Apple has overtaken Amazon and Google to reclaim the title of the world’s most valuable brand for the first time since 2016, according to the latest report by Brand Finance – the world’s leading brand valuation consultancy.
Apple has the success of its diversification strategy to thank for an impressive 87% brand value increase to US$263.4 billion and its position at the top of the Brand Finance Global 500 2021 ranking.
Under Tim Cook’s leadership, especially over the past five years, Apple began to focus on developing its growth strategies above and beyond the iPhone – which in 2020 accounted for half of sales versus two-thirds in 2015.
The diversification policy has seen the brand expand into digital and subscription services, including the App Store, iCloud, Apple Podcasts, Apple Music, Apple TV, and Apple Arcade. On New Year’s Day alone, App Store customers spent US$540 million on digital goods and services.
Apple’s transformation and ability to reinvent itself time and time again is setting it apart from other hardware makers and has contributed to the brand becoming the first US company to reach a US$2 trillion market cap in August 2020.
With rumours resurfacing that Apple’s hotly anticipated Titan electric vehicle foray is underway again, it seems that there is no limit to what the brand can turn its hand to.
David Haigh, CEO of Brand Finance, commented: “Steve Jobs’ legacy continues to flow through Apple, with innovation built into the brand’s DNA. As Apple reclaims the title of the world’s most valuable brand from Amazon five years since it last held the top spot, we are witnessing it Think Different once again.
“From Mac to iPod, to iPhone, to iPad, to Apple Watch, to subscription services, to infinity and beyond.”
Amazon thrives in 2020
Despite relinquishing its position at the top, second-ranked Amazon has still managed to record a healthy 15% brand value growth to US$254.2 billion.
The retail giant is one of the few brands that benefitted considerably from the pandemic and the resulting unprecedented surge in demand as consumers turned online following store closures. Over Q2 and Q3 of 2020, e-commerce platforms experienced the highest revenue growth since 2016.
Most recently – further leveraging the circumstances of the pandemic – Amazon has acquired 11 passenger planes from struggling North American airlines to expand its air logistics capabilities.
A tactical purchase to support its fast-growing customer base, but also a strategic move towards building its own end-to-end supply chain, the fleet can allow the brand to become a serious contender in air transportation in due time.
Another example of Amazon’s relentless innovation in the face of global adversity, the brand has also announced its foray into the health sector with the launch of Amazon Pharmacy and fitness tracker Halo. Before it brought success to Apple, daring diversification had already been the hallmark of Amazon’s growth strategy, which it continues to pursue with impressive results.
David Haigh, CEO of Brand Finance, commented: “Playing a crucial role in supporting a new economic mode in lockdown, Amazon has found itself at the centre of attention more than ever before.
“With a revenue boost came reputational risks – from questions about the treatment of workers, to accusations of benefitting from the tragedy of the pandemic, to pushback against a global corporation in support of local retailers. Jeff Bezos has a difficult task at hand to steer the Amazon brand through dangerous waters.”
Also leapfrogged by Apple, Google sits in third spot following a marginal 1% uplift in brand value to US$191.2 billion. Slightly behind its peers in terms of diversification, Google recorded its first ever revenue decline as a result of the pandemic.
The vast majority of the brand’s revenue comes from advertising, which took a hit over the last year as marketing budgets tightened.
