Apple SWOT Analysis

By John Dudovskiy
July 11, 2023

SWOT is an acronym for strengths, weaknesses, opportunities and threats related to organizations. The following table illustrates Apple SWOT analysis:


1.      High quality, design and performance of Apple products and services

2.      Brand value of more than USD 3 trillion

3.      High profit margin

4.      Solid financial position of the business

5.      Sophisticated supply-chain infrastructure


1.      Lack of innovation

2.      Decreasing sales of iPhones

3.      Higher prices than competition

4.      Incompatibility of Apple products and services with other products and services for users

5.      Limited customazation options of products


1.      Further increasing concentration on Services business segment

2.      Increasing focus in research and development

3.      Product diversification

4.      Formation of strategic partnerships

5.      Increasing focus on green technology


1.      Quality problems with negative effects on sales and Apple brand image

2.      Intensifying competition from China and India

3.      Being found to have infringed on intellectual property rights

4.      Reputation damage due to the tax scandal

5.      Disruptive innovation by competitors

Apple SWOT analysis


Strengths in Apple SWOT Analysis

1. High quality of Apple products and services in terms of design and performance is the main strength of the company. Co-founder and late CEO Steve Jobs never compromised design and functionality because of the cost of raw materials and manufacturing. The same principle persists to this day. The tech giant pursues differentiation business strategy and effectively differentiates its products and services with high quality, design and performance.

Moreover, highly sophisticated Apple ecosystem plays an instrumental role in maintaining brand loyalty and consequently sustaining market share in the global scale. Specifically, third-party products are not usually compatible with Apple products and all products belonging to Apple portfolio work well with each-other. Thanks to services such as iCloud, airplay, and airdrop, you can start a task in on one Apple device and continue it on another and there is no need to download or install anything.

2. Apple is the first publicly traded company to reach USD 3 trillion market capitalization.[1] Apart from Apple, there are only five global companies with market capitalization of more than USD 1 trillion.[2] Apple has been listed by Forbes as the most valuable brand in the world with the brand value of USD 241,2 billion[3], while Interbrand estimates Apple brand value as high as USD 482,215 billion.[4]

Strength of Apple’s brand image and value is effectively reinforced by a combination of factors such as a large customer base in the global scale and high profit margin. High brand value grants substantial advantages to the multinational technology company in terms of leveraging the brand to add new products and services into the portfolio. Moreover, high brand equity gives the company considerable bargaining power in negotiations with vendors, manufacturers and distributors.

3. Apple maintains an exceptionally high profit margin compared to industry average. Industry analysts note that “Apple isn’t here to sell the most of anything; its overarching goal is simply to generate the greatest possible profit”[5]. The company’s gross margin for 2022, 2021 and 2020 amounted to 43,3%, 41,8% and 38,2% respectively.[6]

As illustrated in figure below, the net profit margin of the tech giant has stayed well above 20% for the last 10 years and it equalled 24,56% for 2020. High profit margin can allow the business to maintain its operations in times of economic uncertainties thanks to cash reserves.


Apple SWOT Analysis

Apple Inc. net profit margin chart[7]


4. Apple is the world’s largest IT company by revenue. In 2022, the multinational technology company generated net sales of more than USD 394,32 billions with a total gross margin of USD 170,782 billions. As of September 2022, the tech behemoth had cash, cash equivalents and unrestricted marketable securities, which totaled $156.4 billion[8]. Apple has a strong financial base to engage in research and development further contributing to its traditional competitive advantage of innovativeness and superior design. Moreover, thanks to its strong balance sheet, Apple could weather Covid-19 storm better than most other global companies.

5. Apple’s supply-chain operations are widely acknowledged as one of the best in the world. Apple supply chain best practices include data synchronization between the central warehouse and its own stores and customers, and outsourcing manufacturing and as a result reducing the manufacturing cycle time. Moreover, sophisticated supply-chain management practices allow the company to facilitate its complex global operations with no or least disruptions.


Weaknesses in SWOT Analysis of Apple

1. It can be argued that Apple ceased innovating since the departure of late founder and CEO Steve Jobs. Specifically, since the departure of Steve Jobs in 2011, Apple introduced only two new product lines – Apple Watch and Home Pod. Some business analysts note that while new CEO Tim Cook has offered lip-service to the idea that Apple’s next great innovation is right around the corner, he has abandoned Jobs’s idea that Apple needs to innovate its way to success.[9]

2. Arguably, Apple can be criticized as a single-product company for its over-dependence on iPhones. The world’s largest IT company by revenue generated 56% of its revenues in Q1, 2023 from the sales of iPhones alone. Furthermore, in Q1, 2023 iPhone sales declined by 8,17% YoY despite the fact that the company launched its new iPhone 14 lineup during the same period. It has been noted that “the increasing competition from Chinese manufacturers such as Huawei and Xiaomi – but also from Google, LG and Samsung – has eroded the once dominant position of Apple in the smartphone market”[10]

Apple Inc. Report contains a full version of Apple SWOT Analysis. The report illustrates the application of the major analytical strategic frameworks in business studies such as PESTEL, Porter’s Five Forces, Value Chain analysis, Ansoff Matrix and McKinsey 7S Model on Apple. Moreover, the report contains analyses of Apple leadership, organizational structure, business strategy and organizational culture. The report also comprises discussions of Apple marketing strategy, ecosystem and addresses issues of corporate social responsibility.

[1] Malik, A. (2023) “Apple is now the first publicly traded company to close above a $3 trillion market value” TechCrunch, Available at:

[2] Daly, L. (2023) “The Largest Companies by Market Cap in 2023” The Motley Fool, Available at:

[3] The World’s Most Valuable Brands (2020) Forbes, Available at:

[4] Best Global Brands 2022,  Interbrand, Available at:

[5]Savov, V. (2016) “Apple’s grand unifying strategy: high profit margins” The Verge, Available at:

[6] Annual Report (2022) Apple Inc.

[7] Source: Macrotrends (2023) Available at:

[8] Annual Report (2022) Apple Inc.

[9] Cohan, P. (2019) “3 Signs That Apple Has Lost Its Innovation Mojo” Forbes, Available at:

[10] Bris, A. (2019) “What is really eating apple – and why Steve Jobs would not be doing a lot better” IMD, Available at:

Category: SWOT Analyses