Google has overtaken Apple as the world’s most valuable brand. Google’s brand value rose by 24% during 2016 (from $88.2 billion to US$109.4 billion) whilst Apple’s declined from $145.9 billion to $107.1 billion, according to the latest Brand Finance Global 500 report. Google last occupied the position of the world’s most valuable brand in 2011.
“Apple has struggled to maintain its technological advantage, with new iterations of the iPhone delivering diminishing returns, while the Chinese market is now crowded with local competitors,” says David Haigh, CEO of Brand Finance. “Apple has been living on borrowed time for several years by exploiting its accumulated brand equity. This underlines one of the many benefits of a strong brand, but Apple has finally taken it too far.”
Brand Finance, a valuation and strategy consultancy, annually determines the brands of thousands of the world’s biggest companies. Brands are first evaluated to determine their power/strength (based on factors such as marketing investment, familiarity, loyalty, staff satisfaction and corporate reputation).
Brand strength is used to determine what proportion of a business’s revenue is contributed by the brand, which is projected into perpetuity to determine the brand’s value. The results of this analysis are ranked, with the world’s 500 most valuable brands featured in the Brand Finance Global 500.