Microsoft trumps Apple in battle of the brands
Summary
Topics
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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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
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.
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!
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
"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.
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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