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“Calculating the value of a company’s brand is as much an art as a science because it requires looking at an array of factors,” McIntyre writes. “The two largest brand valuations firm — BrandZ and Interbrand — come up with radically different numbers for the same companies or products. Each of the brand valuation operations give general descriptions of their methodologies, but keep many details of their calculations secret.”
McIntyre writes, “Using the firms’ data as a reference, 24/7 Wall St. chose 10 big-name brands operating in the U.S. that have lost substantial chunks of their brand valuations in the first half of this year. We then examined a whole host of other criteria, including the value the brand has to its parent company’s market capitalization, the change in stock price over the first six months of the year compared to both the S&P 500 and firms in its peer group (each of these company’s stocks underperformed the broader market during the time) and the company’s earnings for the 2009 calendar year and the first quarter of 2010. Of course, another consideration was whether the company had a major negative event that made headlines.”
The 10 Biggest Brand Disasters of 2010:
1. BP (BP)
Brand value Jan. 1, 2010: $20 billion.
Brand value June 30, 2010: $0.
Change: -100%
2. Dell (DELL)
Brand value Jan. 1, 2010: $16 billion.
Brand value June 30, 2010: $9 billion.
Change: -44%.
3. Adobe (ADBE)
Brand value Jan. 1, 2010: $7 billion.
Brand value June 30, 2010: $4 billion.
Change: -43%.
Apple has damaged the prospects of several of the companies on this list, but none more than Adobe. Its Flash player has been the dominant multimedia software on the PC, a position it took from Microsoft and RealNetworks (RNWK) years ago. But Flash needs to migrate to mobile devices, where Apple has very effectively blocked a portion of that migration by refusing to allow Flash software onto its iPhones, iPods and iPads.
In April, Jobs wrote: “Flash was created during the PC era for PCs and mice. The mobile era is about low power devices, touch interfaces and open Web standards, all areas where Flash falls short.” Ouch.
Adobe’s stock dropped from $35 the day that Jobs wrote the statement to $32.50 five trading days later. Apple’s App store, which has over 200,000 applications and claims in excess of 3 billion downloads, allows Jobs’s company to almost entirely control what kind of software and multimedia technology runs on its products. Apple also forbids Adobe’s Creative Suite software to run on its devices.
MacDailyNews Note: Apple does not “forbid Adobe’s Creative Suite software to run on its devices.” Apple forbids Adobe’s crappy mobile Flash from running on iOS devices.
Google’s Android, however, runs Flash — so all is not lost in mobile devices.
Adobe recently posted strong sales, but concerns about its mobile future still dog the company
4. Sony (SNE)
Brand value Jan. 1, 2010: $12 billion.
Brand value June 30, 2010: $7 billion.
Change: -42%.
5. Goldman Sachs (GS)
Brand value Jan. 1, 2010: $16 billion.
Brand value June 30, 2010: $10 billion.
Change: -38%.
6. Research In Motion (RIMM)
Brand value Jan. 1, 2010: $25 billion.
Brand value June 30, 2010: $16 billion.
Change: -36%.
RIM’s BlackBerry dominated the smartphone market from 2002 until 2009. But then it began losing its grip thanks largely to the Apple’s (AAPL) iPhone. Google’s Android-based phones, as well as smartphones from LG, Motorola and Samsung have also helped erode RIM’s lead. Recent data from Changewave, a well-regarded wireless research firm, showed that in June, 52% of people polled said they planned to buy an iPhone (up from 31% in March), 19% planned to buy an Android-powered HTC phone (up from 12%) and only 6% planned to buy a BlackBerry (down from 14%). Recent data from research company Comscore show a similar shift but not nearly as dramatic.
7. Nokia (NOK)
Brand value Jan. 1, 2010: $40 billion.
Brand value June 30, 2010: $27 billion.
Change: -33%.
Even though Nokia reins [sic] as the largest manufacturer of mobile handsets in the world and claims up to 37% of the global market, it has failed to gain traction in high-end smartphones. Its shares have plummeted 67% in the three years since Apple started selling the iPhone, and now it’s rumored that Nokia’s board is shopping around for a new CEO to replace current chief Olli-Pekka Kallasvuo.
Nokia has virtually surrendered the high-end smartphone market to the iPhone, BlackBerry and Android-powered handsets. The loss in market share is beginning to take a toll on Nokia’s financial performance.
8. Johnson & Johnson (JNJ)
Brand value Jan. 1, 2010: $45 billion.
Brand value June 30, 2010: $33 billion.
Percent change: -27%.
9. Google (GOOG)
Brand value Jan. 1, 2010: $100 billion.
Brand value June 30, 2010: $74 Billion.
Change: -26%.
10. Toyota (TM)
Brand value Jan. 1, 2010: $30 billion.
Brand value June 30, 2010: $24 billion.
Change: -20%.
Read more in the full article here.
MacDailyNews Take: Apple the Destroyer.
[Thanks to MacDailyNews Reader “Wirehead” for the heads up.]
NB: Nokia “reigns”, rather than “reins”
People keep blaming Apple, when the ball is in Adobe’s court. If Adobe were to have a full featured and efficient Flash for (other) mobile devices, then there might be a reason for Jobs to reconsider the position on iOS. (They still have to demonstrate it on the Mac desktop, in my opinion.)
…And Apple rains.
Gee, no “antennagate”? I mean that was so devastating to Apple and iPhone 4 sales.
Adobe and Flash? Why blame Apple, which is trying to deliver the best mobile experience possible.
So, Adobe has worked for 3 years trying to produce a stable… I won’t even both with efficient… mobile version of Flash and STILL no dice? What’s a whiner to do?
Maybe Adobe should sell flashy 100 foot extension cords and a Flash branded handtruck for a truly mobile version of Flash. So those who want can easily use their MobileFlash to haul their desktop machines wherever they damn well please.
Just think of it! Full desktop-level computing power, with a full desktop OS… hell, why not haul your desk… wherever you can push the thing.
Now THAT’S mobility!
Been a MacHead since 1991 and let me tell you, I’m feeling pretty fine at the mo. Pretty fine.
Apple is brought up several times.. good to see Google breaking in the top 10..
Bing and decide!!
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If Apple puts out their Home Media Center this year than Sony will take a big hit too! Steve Jobs talked about this as Apple’s center piece or hub about 4 years ago at a MacWorld Keynote. Apple could, IN ONE MOVE, put out a Mac Media Device that would be a video conferencing, internet surfing, HDTV, DVD, BlueRay, video, photo, media hub in ONE DEVICE! And what other competitor built a BILLION DOLLAR SERVER FARM to support it?
Adobe flash? What’s that again?;-)
Adobe”s brand has no value.
Their IP and position in the market have value.
Their brand does not.
… Apple lost at least 10% due to “Antenna-gate”, but that was countered by other gains during the year. Even were that not true, that would not challenge the 20% lost by #10 – Toyota.
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Interesting, though, is the fact that five of the first seven are in essentially direct competition with Apple. The strongest of that five dropped a third of it’s value, the weakest lost over 40%! Did ANY of Apple’s competitors fare as well as Apple? I’d be surprised if they did. Apple’s Macs are selling better than ever, but they are no longer the engine driving this machine. This bulldozer.
History shows that this will happen to Apple as well. There is are few companies that has maintained longevity over many decades, certainly not over 100 years.
Look at the arrogance that Apple shows, particularly in removing matte screens — which not everyone needs – but many working professionals do. See the comments from professional users at http://macmatte.wordpress.com
Even sure-thing companies eventually wane. And it’ll probably be in the lifetime of us/you Mac fanboys.
Apple is already the new Microsoft. I predict 10-20 years. No company that treats its customers with disdain can get away with that sin.
“Apple also forbids Adobe’s Creative Suite software to run on its devices.”
No it bloody well does not! Adobe has released a version of Photoshop for iOS which has been approved by Apple and is available on the App Store. I can’t imagine Apple would contemplate banning an iOS version of most Creative Suite applications. In fact, I’m sure they would be thrilled with an iOS version of InDesign and Illustrator too.
… Brand recognition has been recognized as having measurable value since before I studied Marketing in college. That would be in the 60s. Brand most certainly DOES have value and it must be recorded in the books. Companies occasionally twiddle with this number a bit when they are in some sort of trouble or are up for sale, but this can bite them in the end.
… Brand recognition has been recognized as having measurable value since before I studied Marketing in college. That would be in the 60s. Brand most certainly DOES have value and it must be recorded in the books. Companies occasionally twiddle with this number a bit when they are in some sort of trouble or are up for sale, but this can bite them in the end.
… Brand recognition has been recognized as having measurable value since before I studied Marketing in college. That would be in the 60s. Brand most certainly DOES have value and it must be recorded in the books. Companies occasionally twiddle with this number a bit when they are in some sort of trouble or are up for sale, but this can bite them in the end.
… Brand recognition has been recognized as having measurable value since before I studied Marketing in college. That would be in the 60s. Brand most certainly DOES have value and it must be recorded in the books. Companies occasionally twiddle with this number a bit when they are in some sort of trouble or are up for sale, but this can bite them in the end.
… Brand recognition has been recognized as having measurable value since before I studied Marketing in college. That would be in the 60s. Brand most certainly DOES have value and it must be recorded in the books. Companies occasionally twiddle with this number a bit when they are in some sort of trouble or are up for sale, but this can bite them in the end.
… Brand recognition has been recognized as having measurable value since before I studied Marketing in college. That would be in the 60s. Brand most certainly DOES have value and it must be recorded in the books. Companies occasionally twiddle with this number a bit when they are in some sort of trouble or are up for sale, but this can bite them in the end.
… Brand recognition has been recognized as having measurable value since before I studied Marketing in college. That would be in the 60s. Brand most certainly DOES have value and it must be recorded in the books. Companies occasionally twiddle with this number a bit when they are in some sort of trouble or are up for sale, but this can bite them in the end.
@ Stuart
That’s not really Photoshop, it’s Photoshop.com. Which is not Photoshop CS.
i imagine ‘stock’ for horse-drawn carriages also dropped soon after the model-T ford became pervasive.
lol
times are a-change’n
One, McIntyre of 24/7 Wallst is an Apple hater, so don’t send him hits.
Two, he wrote, “Changewave, a well-regarded wireless research firm”. Changewave is NOT “well-regarded. And, it’s not a “wireless research firm. They do shoddy surveys with self-selecting members and come to ridiculous conclusions oftentimes when the delta is within the margin of error. Their surveys are good for trend analysis, but not the microanalysis that they like to do.
ha! Here’s to Adobe slipping further and further down the crapper! I can only hope that if they can by next year manage to slide down to -$1b that perhaps someone will buy them and rebuild, or someone competent will actually provide us with a working and solid design suite.
I hate Adobe and that ass-faced Shantanu Narayen. I hope they go painfully.
Apple is the new Microsoft? Not yet man.
Not providing a matte option to their laptops doesn’t = years of IP theft, and profiting off of awful software while you push alternatives out of business.
Not that Apple or any company isn’t capable of pulling an evil 180 (like we’ve seen with Google), but Apple isn’t there yet, and isn’t even close yet. The company is still hammering out hit after hit. If/when they become complacent and start pumping out crap – then you’ll have an argument, but not now.
@JJ
I am an Apple customer and I have never felt I have been treated with disdain. I actually have felt valued and appreciated. I have had a couple of instances where I brought an Apple product back to the store and left with a replacement for it. So I am not sure how you feel that Apple is not doing right by it’s consumers.
As for not having flash on my iPhone or iPad. Since I rarely use it on my MacBook I am not missing it at all. I guess porn uses it a lot, since when one of those sites goes to html5 it seems to make the news.
And one last comment I believe both BP and Toyota will recover.