Google on the Forbes World’s Most Valuable Brands List, Apple Comes Second
By Prempal Singh
The earth is seeing the fight of the technology giants and winner is taking the price of being world’s best brand. Not really unsurprising is the truth Google took the number 1 spot by exceeding Apple, when it was ranked the world’s best brand, according to leading valuation and strategy agency Brand Finance. Not only this, Google’s parent company, Alphabet Inc. too took the crown from Apple and became the most valuable company in the world. The Silicon area giant dropped to second place as both most valuable brand and company in the world.
The yearly Global 500 ratings, which calculates the most valuable and powerful brands across the globe, found that the search engine’s brand value rose twenty-four percent to $109. 5 billion in this year’s report, from $88. 2 billion last year.
The company “enables the planet’s biggest brands to reach their customers and build their own brand equity (through search and advertising respectively)”, the report said.
“Google remains largely unchallenged in its core search business, which is the pillar of its advertising income, ” that was up 20 % in 2016, it added.
On the other side, Apple’s brand value dropped 27% to $107. 1 billion from $145. 9 billion in the 2016 report; thus dropping its lead as the most valuable brand that it held for five years.
“There are probably 50 or 60 experts in this article Apple, ” said David Haigh, the CEO of brand name Financing. “Some are incredibly bullish, some are incredibly pessimistic. What pushes our valuation is a general opinion. We are reflecting the actual market says and the marketplace consensus is that the prospects of future proceeds are worse than they were last year or maybe the year before. ”
Haigh added: “Apple has battled to maintain its technical advantage. New iterations of the iPhone have shipped diminishing returns and there are signs that the company has reached a saturation point for the brand. ”
The Si valley giant lost the ground in 2016 because it failed to pioneer at the pace the customers expect, states the report.
“Apple has over-exploited the goodwill of its customers, it has did not generate significant revenues from newer products including the Apple Watch and cannot demonstrate that truly progressive technologies desired by consumers are in the pipeline, ” Brand Financing wrote. “Its brand has lost its luster and must now compete on an increasingly level taking part in the field not simply with traditional rival Samsung, but a slew of Chinese brands such as Huawei and OnePlus in the mobile phone market, Apple’s key supply of profitability. ”
In third place was the online retailer Amazon, which noticed a substantial jump off an estimated $36. several billion in its brand value last year the solitary highest gain among major companies — ranking the organization third, behind Apple and Google. If the company has another strong 12 months, Brand Finance predicts Amazon.com could become the planet’s most valuable brand in 2018.