Search gi­ant Google over­takes Ap­ple as the world’s most valu­able brand

The Hamilton Spectator - - BUSINESS - CHARISSE JONES

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).

AS­SO­CI­ATED PRESS FILE PHOTO

Google CEO Sun­dar Pichai speaks at an event in New Delhi, In­dia in Jan­uary.

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