According to Brand Finance’s Global 500 2017 report, Google is now the world’s most valuable brand with a value of US$109 billion, overtaking Apple.
The report states that Apple’s brand value had fallen 27 percent since early 2016 from approximately $145 billion to $107 billion.
“Apple has over-exploited the goodwill of its customers, it has failed to generate significant revenues from newer products such as the Apple Watch and cannot demonstrate that genuinely innovative technologies desired by consumers are in the pipeline. Its brand has lost its luster and must now compete on an increasingly level playing field not just with traditional rival Samsung, but a slew of Chinese brands such as Huawei and OnePlus in the smartphone market, Apple’s key source of profitability.”
As for Google, Brand Finance said it remains “largely unchallenged in its core search business, which is the mainstay of its advertising income”.
“It is perhaps fitting that the brand which enables the world’s biggest brands reach their customers and build their own brand equity (through search and advertising respectively) has itself become the world’s most valuable. Google remains largely unchallenged in its core search business, which is the mainstay of its advertising income. Ad revenues were up 20% in 2016, despite a fall in cost per click, as ad budgets are increasingly directed online. Desktop advertising remains far more lucrative than mobile, despite its prematurely diagnosed decline. Though mobile advertising has proved a challenge to monetize effectively, Google is persevering. For example 2016 saw the introduction of ‘bumper ads’, short, 6-second video ads better suited to the short clips that form an increasing part of media consumption on Google sites such as Youtube.”
Despite Brand Finance’s valuation, Apple’s Q1 2017 results showed an all-time record quarterly revenue of $78.4 billion, a $30 billion increase on its Q4 2016 results.
Amazon came in third with a brand value of $106 billion, a 53 percent increase from its 2016 brand value, followed by AT&T in fourth, Microsoft in fifth, Samsung in sixth, Verizon in seventh, Walmart in eighth, Facebook in ninth and ICBC as the tenth most valuable brand.
“Facebook continues to climb the ranks following 82% brand value growth, but has been outdone by China’s biggest tech brands.”
Overall, U.S. Companies dominated the 10 top brands.
Lego topped the list of the world’s most powerful brands based on Brand Finance’s Brand Strength Index (BSI).