Search giant Google overtakes Apple as the world’s most valuable brand
Apple, the most valuable brand in the world for the past five years, has yielded the top spot to Google, according to a new report from Brand Finance.
The iPhone maker’s brand value has plummeted 27 per cent to $107 billion (all figures US) since the start of last year, according to Brand Finance’s Global 500 2017 report.
Google’s brand, however, is now worth $109 billion, making it the most lucrative in the world. It is the first time the search giant has topped the list since 2011.
Google’s place as the dominant search engine safeguards its stream of advertising revenue, which increased 20 per cent last year. The uptick occurred even though marketers are paying less for each “click” of the keys by those searching online.
Apple meanwhile, is losing its grip on consumers. The Apple Watch has not been the moneymaker the company had hoped for. A company that was once renowned for its innovation is not signalling that it has another unique product coming any time soon. And Apple’s list of competitors in the smartphone space is continuing to grow, the report says.
Still, Apple is the second-most valuable global brand, followed by Amazon, AT&T and Microsoft. And this week, Apple showed that its signature iPhone still has the potential to be a profit machine, buoying investors.
Robust sales of the iPhone 7 and iPhone 7 Plus over the holidays led to the tech giant posting first-quarter earnings of $3.36 per share, and record-setting revenue of $78.4 billion, a three per cent uptick that exceeded Wall Street’s expectations. Apple shipped 78.3 million iPhones during the three month period. Analysts had predicted earnings of $3.22 per share.
The increase followed three consecutive quarters in which iPhone shipments dipped, and the first fiscal year in over a decade that Apple experienced a drop in sales.
Meanwhile, Google’s parent company Alphabet reported this month that its fourth quarter revenue soared 22 per cent, largely propelled by mobile search, video ads, and its expansion in newer business lines like cloud computing. The company posted revenue of $26 billion during that three-month period. And it reported net income of $5.33 billion, or $7.56 per share.
While technology was dominant among the world’s most valuable companies, the banking industry was next in having the most lucrative brands, followed by the telecom sector, retail and the car industry.
Brand Finance said RBC is the most valuable Canadian brand, ranking 106th. Among Canadian brands, it is followed by TD (107), Bell (144), Scotiabank (166), Bank of Montreal (188), Tim Hortons (192) and Rogers (218).
Google CEO Sundar Pichai speaks at an event in New Delhi, India in January.