Apple’s financial performance is another strength and it finds itself in a very good position. The company still has massive reserves, with over $140 billion in cash reserves. Keeping investors satisfied or investing in newer projects shouldn’t be difficult for the company.
Weaknesses
Perhaps, the company’s biggest weakness is its declining market share. Everyone knows that Apple creates trends, rather than following trends; however, the failure to capitalize in the latest smartphone market trends could cause the company a lot of trouble in the future. The same thing could be said about BlackBerry, as the company was left behind after it ignored the current market trends.
After Steve Jobs left the company, Apple’s management has been looking relatively shaky and Tim Cook’s appointment hasn’t generated many positive responses. Apple Inc. (NASDAQ:AAPL) is still going through a management change and several employees have or have planned to leave the company, which is why the new management will need to step up and take the right decisions.
Another possible weakness for the company is its target audience. Apple is known for its expensive products, which not many people can afford. Therefore, the company targets only a limited group of people. Companies like Nokia and Samsung, on the other hand, target mass audiences with different types of mobile phones depending on the budgets of different customers. If Apple manages to release a cheaper version of the iPhone, then it could finally target customers with lower budgets.
Opportunities
Apple, if it wants to, can benefit from numerous opportunities that are available to it. Unlike BlackBerry, Apple’s brand name is just too big to ignore and even though the company is late, it can still capitalize by following other manufacturers. Apple only has one product in its smartphone range; the iPhone. If the company can release different versions of the iPhone, then I don”t see why it can’t get back much of its lost market share. Reports are suggesting that Apple Inc. (NASDAQ:AAPL) is considering a Phablet, iPhones in different colors and even a cheaper version of the iPhone. If the company manages to do one of these, then there would be a lot to be optimistic about at Apple. Not only will this help the company improve market share in its existing markets, but it will also help Apple enter into newer markets.
Aside from smartphones, consumers are still waiting for the next big thing from Apple, which could be the iWatch or maybe the iTV. There have been several rumors and it looks like Apple will finally be releasing its next big thing, soon.
At Apple’s recent event, the company did unveil its latest iOS 7, which looks quite promising. Even though many claim that such a late change in software won’t be able to help Apple gain its lost market share, the new iOS is definitely something to look forward to as we finally get over Apple’s 6 year old operating system.
