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.”
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.