For the past 5 years, Apple was reigning as the undisputed most valuable brand among the various tech companies. Apple successfully rolled out iPhones and iPads with exorbitant cameras and thinner profiles. However, this year, Apple isn’t able to retain its spot as Google successfully became the most valuable brand according to the latest reports.
Apple’s brand value lost 27% in the past one year. Global 500 2017 report from Brand Finance reveals that Apple’s value has reduced to $107 billion. The brand value of Google has gone up to reach $109 million as it became the most profitable brand in the world. Google was highly valued in 2011 and for the first time in five years, Google has improved itself to grab on to the first spot. Following Google and Apple, Amazon, AT&T, and Microsoft became the top valuable brands.
Apple’s products were consumed by the people like no other in the past. The innovative products completely revolutionized the smartphone and tablet industry. However, that is not the case anymore. The loyal users of Apple are finding it difficult to pay a higher price for Apple products when they can get similar products for a much lower price elsewhere. Apple had hoped that the Apple watch would become the most loved product of this year. The consumers were not as much interested as Apple in the brand new Apple watch.
When Apple launched iPhone, it was a pioneer product in the smartphone industry. Now, the competition for Apple has grown stronger as Google started hardware production as well. Apple has not made any new announcement about any new innovative product of the year and this has reduced the interest in Apple products.
Recent reports from Apple, however, shows that iPhone has not lost its market. The holiday season brought good news for Apple as the company earned $17.9 billion in the first fiscal quarter by selling iPhone 7 and iPhone 7 Plus. The net income was down from $18.4 billion of last year, but the revenue jumped to $78.4 billion. The results of Apple are much better than the expectations of the analysts. Apple’s share reached the value of $3.36 per share.
Alphabet, the parent company of Google reported an amazing income of $5.33 billion as the shares reached $7.56 per share in the last quarter. The analysts estimated a better value, but Alphabet’s revenue increased by 22% reaching $26 billion. The major contributors to the growth were video ads, mobile search and cloud computing technologies. Google is the undisputed leader when it comes to internet search and a huge portion of its income is from advertising revenue.
In the brand report, the technology companies topped the list grabbing the top 5 positions. The banking industry came next to the tech industry with some banks being recognized as the most lucrative brands. The telecom sector followed the suit beating the retail and car brands. Lego became the most powerful brand in the world beating Disney, as it is popularized by the Lego Movie.