Google Overtakes Apple As Most Valuable Brand: Report
Apple has been replaced by Google as the world’s most valuable brand, according to new survey. Apple falls to second place after five years at number one, with Facebook, Samsung and Microsoft also making the top 10.
The Global 500 research, compiled annually by business valuation company Brand Finance, looks at how much a firm’s brand is likely to be worth in terms of money and power over the coming months, based on categories including emotional connection, financial stability and sustainability.
The report found that Google’s value had jumped 24% in the past year while Apple’s dropped 27% - allowing the search engine to take the top spot. Google’s brand value is estimated at $109,470m, while Apple is just behind at $107,141m.
Apple’s position has slipped recently because it hasn’t over-innovated to maintain an edge over rivals, claims David Haigh, CEO, Brand Finance said in a statement. “New iterations of the iPhone have delivered diminishing returns and there are signs that the company has reached a saturation point for its brand,” he said, adding, “Google remains largely unchallenged in its core search business, which is the mainstay of its advertising income.”
The report suggests, Apple iphone didn’t innovate enough for the company to retain its number one spot, despite reports the fact Apple sold more iPhones than ever before and set all-time revenue records for iPhone, Services, Mac and Apple Watch,” Apple CEO Tim Cook said in a press release.
Nevertheless, Apple has “failed to maintain its technological advantage and repeatedly disillusioned its advocates with tweaks when material changes were expected,” the report said.
On the other hand, Google had made attempts to move away from this approach in 2015 when it went through corporate restructuring and became a division of new parent Alphabet. Diversifying its brand portfolio helps Alphabet avoid excessive scale and divert regulatory attention, mentioned the report.
“Google remains largely unchallenged in its core search business, which is the mainstay of its advertising income,” the report said. The Google brand continued to benefit from Android, Chrome and YouTube adding brand value.
In December last year, exactly eleven months after flagging off its ambitious plan to bring free Wi-Fi at 400 railway stations in the country, Google finished installing free high-speed RailTel (RailWire) Wi-Fi at the 100th railway station in India. Through all the 100 railway stations where Google free Wi-Fi is live right now, it’s helping over 1 crore passengers stream HD videos, and not just check their emails and messaging apps.
So, while Apple seems to be slipping in its perception, Google’s capitalizing and strengthening its position, believe experts.
The report showed, technology brands continued to enjoy superlative brand value, followed by the banking sector, telecommunications, retail and auto.
E-commerce firm Amazon was ranked third, followed by telecom company AT&T, tech major Microsoft. The other companies in the top ten were, South Korean electronics giant Samsung, telecom firm Verizon, US-based retailer Walmart and social media company Facebook.
On what makes a brand most trustworthy, branding consultant Jim Stengel and author of “Grow: How Ideals Power Growth and Profit at the World’s Greatest Companies,” points out that the most trustworthy brands have created relationships with consumers through experiences that trigger a instinctive response. He added that when a brand focuses on its trust with intensity, apart from trust the brand gains in market-share, product premium and acceptance of new products as an automatic by-product.
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