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. 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.

  2. 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.

  3. 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!

  4. 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.

  5. 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.

  6. 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).

  7. 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.

  8. 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.

  9. how is 64 bit not innovation? for those of us making albums on our iPhone and iPads, it’s really funny to hear people think samsung is innovative. that’s recording an album, SON… can’t do that on samsung

    1. Apple hasn’t bothered to explain to people what 64 bits functionally does for the user. It isn’t visible and, with the annoying iOS7 animations, it’s not readily apparent when using basic functions. However, most customers can read price tags and see the differences in display sizes/resolutions.

      It sure would have been nice if the innovative 64-bit iOS7 wasn’t forced on users with 32-bit hardware. That alone negated the supposed advantages that iOS7 was to offer. But worse, the iOS7 and Mavericks GUIs were made uglier and less legible to a lot of users. Other products like iWork were just disappointing zero-improvement products attempting to force everyone onto iCloud server rental. The much-lauded Mac Pro is so rare that nobody here on MDN has read a word about since December, when everyone expected to receive their new machines. On top of that, Apple’s PR machine fell silent, so nobody on the street can tell you specifically what advantages Apple offers. Everyone knows the hardware is of superior quality, but most people choose the Honda instead of the Porsche. They need “workable”, not “world’s best”. Apple’s response was to take the rugged metal iPhone 5 and wrap it in pastel-colored plastic. For two years Apple has refused to offer significant choice in iPhone models as it does with its iPod models. Why is anyone here surprised that the world considers no new hardware = no new innovation?

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