After having been the most valuable brand in the world for five straight years, Apple will have to be content with coming second best to Google, according to a report by leading valuation and strategy consultancy firm Brand Finance. Meanwhile, Denmark-based Lego dethroned Ferrari as the most powerful brand.
The annual Global 500 rankings released by Brand Finance calculate the world’s most valuable and powerful brands. The report says that Google’s monetary value witnessed an overall increase of 24% to stand at $109.5 billion at the end of last year. On the other hand, consumer electronics giant Apple saw its value dip from $145.9 billion at the end of 2015 to finish 2016 at $107.1 billion, allowing Google to regain the position it had last held in 2011 before Apple ended its reign at the top.
The report attributes Apple’s fall to No. 2 spot as a result of not having lived up to its billing as an innovative company. “Apple has failed to maintain its technological advantage and has repeatedly disillusioned its advocates with tweaks when material changes were expected,” the study’s authors commented. They added that the California-based company had “over-exploited the goodwill” of its customers. With the Apple Watch not having yielded the high revenues it was expected to, and no new and innovative products in sight, the study laid into Apple’s inability to “demonstrate that genuinely innovative technologies desired by consumers are in the pipeline.” With the company losing its grip on customers and an ever-increasing list of competitors in the market, Apple has its task cut out.
As for Google, the search giant “remains largely unchallenged in its core search business, which is the mainstay of its advertising income,” the report added. For a company that is already witnessing a surge in revenues, an improved brand strength score played an equally important role in helping it pip the iPhone maker by $2.4 billion. The study indicated that Google’s brand strength score had gone up by two points, which will ultimately help the Silicon Valley giant to retain customers and command a better price for its services.
Google’s parent company Alphabet reported an increase of 22% in its fourth quarter revenue, largely on account of mobile search, video ads, and its foray into uncharted territories such as cloud computing. Quarterly revenues of $26 billion and a net income of $5.33 billion indicate that the company is well placed to consolidate its position at the top.
While tech companies maintained their status as the most valuable companies, banking, telecom, retail and automobile industries have fared well, too. Amazon took the third spot with its brand value pegged at $106.4 billion. Telecommunications conglomerate AT&T was sitting firmly at the fourth position at $87 billion while Microsoft and Samsung stood fifth and sixth with their values determined at $76.3 billion and $66.2 billion, respectively. New Jersey-based Verizon came seventh at $65.9 billion, followed by Wal-Mart and Facebook at $62.2 billion and $61.9 billion, respectively. Chinese multinational banking company ICBC rounded off the top 10 with a value of $47.8 billion.
P-Value February 27th, 2017
Posted In: P-Value News