Samsung gains on Apple in ranking of most valuable global tech brands
Published on: 21st May 2013
Note -- this news article is more than a year old.
Korean based Samsung, vying with Apple for leadership in the smartphone market, grew its brand value by 51% (compared to a weighted average of 7% growth in the Top 100 overall) to $21 billion. It moved up 25 places to no.30 in the eighth annual Millward Brown Optimor BrandZ Top 100 Most Valuable Global Brands ranking despite the value growth of technology brands remaining flat.
Samsung balanced a remarkable period of innovation with chasing market share -- it spent $1.6 billion more on advertising in the last year, a 33% increase as a percentage of its revenue. This was reflected in the sales success of its Galaxy smartphone.
Top 10 Tech Brands
The technology category as a whole declined 1% to $728 billion, compared with a rise of 2% a year ago. Yet four of the top 10 most valuable brands are technology brands including Apple, which retains its no.1 position as the Most Valuable Global Brand, at $185 billion, due to the brand's strength and meaningful difference. This is despite a 95% decline in its rate of growth following a steep drop in share price, which yielded a brand value increase of just 1%. Last year the Californian technology giant boosted its brand value by 19%.
No.2 brand Google benefited from skepticism about Apple as its stock rose to record highs based on ad revenue from online search, the market dominance of its Android operating system for mobile devices, and the ubiquity of Gmail. The brand is once again a serious challenger for the top spot -- reversing a -3% decline last year to a +5% gain this year in its brand value to be worth $114 billion.
The flat growth in the technology sector reflects the fact that many brands released new iterations of existing products in 2012 -- for instance, the iPhone 4s or 5 -- rather than launching major innovations, which failed to excite consumers or investors.
The soaring popularity of social media in China drove Tencent's brand value up 52%, placing it fifth in the BrandZ ranking's Top Risers list and no.21 in the Top 100. Yahoo is the fifth highest newcomer in the Top 100, in at 92 with a brand value of $9,826, after a new CEO lifted expectations and share price.
The fortunes of Facebook changed dramatically -- after its much anticipated IPO, its stock dropped dramatically. The brand, which sits at no.31 in the Top 100, has a brand value of $21,261, down 36% on last year.
Robin Headlee, Vice President of Millward Brown Optimor, says: "Apple is still worth eight times more than Samsung, and maintains its No.1 position in spite of negative investors' sentiment and a slip in the stock price because of the strength of its brand. Brand is Apple's secret weapon -- its ability to innovate and remain relevant to consumer challenges in an increasingly fast-changing and competitive market. Despite a more competitive marketplace, Apple's ability to maintain its no.1 position demonstrates the value that having a strong brand brings to businesses. Apple's brand contribution is 18% greater than Samsung's.
People still love Apple regardless of its stock price. It remains a relevant, innovative, trusted and recommended brand to the people that purchase."