Apple loses $37 billion in brand value due to ‘lack of innovation’

“Apple’s failure to launch a new product in the last 12 months has seen its brand value fall by 20% to $148 billion (£87.6bn) as Google climbs 40% to overtake Apple as the world’s most valuable brand,” David Gilbert reports for IB Times.

“Apple had held the top spot on the Millward Brown Brandz ranking for the last three years, but the lack of a major new product announcement in the last 12 months – aside from updates to its iPhone and iPad ranges – has seen Apple seem stale in comparison to some of its rival,” Gilbert reports. “‘Whilst Apple remains a top performing brand, there is a growing perception that it is no longer redefining technology for consumers, reflected by a lack of dramatic new product launches,’ the report says.”

Gilbert reports, “Google jumped to the number one spot thanks to the launch of products such as Google Glass, its continued domination of Android in the smartphone business and the company’s continued development of driverless cars.”

MacDailyNews Take: Is it really “domination” when Apple’s iPhone takes 87.4% of the mobile phone industry profits? In reality, Android’s one big claim to fame, it’s so-called “domination” (unit or, more commonly, market share) is nothing more than failing to make it up in volume.

Full article here.

MacDailyNews Take: If Apple had an effective (or even just a functional) PR department, instead of a collection of mutes headed by a lame duck, this sort of blatant disinformation would be contained, refuted, and dispatched, not allowed to spread, fester, and seep into the general public’s consciousness thereby negatively affecting Apple’s brand and company reputation.

As for Apple’s so-called “lack of innovation”:
• iPhone was released 5 years, 7 months, and 19 days after iPod.
• iPad was released 2 years, 9 months, and 5 days after iPhone.
• Tim Cook has been Apple CEO for 2 years, 8 months, and 29 days.

Related articles:
Google overtakes Apple to become 2014 BrandZ Most Valuable Global Brand – May 21, 2014
Apple wins Brand of the Year in three Harris Poll EquiTrend categories – July 25, 2013
BrandZ Top 100 Most Valuable Global Brands 2013: Apple Inc. #1 – May 21, 2013
BrandZ Top 100 Most Valuable Brands 2012: #1 Apple – May 22, 2012
Apple leaps over Google to become world’s most valuable brand – May 9, 2011
BrandZ’s Top 100 Most Valuable Brands: #1 Google world’s first $100 billion brand; Apple #6 – April 30, 2009

57 Comments

    1. Very “creative” and meaningless too!

      MacDailyNews is correct: “If Apple had an effective (or even just a functional) PR department” this crap would be crushed. Instead, FOR MONTHS I keep being told that I have a “verse”. What! Where is the PR about the only 64-bit OS smartphone and tablet!!! What about everything else Apple continually shows off and develops, like CarPlay. I have yet to find even one car sales person that knows ANYTHING about CarPlay. Time to shame the rest into offering it in every car with a touch screen.

      Where are the funny TV ads about the diversity in Android phones making app development a nightmare, the widespread hacking and viruses in Android devices, or which version of Android are you running thing? If Apple can’t do this anymore, make it a competition of clever ads made on Apple iOS devices. Almost any long term Apple user can do this for you Apple. ANYTHING that isn’t about My Verse! It was about colored iPhones before that. Who picks this stuff out now?

      1. Good grief Peter, no wonder people think we’re all blind fanboys.
        Face facts, under Cook Apple’s brand cache has evaporated.
        This isn’t 5 years ago, large tech firms are not the lumbering sloths they used to be (M$ excepted).
        Jobs was a lion, Cook is a soft talking puff. The results of his ineffectual leadership are obvious to all but MDN readers.
        Remember, we all gave him the benefit of the doubt? Well that time has passed. You noobs don’t remember what happened after Jobs was kicked out in the 80s. Apple did great…. for a while. Then it all collapsed.
        THAT is where we are now. The collapse has begun.
        You know the drill. One star for Cook.

        1. Well no. I’m not a blind fanboy (having followed APPLE since 1976 but only bought my first Mac in 1992) but certain things you can take on faith. If you notice the cycle of new product paradigms MDN posts often from Apple and innovations they occur about once every 3-7 years. Tim Cook has been a CEO less than 3 years so he is due in the next year to stir things up again. So in fact the
          “benefit of the doubt” or honeymoon period has NOT expired for the ADD crowd. I don’t think we should give him less time to prove himself than Jobs had do we? I believe this will happen with iWatch, Apple TV or ? Not to mention stealing market & more profit share from Android with the larger iPhones. Also when Jobs started the mobile device field was wide open to conquer. Now the types of devices to further exploit are diminishing as current technology allows.

          Cook may be a quiet Lion but I think he is no less ambitious for Apple having trained under the Master himself. After Jobs was kicked out early on Apple did moderately well slowly declining under more clueless leadership until Gil Amelio took one for the team and essentially got himself fired by bringing Jobs back. Meanwhile before that Jobs was developing the next Max OS being OS X (aka NeXT) though he didn’t know it at the time.

          Apple is hardly at the point of collapse, your extremely poor analysis false & premature histrionics notwithstanding. I don’t know why you would even try to comment at this point with so many things rumored in the pipeline. Want to be the last soul proven wrong who makes a fool of himself with ludicrous predictions? I look forward to seeing your mouth agape in astonishment in the near future at Apple’s success just as Wall Street’s recently was, oh ye of little faith.

        2. It would astonish me if–
          –Apple stopped pretending its pro customers are consumers. Adobe has Julianne Kost, Terry White, and others. I’ve talked directly to Julianne in person, at Imaging USA. Where was Apple? Nowhere.
          –An Apple-built Final Cut 7 to X converter emerged. That could have solved A LOT of problems. Xto7 is hopeless.
          –Apple put more than two interns on Aperture development.
          –Apple produced a proper Office competitor that had features professionals need. No, I’m not impressed with butterflies and giraffes and I DON’T appreciate having key elements removed without notice.
          –Apple made an Entourage killer. Juggling Mail/iCal/Contacts is retarded.
          –Maps could get even one intersection in my town right.
          –Siri was not bipolar.
          Yeah, I know, I’m demanding. Let’s be fair, Apple only has $150b in the bank. Can’t expect them to, you know, actually listen to their users.
          FYI:- John Sculley increased sales from $800 million to $8 billion after Jobs left. That’s why I’m NOT impressed with Cook. Steve should have left a man in charge.

        3. Any money John Sculley made for Apple was short-lived and without much anything beyond basic marketing. Oh and the Newton. The money Tim Cook has helped make for Apple absolutely dwarfs Sculley’s contribution. So plainly you are babbling incoherently about Cook and underestimating the man. You are grotesquely premature in your assessment of him. I don’t have any of the issues with Maps or Siri you do, in fact they’ve gotten heaps better. I might agree with some of your wish list items like an Apple Office Suite on steroids that finally kills off Microsoft’s would be nice.

        4. Haha. “…innovation bomb drops and the explosive cigar in their disingenuous mouths explode…” is incoherent babbling.
          Who talks like that???
          We have just over a week until WWDC my friend, let’s talk more about this “innovation bomb” then.
          Meanwhile, please look up ‘disingenuous’. Come to think of it, most of the polysyllabic words you use don’t actually mean what you think they mean. May I recommend the OED?

        5. I sometimes deliberately massacre the English language in the subversive search for a “nit-witicism.” Sorry you don’t get it. All in good fun. And disingenuous is one of my favorite apropos words. One Star perfectly describes your contribution here.

        6. Oh and tell that to Apple about the “brand cache” fading after selling 43 million iPhones last quarter to Wall Streets astonishment. In fact only iPads were down slightly but you have to account for cyclical changes. For a “fading brand” it’s performance is rock solid and need I remind you Chicken Little it’s still the world’s Number One company? You’re really leaning into a generous portion of egg on your face.

    1. Tim Cook is not Steve Jobs, and he never will be. No one will be. I count myself lucky that my life has been so profoundly improved by such genius. I doubt that there will be another for many years to come.

    1. “perception of theoretical brand value”
      Nicely put.

      Such evaluations of theoretical value have about as much reality as the pontificating of all those “analysts” and “pundits” we all love and respect so much.

  1. Longtime Apple watchers have come to know that the company is a bit like a tornado . . . when the clouds seem to be lining up (and enough disparate supply chain articles over the past six months suggest strongly that is happening), beware the stillness.

    What follows is usually lines into Apple stores wrapping around the block.

    1. “Well kind sir, *harrumph,” we here at a Google don’t measure success with such crass things as number sold, profits made, etc.. But the controversy, technological pretensions, and invasion of personal privacy gestures make it all worthwhile.” –Larry Page/ CEO

  2. You are right MDN in what way can a product like Google Glass be considered innovative when it has made no impact at all as yet. Isn’t this the sort innovation that Microsoft perfected with magical products that either never got to market or were anything but the promise they seemed to show in the lab or PR department to be precise.

    As for driverless cars, we are in a world where we seem incapable of stopping a state of the art hi speed train traversing a known never moving bend at twice the speed it was supposed to with no interference from any safety overrides whatsoever that had any effect yet apparently sometime soon we are all going to be travelling in driverless cars. The funniest thing was a proposal I saw where the passengers sat facing each other because there was no longer a need for front seat passengers to look out the windscreen any more. I can really see passengers having no concern at all travelling backwards at 100 mph relying totally on some electronics to keep them safe. Unless of course most people would prefer not to see the accident that is about to take their lives.

  3. I suspect that Steve really liked Katie Cotton, since he kept her around a long time. I’m pretty certain he set the PR tone for the company

    Times have changed. Angela Ahrendts, who comes from outside the tech industry, may be part of an evolution of some aspects of the Apple culture. I hope whoever takes over Cotton’s duties will bring a new and more vigorous approach to presenting Apple’s public face.

  4. Google sells ads. Very effectively. And make tons of money doing so. They buy companies in hopes of coming up with the next big thing. That’s good. That’s what they should be doing. But they’re not necessarily innovating by doing that. In the next six months we’ll see what Apple has done regarding innovating. They are two different companies so it’s difficult to compare them with each other. While I believe Google is evil, and I wish Apple could crush them, I do believe that Google is smart in taking some of their profits and trying to expand their horizons beyond advertising. Just as I believe Apple will try to eventually be more than a hardware and software company. I believe their future lies in services such as payments. Apple is so big it’s hard to move the needle as far as the stock price rising. Like it or not stocks are valued to some degree on potential not past performance. Google’s revenue/margin stream is steady. Google really has no competition in their field. Apple is dependent upon each release of its latest hardware. That can be very good or not so good. Apple has made good small purchases in the past but I believe they should have spent some of those billions just as wisely with larger deals. I think they will do that going forward. Or maybe even break themselves up into several companies? That happens quite often and can be very effective and profitable. As for the most valuable brand? Google clearly has the most popular search engine. No one else is close. Apple doesn’t do search. Apple makes hardware and software and provides services. Maybe number two will try harder?

    1. I agree with most of what you say. Except on stock price, which is heavily influenced by hedge funds, not revenue streams.

      When you watch a movie, and you see someone doing a search, do you think to yourself, “Oh, look, they’re using Google?” Probably not very often. When you see that apple lit up on the back of a computer, I’ll bet you always notice it’s a Mac.

      As far as brand value goes, people don’t buy search engines, but they do buy computers. However, companies do buy advertising. I don’t think they pick Google because they’re cool or have a great product, but because their search is so dominant they know they’ll get more clicks there.

      Brand value is a subjective concept. It’s difficult do know how much dollar value to assign to a concept. IB Times has their idea. I’ll go back to my earlier posting. Who even cares?

      A good Apple spokesman could make a great joke about this article, better than the “can’t innovate any more, my ass” line. I did like the toaster-fridge concept. I hope more of that attitude shows up in the future.

  5. So Tim Cook has 6 days to release a game changing product like the iPad, iPhone, or iPod, or else the claims of lack of innovation at Apple start gaining some legitimacy.

    If does releases a game changer in 5 days, it would technically make his Apple more innovative than it ever was under Jobs. Wonder how long it would take the general press to acknowledge that if it happens.

    1. How long? Hard to say, but what I believe is that these guys wouldn’t acknowledge bupkis, even if Tim Cook threw himself in front of a speeding train to save their grandmothers.

      1. HA!
        I haven’t seen the word Bubkis is eons, reminds me of my childhood where swear words were taboo, thank you for your decorum.
        BTW, i say save the grandparents by throwing “these guys” under the bus!

  6. Even if Apple has gone out with a PR compaign, there will always be DUMB analysts/writers who will write crap like this. Many of them do not understand that Apple major focus is on the high-end market where it gets higher profit for each sale. It has always been like that since day one. Market share is a big lie.

    1. Plus the paid analysts/writers that are told to create negative stories.

      MS, Samsung, Google, LG, etc all have lots of money to throw at people to attack Apple. When the first iPhone came out, we knew it was going to be an uphill battle and be in every competitor’s cross hairs.

    2. Apple has been on a PR campaign. In it, their messages were:
      1) We like gays and
      2) we like green energy boondoggles.

      Analysts recognize that these messages do nothing for the bottom line.
      They further recognize that Apple’s competition has been delivering features that Apple isn’t (e.g. bigger screen).

    1. The map update I just got put google even further ahead.
      Go on. Go to the Huntsville Space Center in both apps.
      In Google maps you can see the parking lot, all the buildings, the Apollo rocket…
      Let’s try Apple maps. Ah yes, a blank space.
      You will find the same results just about everywhere.
      No, I don’t like Google, but almost daily I hear about what they are doing. From Apple, silence.

  7. Nice to ignore and take the “high road” if you’re Apple.
    However, that road is naive, and I believe hurts Apple’s Brand, thus it’s revenue.
    The impotent advertising dept. needs to adopt the Israeli response: if you bloody our nose with your disinformation, we will, in turn, bloody your nose , except all we need to do is tell the TRUTH about Samsung, android, Bloomberg, etc.

  8. I thought about further ripping on about these results, but I know full well the competitors with Brandz are going to do a much better job with time.

    Meanwhile: Seriously. Find a better innovator than Apple. If Google really can kick Apple’s ass, then great! But I’m not seeing ANYTHING I want, need, desire from Google other than that one thing they do better than anyone: Their search engine. Meh or bleh on everything else. I certainly have no desire for Google Glass. I might enjoy a totally immersive set of 3D goggles some day!

    1. As for Android: It’s security problems ONLY get worse. This was reported this week:

      World’s most pricey trojan is veritable Swiss Army knife targeting Android
      Malicious Android app contains remote bugging, SMS interception, and much more.
      http://arstechnica.com/security/2014/05/worlds-most-pricey-trojan-is-veritable-swiss-army-knife-targeting-android/

      Great for people who can avoid this stuff. But OBVIOUSLY, malware for Android is paying off big time. That’s why the number of malware continues to rise exponentially and the malware is getting more vicious. Denial is a river in Egypt. Stop pretending Android’s security problems don’t make it an extremely dangerous operating system. (No denial replies please. I’d rather you read the article than attempt to prove Android security to me. Not gonna happen).

  9. Seems to me that Apple’s lack of a response to slams like this one is a well-thought out strategy. I admire Apple’s resistance to join in on the dullards’ discussions. What Apple actually produces in the end will out shine the smear and Apple will have maintained its integrity. Methinks they have a good handle on the longterm value of its presentation to the world.

  10. Nice mix of Release Dates vs Tim becoming CEO.
    As for Apple’s so-called “lack of innovation”:
    • iPhone was released 5 years, 7 months, and 19 days after iPod.
    • iPad was released 2 years, 9 months, and 5 days after iPhone.
    • Tim Cook has been Apple CEO for 2 years, 8 months, and 29 days.

    Should be:
    As for Apple’s so-called “lack of innovation”:
    • iPhone was released 5 years, 7 months, and 19 days after iPod.
    • iPad was released 2 years, 9 months, and 5 days after iPhone.
    • Nothing New has been released in 4 years, 1 month, and 19 days.
    • Tim Cook has been Apple CEO for 2 years, 8 months, and 29 days.

    I am not to concerned with the lack of NEW products as with the change to update cycles, for biggish announcements every 3 months (weather just overtyped updates or not) or so before Tim to basically annual iPhone, iPad announcement.

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