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Microsoft trumps Apple in battle of the brands

Tim Ferguson silicon.com | September 22, 2008 6:26 AM PDT

Summary

The iPhone maker languishes in 24th place in the Best Global Brands 2008 survey, while tech companies including Microsoft and Google chase the No. 1 brand, Coke.
Apple may currently be king of consumer gadgets but the company is failing to hit similar heights in a list of the world's most valued brands.

The iPhone maker languishes in 24th place in the Best Global Brands 2008 survey conducted by market-research organisation Interbrand.

In contrast, Google moves into the top 10 for the first time, up from 20th place last year.

Although Coca Cola tops the brand pile, tech companies dominate the top 10 with IBM (second), Microsoft (third), Nokia (fifth), Intel (eighth) and Google (10th) all making the list.

Interbrand calculated the value of the brands by taking into account revenue forecasts, market research and brand risk analysis--including factors such as customer loyalty.

According to Interbrand's criteria, Google's brand value has risen by 43 percent in the past 12 months to $25.6 billion, while Apple's has increased by 24 percent to $13.7 billion.

Jez Frampton, chief executive of Interbrand, told silicon.com that despite Apple's seemingly low position, its rise up the rankings has been significant. He said: "This year [Apple] have jumped up faster than any year before."

The Interbrand report added Apple's main strength is the "ability to identify new customer needs and deliver products of beautiful simplicity and desirability."

The report meanwhile attributed Google's success to "innovations like Google Mobile, Google Docs & Spreadsheets and Google Book Search" which has extended its "reach and ubiquity".

Frampton said people are now using Google as a "bellwether for the internet" rather than the more established tech players.

"You're seeing the true establishment of a brand," he added.

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What's your point?
Spiritusindomit@... 25th Sep 2008
Apple has had 5 more years to accomplish what microsoft has and has fallen far short. Does a monopoly really count as a monopoly when it is acquired because they simply produced a historically better product?

BMW isn't the most valued name the world over and they make a great automobile. However, most people would agree that people driving bmws tend to be pompous, arrogant and self righteous. Apple falls victim to the same thing. Perhaps being at the bottom is not neccessarily a good thing, but is truly much deserved.
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how are they measuring this?
Kebbles 22nd Sep 2008
I'm curious just what they are measuring when coke is number one and Microsoft is number three, but apple is forty-something on the list?

It's certainly has nothing to do with quality, and appears to be entirely about quantity.

http://www.learnucd.com/kevlar/why-is-the-iphone-popular
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Did you READ the article?
Confused by religion 22nd Sep 2008
.
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Really?
laura.b 22nd Sep 2008
Really? I mean....really?

Quote straight from the article:
Interbrand calculated the value of the brands by taking into account revenue forecasts, market research and brand risk analysis--including factors such as customer loyalty.

Even if you don't understand....it's clearly spelled out exactly what factors they used.
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Message has been deleted.
tikigawd Updated - 22nd Sep 2008
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You may prefer to drink another higher quality soda then coke, you might drink a higher quality beer then budwiser, but both aforementioned brands have higher market penetration.
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Message has been deleted.
tech_ed@... Updated - 22nd Sep 2008
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Nice!
RedM3 22nd Sep 2008
While I try to remain objective when it comes to computers and technology I do get tired of hearing the Mac zealots spew their unsubstantiated monkey crap all the time. Well said Ed.

Before the rest of the MacTards chime in I own a G5, 4 iPods, and an AppleTV so I like some of the products. It's just not the best for everything as you would like us independent thinkers to believe. Same is true for Windows and Linux. It's no surprise Microsoft has the brand recognition since they dominate in total numbers. DUH!
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Interbrand must have refused delivery of the KoolAid shipment Jobs sent and decided to run the survey objectively.
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RE: Microsoft trumps Apple in battle of the brands
john_gillespie@... 22nd Sep 2008
God must love ignorant people, that's why he makes so many.
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You just had to prove it!
RedM3 22nd Sep 2008
Some people will go to any length to prove a point.
This post by Tim Ferguson makes some very interesting and, to my mind, useful observations about big brands. Yet, read the initial comment thread and notice it is basically techies arguing about who is stupid or who is a sheep, for liking this brand or that.

Truth is... for everything most techies know about technology, there's a pile of stuff they're blind to about business. They'll flame me for saying this, no doubt, but in fact, I am one of them and I wrote more about this here:

Techies just don't get business and marketing, sometimes.
http://faseidl.com/public/item/213202
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This title is just plain dumb. MS is a behemoth that have this windows ecosystem in use around the globe (i.e.: virus, trojans, adware, bloatware, and a myriad of useless things amongst some the users and business really uses). I hope we all soon have some alternative way to do simple things, because the thought work was never accomplished using M$ wares. In time, I cannot think a more "I'm a pc, I'm a mac" ad way than that the MS just did - it was all just awful, a gigantic (shame) favor to Apple that makes the users want run to a buy Mac.
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Headline misses the point
Fred Fredrickson 22nd Sep 2008
How are global brands ranked?

"This methodology evaluates brand value...on the basis of how much it is likely to earn for the company in the future. Interbrand uses a combination of analysts? projections, company financial documents, and its own qualitative and quantitative analysis to arrive at a net present value of those earnings"

In other words, it is a measure of how much the brand name alone will earn its owner. Put another way, it's the difference between selling Windows Vista and NoName PC OS where the two products are identical, just the name is changed.

Given that Microsoft's revenue is 10 times that of Apple's, and it's PC OS monopoly, it's not hard to see that Microsoft's brand is worth a lot more than Apple's in pure monetary value.

So this isn't an "MS trumps Apple" story any more than it's an "IBM trumps MS" story. It is about which company is more reliant on its name to sell its product. I would think that being at the top is not necessarily a good thing.
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What's your point?
Spiritusindomit@... 25th Sep 2008
Apple has had 5 more years to accomplish what microsoft has and has fallen far short. Does a monopoly really count as a monopoly when it is acquired because they simply produced a historically better product?

BMW isn't the most valued name the world over and they make a great automobile. However, most people would agree that people driving bmws tend to be pompous, arrogant and self righteous. Apple falls victim to the same thing. Perhaps being at the bottom is not neccessarily a good thing, but is truly much deserved.

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