SWOT ANALYSIS:

STRENGTH
Brand: Brand is all-important. Apple is one of the most established and healthy IT brands in the World, and has a very loyal set of enthusiastic customers that advocate the brand. Such a powerful loyalty means that Ample not only recruits new customers, it retains them i.e. they come back for more products and services from Apple, and the company also has the opportunity to extend new products to them. Robust Financial Performance: Apple has an enviable position in the minds of the financial world. Apples robust financial performance is strength as the growth in capital allows for continued growth. Strong Designs & Quality: Apple has had a very strong public association with high quality design for most of its history. Its first home computers, the Apple ][ (pronounced "Apple 2") series in the 1970s and 1980s, do not appear elegant from a modern perspective, but they were breakthrough at the time for their ease of use and setup, at a time when competing computers had to be literally built by hand from a kit of parts. Apple computers and electronics are frequently designed to be ahead of the curve of contemporaneous public opinion. The iMac line of computers was the first home computer to omit a floppy drive; this was considered by most observers to be mandatory, but they were proven wrong by the success of the model. Even failed Apple products show innovative design planning, such as the Macintosh Cube, a physically small desktop computer which paved the way to the more successful Mac mini-line. Focused R&D: Apple has a focused R&D driving innovation and consolidating its market position. Apple is spending $ 2.6 billion in R&D as per 2012 company report (quarterly).

Weakness:
Product Recall: Products recall may harm Apples reputation and add significant warranty and other expenses. Patent: Patent infringement lawsuit may affect financial condition and operating results High price: Apple is the only one making their hardware and so it sets the price for it. Comparatively, Apple products are priced high as that to the competitors.

Profitability depends on Global Economy: Apple acknowledges that its profitability is dependent on the global economy. Economic downturns can have a significant negative effect on the company, and fluctuations in foreign currencies make profit predictions in foreign markets uncertain. Dividends rarely paid: Apple declared a dividend recently (march 2012), but the last time it was paid was in 1995. They rarely buy back the stocks.

Opportunities:
Advertising Platform: Apple is expected to introduce a new advertising platform for the iPhone, iPhone touch, and iPad. The introduction of this advertising platform represents an opportunity for new revenue sources. Growth in Smart Phone and tablet market: Strong growth in smart phone and tablet market will boost Apples revenue. Technology:
With advancement in technology Apple will be able invent new products and create new market segment. Joint Venture: Good relationship through joint venture with other big companies coupled to bring out new hits.

International Expansion:
More International expansion to Asian Countries.

Increased Demand:
Increased demand of online music and other applications like cloud based service.

Threats:
High Level of Competition:
The biggest threat to IT companies such as Apple is the very high level of competition in the technology markets. Being successful attracts competition, and Apple works very hard on research and development and marketing in order to retain its competitive position. The popularity of iPod and Apple Mac are subject to demand, and will be affected if economies begin to falter and demand falls for their products

Lawsuits:
Apple is involved in several legal actions, including lawsuits alleging patent infringement and antitrust violations. Many of the suits are from smaller companies, but notable plaintiffs include Nokia. These lawsuits present a threat because of the possibility of unfavorable judgments and the ongoing costs associated with legal defenses.

The rising Android tide:

Apple's iPhone is undoubtedly a success that won't be undone so easily. But in recent months, Googles Android Platform has been gaining market share. On many fronts, it's actually a fine alternative to the iPhone. If Google can keep that momentum going and continue to appeal to consumers through solid design and application availability, we might watch the two tech giants battle it out. Apple would be the front-runner, but Google has a shot at supplanting iPhone OS as the most-viable touch-screen operating system on the market. HP and Dell could start building nice computers: Part of the appeal of Apple's products is their design. Consumers looking for devices that reflect well on them will find that from Apple. But so far, they have been unable to find similarly well-designed products from HP or Dell. Recent design choices have shown, both companies are doing a better job at offering computers that can compete with Apple. But they need to do more. With a greater reliance on computer design, HP and Dell might finally be able to turn the tide and for once, best Apple on design. If that happens, Apple should be concerned -- it's one of the company's core selling points. Windows Phone 7: Microsoft is directly targeting Apple's iPhone with Windows Phone 7. Absence of Steve Jobs: There is a big question how the new CEO can handle Apple.

BCG Matrix Apple:

Apple is a very successful Company and renowned world wide for its product innovation and market leader in its field. Some of its Successful products are below Macintosh 128k, iMac, iPod,iPhone, Apple II, iTunes Music stores, Mac Os X, Laser Writer, Titanium power book G4, Quick Time, iMac core Duo, iLife, iBook, Airport, Mac Mini, Final Cut Pro, Power Mac G5, Apple Script, The Apple decal, Fifth Generation Ipod, Mac software

Stars:
I have categorized iPhone and Ipoid in star category which means they both need further investments in product development and there are greater opportunities available in market for growth. Latest reports reveals that the growth rate for iPod is currently 28% and for

those of iPhone is 48%. Apple enjoys 60% of market share in iPod than its closest rival Scandisk in market. In iPhone, Apple is not market leader but has 28% market share where manufacturer of Blackberry RIM has 41% market share. So, Apple is a challenger for RIM

Cash Cow:
I have placed Apple iTunes digital downloading softwares as cash cows. Apple clearly is a market leader in this segment with 82% market share , its closet rival Napster with 3% share. The huge difference 79% shows that Apple has outplayed all its counterparts in this segment. Growth rate for iTunes is 7.6% which indicates that it is stable and mature product and it does not need further investments for product development by Apple Inc.

Question marks:
I have placed Mac Os X and Mac software in this category. There is a possibility to capture further market share if provided with funds for product development and innovation, otherwise they will fall in to Dog category. Apple enjoys 31.7% growth rate for Mac Os X and .09% market share. For Mac software market share is only .01%.

Dogs:
Apple Macs could be considered under this category as Apple is not a market leader in this segment and does not enjoy majority percentage of market share and there are few changes in capturing further market shares even further investments in products are made.