Iphone Threats (Swot) Essay

1684 words - 7 pages

Apple Inc. Management project

Apple Inc. has stakes in several areas of technology including PCs, tablets, cell phones, portable media devices, and digital music distribution. There are threats from each area that Apple has to constantly monitor and overcome. Apple uses its own OS and on its own hardware which has both advantages and disadvantages. Since Apple has more control using this method their products are high-quality or sometimes referred to as premium. However there is less room for customization and the consequences can be seen on several of their product lines.
One example is in the wireless market, where new cell phones are being released frequently. Apple has the iPhone ...view middle of the document...

On top of that some Android phones are cost less than $199. Apple fought this by releasing previous models at lower prices but that does not always guarantee that the previous model is as good as Android phones at a similar price point. You can only buy applications for the iPhone only from the “Appstore” and those have to be preapproved by Apple but on a majority of Android phones you can install apps that aren’t in the Google Play Market through a manual process called side-loading. This and the additional customization features the Android OS allows, gives the user more freedom. Recently Microsoft announced that it will be launching a new OS optimized for the current smartphone market. This creates a potential threat to Apple as well.
In the tablet market the Apple iPad faces a very similar situation. Android is also available on tablets made by various manufactures just like smartphones. They too have varying screen sizes with removable storage, among other important features such as USB ports and HDMI output (connects to TVs). While Apple has adapters it is just not as seamless as some would like. As with the iPhones the iPad is a premium product and starts at $499 with storage tiers increasing at $100. In the past year or so companies like Amazon and Google have released successful tablets costing as low as $199 with smaller screen sizes that are much more affordable. Microsoft recently launched Windows 8 which is being featured on tablets and laptops, some that turn into tablets too.
Apple also has the iPod product line that revolutionized portable media. However dozens of companies have made similar devices that are often cheaper and provide other options such as removable storage. Competitors are not the only threat the iPod, cell phones are too. Today nearly all cell phones have a built in media player and since the cell phone goes where ever someone goes it is easier to listen to music or watch videos on their phones. Therefore the cell phone is the biggest threat to iPods because they can double as a media player and are more convenient.
In the PC market Apple uses their Mac OS. The OS is placed on their configured hardware only. Again their PC’s are premium products that have a higher price tag. Apple doesn’t have much market share because Window’s can be put on almost any PC which depending on the PC can be much lower in cost. The low cost of buying a Window’s based PC over Mac PC’s has given Microsoft and its partners such as Dell, HP, Toshiba, ASUS, IBM, and many others the majority of the market share and is preferred in most businesses and corporations. However Macs are preferred in entertainment industries like music, video, and photo editing. Apple will have to adapt in order to gain a higher market share.
Apple has a digital distribution service, iTunes that has quite a bit of competition. Amazon, Rhapsody, Wal-Mart, and others offer music downloading services that sometimes cost less or provide a different...

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