Apple Inc. may be looking at trouble as the iPhone 7 hasn’t impressed the masses. In general, the public is expressing indifference to the iPhone 7. In the second quarter, the firm reported its first annual decline in revenue since 2003 when it posted profit of $10.5B on revenue of $50.6B and a poor performance by the iPhone 7 might further weaken Apple’s financials in the current quarter. Nonetheless, iPhone maker has maintained its number one position on the list of world’s most valuable brands.
This article examines how the firm maintains its brand leadership in the technology industry despite declining iPhone sales. The firm remains the largest technology firm in the world with a market cap of $611B, highest revenue of $233B, profits of $53B, and assets worth $239B.
Apple tops wold’s most valuable brand list for 4th straight year
Apple Inc. maintained its first position on Interbrand’s annual ranking for world’s most valuable brand for the fourth straight year. For the 2016 raking of world’s valuable brands Apple recorded a 5% increase in its brand value to $178B. Alphabet’s Google occupies the second position with an 11% increase in brand value to $133B. Coca-Cola occupies the third position with a 7% decline in brand value to $73B.
Apple is one of the top performing firms in the tech industry and its valuation has been increasing steadily since 2002.
The researchers noted that “Analysts have often pointed out that “Apple has superior products.” While true, this opinion undersells the brilliance of the firm’s functionally integrated model. Its software, hardware, and touchpoints are connected not just by beautiful design aesthetics, but by a level of interoperability that justifies the Apple premium and discourages defections to another platform. And the more data you share, the more personal it becomes—adding new devices is painless and the thought of switching increasingly unpromising. Apple is the Alpha of Cohesiveness in full effect.
Apple’s brand is valuable but it is not growing
Apple ‘s iPhone 7 has suffered much criticism since its debut – users took issue with the absence of the 3.55mm jack, the phone seems to have a bad battery, and its Bluetooth connection is at best spotty. Interestingly, the firm has been reluctant to disclose its iPhone 7 sales number and many analysts have posited that the iPhone maker has lost its innovative edge with the demise of Steve Jobs.
Tim Cook’s failure to innovate and launch blockbuster products might start to affect his brand because the firm didn’t make a Interbrand’s 2016 list of top-growing brands. Facebook and Amazon occupy the first and second positions among the top growing brands for 2016 include. Other firms on the list include LEGO, Nissan, Adobe, Starbucks, and Zara among others.
However, the fact that the iPhone-maker didn’t make the list of top-growing brands this year doesn’t mean that the firm is less of a market leader. Recode maintains that the firm“ constantly pours investment dollars into its machine and equipment spending—an important differentiator that helps make it one of the most profitable companies in the world.”