Strengths and Weaknesses Comparison of Apple Inc., Google Inc., and Hewlett-Packard

Apple Inc.

Google Inc.

Hewlett-Packard Company


Strong brand image provides an edge over competitors- Brand ranked 20th position in 2009 from 24th in 2008 and 35th in 2007
- In 2008, brand value improved to $15,433 from $13,724 million in 2008 and $11,037 million in 2007
- April 2010, the company sold 300,000 iPads on the first
day of its launch in the USRobust financial performance strengthens investors’ confidence and provides capital for future growth avenues- Total revenue
increased to $42,905 million in FY2009 from $24,578 million in 2007, annual growth rate (CAGR) of 32.1%
- Operating profits of $11,740 million in FY2009, $8,327 million in FY2008 and $4,407 million in FY2007
- Operating profit margin has improved to
27.4% in 2009 from 22.2% in 2008 and 17.9% in 2007
- Net income
margin improved to 19.2% in 2009 from 16.3% in 2008 and 14.2% 2007Focused R&D driving innovation and consolidating its market position
-R&D expenditure was $1,333 million in 2008, $1,109 million in 2008, and $782 million in 2007
- Focused on future development of its existing Mac products
Significant brand image- Brand valued at $100 billion making it the world’s first $114,260 million brand
- Ranked Google 7th in 2009, up from 10th in 2008 in Interbrand’s Top 100 Global Brands
- Interbrand valued Google at $31,980 in 2009Strong infrastructure base- Advertising revenues from Google websites accounted for 67% of its total revenues in FY2009, compared to 66% and 64%, respectively in 2008 and 2007
- Revenue contribution of $15,722.5 million in FY2009, $14,413.8 million in FY2008, and $10,624.7 million in FY2007
- IT assets base of $3,868.3 million in FY2009, compared to $3,573.5 million in FY2008Robust financials

- Revenues increased from $16,594 million in FY2007 to $23,650.6 million in FY2009
- Annual growth rate (CAGR) of 19% for 2007-09
- Net profit margin increased from 30.6% and 25.3% in FY2007 to 35.1% and 27.6% in FY2009
- FY2009, cash and cash equivalents was $10,197.6 million compared to $6,520.4 million in FY2007
- Stockholders’ equity increased from $22,689.7 million in FY2007 to $36,004.2 million in FY2009

Strong market position- Took market leadership from Dell in global PC market in 2006 and kept position through 2010
- 2010, 18% market share of global PC market followed by Dell (13%), Acer (12%), and Lenovo (10%)
- Shipped approximately 64 million in PCs in 2010Successful inorganic growth- Merger with Compaq Computer in 2002 resulted in revenue increase from $48.8 billion to $87 billion
- Acquisition of Mercury Interactive in 2006 valued at approximately $4.5 billion
- Acquisition of EDS valued at $13.9 billion made HP leader in IT services market
- April 2010, acquired 3Com, valued at approximately $2.7 billion
- September 2010, acquired Fortify Software for approximately $2.35 billionSignificant brand recognition- Ranked 10 in the list of top 100 Best Global Brands 2010
- Valued at $26,867 million in 2010, increase of 12% over 2009
- Future 500 ranking, HP ranked 10th in 2010


Patent infringement lawsuit may affect financial condition and operating results- 2010, Nokia filed a revised suit against Apple claiming Apple infringed Nokia’s patents on almost all mobile phones, portable music players, and computers
- Motorola Mobility filed complaints against Apple for patent infringement of certain productsProduct recalls may harm Apple’s reputation and add significant warranty and other expenses- 2010, antenna problems in iPhone 4 smartphone demands for product recall
-2008, Ultracompact USB Adapter Exchange Program because the adapter’ metal prongs broke off and remained in power outlet, causing risk of electric shock
Lack of product integration- Company has focused more on launching new products than integrating products
- Many new products, but few of them have anything in common with the others
Lack of significant presence in various market segments- Company’s portfolio of offerings lack significant software product or management consulting services
- Way behind competitors, including Apple, Samsung Electronics, and Acer
- Google Android and Chrome OS capture 36% of the smartphones and tablet-style devices by 2015. Apple’s iOS with 35%
- May affect competitiveness and make it dependent on othersDATA ACQUIRED BY DATAMONITOR
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