256GB 128GB

iPhone 11 Pro Max 1,41,900 Galaxy S10 Plus 87,900

with 512GB with512GB

Apple Market Share

Apple Samsung
India 2% 25%
US 39% 28%
Japan 56% 7%
Germany 28.2% 22.28%
France 25.59% 39.57%

OPPORTUNITY
As Apple is the world's largest technology-based company having a variety of their products
can also leads to increase in demand of their products in the market. Thus, high demand is in
the category of new launched Mac book as well power Mac products. There is also a new
upgrade to Mac OS X. This can lead to bring a High demand in the market as all customers
want to switch from Dell laptop to Mac book. In fact, customers also wait for the new iMac
line and iDVD. In fact, Apple has highest growth in communication device in the market as
the main moto of the company is to manufacture high end products. Their main focus is on
the service not on the price. In fact, Apple recorded 51% of global smartphones market share
in the final quarter of year. In fact, customers found that iCloud innovation will bring revenue
for the company. Customers found its opportunity for the future and also Apple can expand
their services through the help of iCloud.

3
World Wide Market Share of Apple
Period Apple
2015 22.09%
2016 15.8%
2017 19%
2018 11.7%
2019 13.9%

THREAT
Apple company is one of the world's most recognised company who majorly manufacturer
and developer of electronic goods and services but with very high price although other brands
manufacturers so this can cause a great threat to the apple company. Customers can get the
same features with less amount in other brands. So, this can create a major threat to the
company. In fact, Apple was also involved in a tax scandal which deforms its image in the
market and also affects it's sales revenue. Apple can also have a major threat by the rapidly
growth of the Android users and their different electronic products.
Worldwide 2015 2016 2017 2018 2019
sales to end
user by OS

Android 68.5% 75.6% 76.4% 77.32% 76.67%

IOS 20.5% 18.9% 19.1% 19.4% 22.09%
Window 9.9% 4.9% 3.4% 0.43% 0.15%
Other 1.4% 0.6% 1.02% 1.74% 0.21%

PESTLE ANALYSIS
Pestle analysis refers to a type of analysis which is most important and beneficial analysis for
the beginning of a new project. Pestle analysis is a kind of external macro environmental
analysis in which we can find out those factors which affects the company today or in the
upcoming days. Even managers also used this analysis to predict the upcoming growth of the
company at present or in future days. There are 6 factors which affects the company are given
below

Political factors
As Apple is the world's largest technology-based company having a world class employee but
the company always doesn't work by employees, sometimes it is also affected by the political
region where the company lies. In fact, major of the income of apple came from outside from

4
the US, this can't affect much the company in negative side. Sometimes, other situations also
affect the company reputation. As many of suicidal cases was to be recorded in last year's
where apple is included. In fact, statics also said that manufacturing of goods in China causes
less labour cost but due to the political opinion in that region causes high cost of their
products in China and sold as high rated in the market. This can lead to the cost variation in
different region if their products across the world. As Tim Cook also banned in Russia
because of his harsh approach towards their gay majority thus it also affects the company in
the market.

Economic factors
As Apple is considered as a world's largest technology-based company having a world class
employee with fantastic manufacturers but not all the time company shows growth in every
year. When the global recession came in year 2003, it affects the growth of apple. Customers
want to buy Apple products but they can't because they don't have enough money and also
the cost of their products is always high. This factor has a major impact on the growth of the
company. The graph shows a major decrement in sales growth in many regions just because
of the global recession. As we already discussed that the China labour affects the company as
there is an increment of labour wages which also causes their high rates and economic growth
of the company. Also, the inflation of US affects the growth of apple. The customers didn't
buy the product in US. This affects the company growth in economic way. In fact, the market
value of US dollar also increases rapidly which can cause the weaker of other currencies.
This can lead to higher price of products which isn't affordable for everyone so this also
affects the economic growth. This can lead to decrease of reputation in the market which also
consider as a economic factor which affects the company.

Social factors
As we know that Apple is one of the world's most recognised and leading company in term of
technology and mobile phones. As Apple is not just a company, it acts as a brand. If a person
owns a Apple iPhone and other products, it automatically considered as a great and luxurious
life. This creates a mindset that an apple owner has a high status in the market. This is just
because that Apple is not a company, it acts as a brand himself. It shows that you carry a
name, a brand with yourself if you carry an iPhone. This is the major factor which consider as
a social factor. A mindset was settled that an apple user is the one who has a higher class and
rich because Apple has extremely high value in the market. Also, the people increase their
usage of technology and mobile phone and apple is only a brand which provides a world class
technology as well as great features in according to satisfy the customers need as well as
customers satisfaction so that customers could easily use and socialise himself. This also
helps Apple for their growth.

Technology factor
As Apple is considered as a world's largest technology-based company having great mobile
accessories. The stakes of apple were always higher as compared to other industries and other

5
companies in terms of technology. As we know, Apple always provide the best technology to
their customers in order to fulfil their needs and provides a better satisfaction. As Apple took
and advantage in 2013 in China by making a deal with China mobile to launch iPhone 5 and
iPhone 5s. This could bring a successful launch in China and acquire the China market. In
fact, Apple also spent approx. 8.07 billion dollars in 2015 for their R&D department just to
carry out a survey to find out the mindset of customers and their needs and according to that
they develop their technology as well as mobile phones so that they can earn more profit and
found successful growth in the market. In fact, many cyber-crimes done day by day to unlock
their security systems but Apple provides a best security system in the world.

Legal factors
As Apple is the world's largest technology-based company and operating all over the world.
So, this creates a major legal aspect to the company. Apple always do the things in a proper
manner but sometimes legal actions are taken against him. Last year, a action was taken
against Apple by US government because they banned some parts which was used in their
phones but company continuously used that parts. So, the government took action against
Apple.
As Apple the application such as Apple music which was developed by the apple so these
comes under IP rights. So, this also a legal aspect of apple. In fact, Apple is also planning to
entering in the automobile sector as they announced to launch a car in year 2020 which will
be a electric vehicle. Company invested 6.04 billion dollars in R&D department for the same.
This also a legal aspect of apple.

Environmental factors
As Apple is the world's largest technology-based company and world's most recognised
company who majorly manufacturer and developer of mobile phones and sold across the
world. So many environmental factors also affect the company. The used and non-working
mobile phones and devices are disposed but there is no such solution for the disposal of
batteries and other parts. So, Apple stored them which increases the cost just because of
environmental impact. In fact, global warming is also increasing day by day due to which
Apple faces a problem of transoceanic shipping which also affects the company. Because of
apple iPhone manufacturing, China faces a pollution to manufacture Apple items which
considered as a major threat. The electricity cost also increases and all the devices works on
the electricity which also causes environmental pollution.

Micro environment
Micro environment is considered as the direct impact as well as immediate impact on the
company. It is interlinked to the company as we compared to the macro environmental
factors.
Some main factors of micro environment given below -

6
Customers
As we know Apple is one of the world's most recognised company who majorly
manufacturer and developer of electronic goods and items such as mobile phones. As to run a
company smoothly and profitable then the basic aim and main aim of the company is to find
out the basic needs of customers and to fulfil their needs. If the customer satisfied, then the
company will automatically grow and shows profit all the time. Same as Apple always find
the best way to satisfy their customers in terms of development and technology.

Competitors
As Apple is a worldwide company so their competitors in market are also huge. As Apple
manufactures iPhones and Mac book. Other companies like Samsung, Motorola also made
these types of products. So, they provide a large competition to the apple as they provide the
same basic and developed technology to their customers at cheap prices so they provide a
huge competition to Apple. The main risk of apple is Samsung because they also provide best
quality and trustable items to their customers with a vast range so this can threat the apple to
be the best in the market.

Employees
It is also a major factor which is considered Apple. As Apple is a world's largest technology-
based company having 123000 employees but the company provided a world class facility to
their customers to be in the apple. As Apple provide variety of facilities to their employees so
that their employees can work for them and help Apple for more growth. An employee is the
only part that Apple can trust because they know their employees are trustable and provide
the best things and their time to Apple. As return, Apple provides incentives to them with
huge amount as salary.

Shareholders
As Apple is the world's most recognised company who majorly manufacturer and developer
of electronic goods and items such as mobile phones and Mac books but the company is
majorly hold by their shareholders. As Apple is considered as a big company because they
invest a lot of money for their R&D department and sales department and this amount came
from shareholders. Without their permissions and acceptance, Apple couldn't invest and
didn't do anything like other companies. So thus, Apple found major role of shareholders I'm
their growth and share their profit with them.

Suppliers
As Apple is the world's most recognised company who majorly manufacturer and developer
of electronic goods and items such as mobile phones and Mac books and world's largest
company because of their products. As the suppliers of the apple provides the parts on time
so that the manufacturing of their mobile phones and accessories so that the company sold
out and got profit. This helps the apple to grow easily because the apple got their parts on
time by their suppliers so this helps for the growth of apple. The major rental suppliers of
apple are local suppliers of US and China vendors who majorly dealers with mobile phones.

7
Media
Media also helps the company to grow easily as the apple iPhone ads telecast on the social
Media as well as by other media mediums so that Apple done its promotions easily. The
apple company use a huge amount on media also so that more people could find out about the
company and their products so that the company can sell their more products and gain more
products. This helps the apple to grow more.
VALUE GAP
Currently Apple company lies in the high-income bracket by the success of iPhone 10 XS
Max but recently Apple launched a new developed product iPhone 11 Pro Max which leads
to higher growth of the company as the iPhone 10 XS Max range lies in1-1.10 lakh but the
iPhones 11 Pro Max lies in range of 1.10-1.42 lakh. Basically, this model is designed to fulfil
the customer needs which is not fulfilled by 10 XS Max. So, the company design and develop
to provide best quality to their customer. There is some basic value gap between both the
series model: -
1). iPhone 11 Pro Max has triple camera but 10 XS Max has only two cameras.
2). iPhone 11 Pro Max has A13 Bionic Chip performance but 10 X Max has Apple A12
Bionic Chip performance.
3). Battery of 11 Pro Max is 3969mAh but 10XS Max has only 3300 mAh battery.
4). iPhone 11 Pro Max has 12mp but 10 XS Max has only 7mp.
5). iPhone 11 Pro Max has iOS v13.0 but 10 XS Max has iOS 12.0.

8
VALUE GAP