Google toppled Apple’s position as the most valuable US brand in 2017. After dominating Brand Finance Global 500 league table for five years – 2012 to 2016 – Apple came down to the second position. This year too, Apple is on the second place in the list of the most valuable US brands. Amazon, which was in the third position in March 2017, has made it to the first in June 2018. This indicates that Apple needs to jostle for the number one position.
However, the million-dollar question is what makes Apple fall to the second position from the number one status. David Haigh, CEO of Brand Finance commented on the launch of iPhone X, “Premium products put Apple’s brand value at risk.”
Apple needs to jostle for number one position in the list of most valuable US brands
David Haigh added that “With the advent of cheaper phones from emerging world brands like Huawei, Apple’s increasing focus on what are effectively luxury products may ultimately cost the brand a fair share of the global mass market and potential growth of brand value.”
When Apple introduced iPhone X, users welcome this piece as the right answer to Samsung’s all-screen mobiles, but when they came to know about the price, they were discouraged and turned to similar models from Apple’s competitors.
Apple got the hint from its dwindling position in the brand list, and the brand found a good reason to launch iPhone X as the 10th anniversary iPhone. Under the guise of anniversary phone, Apple wanted to win the hearts of users, who had began to lose faith in once hugely successful brand. But the premium price tag and delayed availability of iPhone X slowed down the brand’s reclaimed momentum.
What keeps Apple as the second most valuable US brand?
Apple’s idea of creating an ecosystem helped it avoid any further damage as Apple Watch and the upgraded Apple TV 4K generated enough interest to break the spell that seemed to restrict sales on these products in the past.
On the other hand, David Haigh is all praise for Amazon, which has built a brand that has no peer. David is particularly impressed by Amazon’s unmatched convenience, availability, and scale. Amazon is obsessed with its customers, and therefore, it is expanding into new industries to respond to the evolving preferences of modern consumers.
What do other reports say about Apple?
According to NetBase, Apple is in the sixth position in the list of Most Loved Brands of 2018. Glassdoor’s list of top 100 CEOs ranks Tim Cook at 96, down from 53. Glassdoor cites Apple’s employees’ complaints about office culture and a lack of work-life balance as the reasons.
A silver lining for Apple
Although Apple fell one spot to fourth position on the revenue-based Fortune 500 rankings 2018, there is a silver lining for the brand. Apple’s shareholders are upbeat as the brand is likely to top the brand tally by surpassing the $1 trillion mark for valuation.
Apple’s Services business, which includes App Store, iTunes, Apple Music and iCloud, as these services are primary growth drivers for Apple.
Following the comments from David Haigh, I can say that Apple needs to drop the prices of its upcoming new 2018 iPhones. The exorbitant cost is the big stumbling block for Apple on its way to number one position.
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