Alphabet Inc. (NASDAQ: GOOGL) overtakes Apple, which was the top one since 2011, as the world’s most valuable brand, according to Brand Finance’s Global 500 2017 report. Apple ranks second, followed by Amazon ($106.4 billion), AT&T ($87 billion), Microsoft ($76.3 billion), and Samsung ($66.2 billion).
According to the report, Apple’s brand value decreased 27% to $107 billion since the start of 2016. While Google’s brand value increased 24% to $109 billion, making the dominant search engine topping Apple as the most valuable brand.
The authors of the study analyzed that the reason for Apple’s fell in rank was partly due to its failure to generate revenues from products like Apple Watch, and “Apple has failed to maintain its technological advantage and has repeatedly disillusioned its advocates with tweaks when material changes were expected.” The authors also thought that Apple failed to “demonstrate that genuinely innovative technologies desired by consumers are in the pipeline.” The authors thought that Google is unchallenged in its core search business, which generated most of its advertising income.
Apple has just posted its first-quarter earnings of $3.36 per share, and revenues of $78.4 billion, which topped analysts’ expectations. At the same time, Alphabet, the parent company of Google announced its fourth-quarter revenue increasing 22%, which was promoted by mobile search and expansion in new business.
Currently, technology has a dominant position among the world’s most valuable companies. It is expected that banking industry will be the next one, followed by telecom, retail and car industry.