• Strengths

I. Strong Brand Recognition and Loyal Customers - Apple's reputation extends to its App Store, attracting new
customers with its sleek design and recognizable appearance, making the iPhone one of the world's most
popular and purchased devices.
II. Top Technology - continues to innovate products like iPhones, with their cutting-edge designs and user
interfaces.
III. Proficient Research & Development - Apple invests $26.25 billion in R&D, focusing on product designs,
customer needs, and market trends. Liam project focuses on disassembly technologies for recycling specialty
materials.
IV. Expansion in services for Top-quality experience for its customers - Apple's iOS operating system, accounting
for 20% of total revenue in FY 22, offers a diverse range of apps for personal and professional use.
V. Financial Strength and Profitability - Apple, with a market capitalization of over $1 trillion and an annual net
income of $50 billion, is the first American technology company to achieve such heights.
• Weaknesses

I. High prices of products - customers switching to imitations

II. Limited Promotions & Advertisement - limited promotional funding and a 68% drop in digital advertisement

expenditure in 2019.

III. Lack of new innovative products in recent years - recent product lineup incorporates features from previous.

IV. High degree of litigation - fined $19 million in October 2022 by the São Paulo State Court for removing chargers

from iPhone packages

• Opportunities
I. Buy Now, Pay Later Service - Apple Pay allows users to apply for loans ranging from $50 to $1,000
for purchases made via iPad and iPhone, allowing for four six-week payments without additional
charges
II. Consistent Customer Growth - market leader with a 92% customer retention rate, leverages the
internet's power to attract new customers and partners
III. Lack of sustainable and eco-friendly technology - incorporating eco-friendly products could boost
sales and positively impact the environment
IV. Utilize Artificial intelligence - Apple acquired Regaind and DeskConnect in 2017, integrating
intelligent search into iPhone app and automating tasks. Focusing on AI, Siri was developed.
V. Expansion in Indian Market - CEO Tim Cook is optimistic about India's growth, citing record Android
to iOS device adoption since Covid, expanding online presence, opening retail locations, and
offering financing options.
• Threats
I. Tariffs imposed by the US on China - increase import costs, impacting Apple's production costs and
product prices, accounting for 14.5% of its $274 billion revenue.
II. Competition - increasing competition from Google, Huawei, and Samsung, requiring constant
product introduction and pricing strategy reevaluation to maintain market leadership.
III. Backdoor Mechanism - significant threat from government agencies accessing user data on iPhones,
creating security holes that could expose users' private information.
IV. Mark Zuckerberg criticized the iPhone App Store's monopoly - criticized for charging a 30% cut for in-
app purchases made through its app store, as this is a substantial commission for small businesses
or app developers.