Apple Beats Coca-Cola, Google To Become World’s Most Valuable Brand

 @KukilBora on September 30 2013 7:11 AM
Apple_Most Valuable Brand
Apple is now the world's most valuable brand, according to a report by Interbrand. Reuters

Apple (NASDAQ:AAPL) has surpassed Coca-Cola (NYSE:KO) and Google (NASDAQ:GOOG) to become the world’s most valuable brand among 100 competitors, according to the “Best Global Brands” report for 2013 released by Interbrand, a New York-based corporate identity and brand-consulting company.

Apple claimed the top position this year, Google secured the second-place spot, and Coca-Cola, the brand that had held the No. 1 position for 13 consecutive years, fell to third place.

“Every so often, a company changes our lives — not just with its products but with its ethos. This is why, following Coca-Cola’s 13-year run at the top of Best Global Brands, Apple now ranks No. 1,” Jez Frampton, global chief executive at Interbrand, said in a statement. “Tim Cook has assembled a solid leadership team and has kept Steve Jobs’ vision intact — a vision that has allowed Apple to deliver on its promise of innovation time and time again.”

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Apple, which was ranked 36th when Interbrand’s Best Global Brands began grading brands, in 2000, is now valued at $98.3 billion, at almost 15 times its brand value 13 years ago. Last year, the Cupertino, Calif.-based technology giant was in second place after more than doubling its valuation from 2011.

Here is an excerpt from the report:

“Few brands have enabled so many people to do so much so easily, which is why Apple has legions of adoring fans, as evidenced by the record-breaking launch of the iPhone 5c/5s… From our perspective, Apple’s internal brand strength has remained steady. CEO Tim Cook has assembled a solid team that is aligned around the Apple vision, which has allowed them to deliver against the promise time and time again. There’s been a lot of change at the top in the last 12 months, but the alignment of both hardware and software design under Jonathan Ive is a major step toward maintaining focus.”

According to the report, Apple proved resilient as it climbed the list despite having its reputation somewhat tarnished by patent spats with Samsung (KRX:005935) and a scandal at its supplier Foxconn over unsuitable labor conditions, emerging as the leader in the Best Global Brands 2013 list.

Google, in second place, managed to reach a brand valuation of $93.3 billion, while Coca-Cola got a valuation of $79.2 billion, followed by IBM (NYSE:IBM) with $78.8 billion. Microsoft (NASDAQ:MSFT) rounded out the top five with a valuation of $59.5 billion.

Other companies in the top 10 include General Electronics (NYSE:GE) with $46.9 billion, McDonald's (NYSE:MCD) with $41.9 billion, Samsung (KRX:005935) with $39.6 billion, Intel (NASDAQ:INTC) with $37.2 billion, and Toyota (NYSE:TM) with $35.3 billion.

To determine the top 100 most valuable global brands, Interbrand examines three key aspects that contribute to a brand’s value: the financial performance of the branded products or service, the role the brand plays in influencing consumer choice, and the brand's ability to command a premium price or secure earnings for the company.

In addition, companies must generate 30 percent of total revenues from outside their domestic markets and have a presence on at least three major continents as well as coverage in emerging markets.

This year, the total value of this year's 100 Best Global Brands was $1.5 trillion, a record increase of 8.4 percent over the total value of the 100 Best Global Brands in 2012, the report said.

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