Apple’s recent lack of technological advantages helps Google secure top spot in Brand Finance’s U.S. list.
Google has unseated Apple as America’s most valuable brand, according to Brand Finance’s annual Brand Finance US 500 report.
Rankings and brand’s strength is based on factors such as marketing investment, familiarity, preference, sustainability and margins.
The report concludes that Google now has a value of $109 billion and remains largely unchallenged in its core search business, the mainstay of its advertising income.
Meanwhile, Apple, which held the No. 1 position the last five years, has seen nearly $40 billion wiped off its brand value. According to Brand Finance, the company over-exploited the goodwill of its customers by failing to maintain its technological advantage and delivering tweaks to existing products rather than genuine innovation.
Amazon rounds out the lists Top 3 and, according to the report, is growing strongly as it continues to reshape the retail market and capture a large share of it. Because Amazon is only fractionally behind Google and Apple, the e-commerce retailer is poised to become the most valuable brand in the U.S. and the rest of the world in 2018.
AT&T, Microsoft, Verizon, Walmart, Facebook, Wells Fargo and McDonald’s round out the report’s top 10.
Additional findings from the Brand Finance US 500 report include:
- Coca-Cola’s brand value was $43.1 billion in 2007, making it the most valuable brand in America. Today, however, its brand value stands at $31.8 billion, putting it at No. 16 in the U.S. This is attributed to the concerns surrounding the relationship between carbonated drinks and obesity, which undermine the what the brand has represented for years. Pepsi is also suffereing, falling 4 percent to $18.3 billion.
- The brand values of fast food chains such as McDonald’s, KFC, Taco Bell, Pizza Hut, Subway and Domino’s also fell due to heavy competition in a fragmented market, with healthier brands offering more choices for consumers.
- United, Delta and American all grew by 60 percent, 47 percent and 59 percent, respectively. In the process, American has also overtaken Emirates to become the world’s most valuable airline brand.
- California is America’s most valuable state by brand value, in large part due to its dominance in the tech industry. New York is the second most valuable state by brand value.