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BRAND VALUATION

Amazon takes a bite out of Apple’s brand dominance in new report

By our News Team | 2023

Brand Finance Global 500 2023 study rates Amazon as the world’s most valuable brand, with Apple dropping to second spot.

Multinational technology and e-commerce company Amazon has retaken top spot as the world’s most valuable brand, according to a new report from leading brand valuation consultancy, Brand Finance.

This is despite its brand value falling 15% – going from US$350.3-billion to $299.3-billion. This is a drop in value of $51-billion. Overall, tech companies in the latest survey saw their brand values diminish significantly as post-pandemic market forces changed.

Brand Valuation

An Amazon distribution facility in Spain. Photo credit: Álvaro Ibáñez, Madrid

But technology companies are still the most valuable global brands. Apple is in second position; Google is third and Microsoft is fourth.

“Technology brands across the world have lost significant value in response to shifting demand patterns,” explains David Haigh, Chairman and CEO of Brand Finance.

“Inflation has affected brands across many sectors, but as consumer habits partially revert to pre-pandemic patterns, demand for the services of tech brands has been hit particularly hard. Additionally, disrupted supply chains, labour shortages and greater obstacles to financing have left their mark.” 

Among the reasons for the drop in brand value of Amazon (which is scheduled to enter the South African and Nigerian markets in 2023) is that consumers’ perception of customer service at Amazon has fallen – at the same time as delivery times have lengthened. In tandem with this, consumers have become less likely to recommend Amazon to others and more people are returning to in-person shopping as pandemic restrictions lift.

Apple, which was the top brand in the previous Brand Finance Global 500 2022 report, moves into second spot in the latest report after its brand value fell by 16%.

Apple’s product supply will be limited

“This year’s fall in brand value relates to a fall in forecast revenue as a disrupted goods supply chain and a constrained labour market are expected to limit supply of its marquee hardware products,” says Brand Finance.

But despite these challenges, Apple continues to innovate, invest in long-term growth plans, and expand its offering into a broader range of services. 

“This extension of its brand further diversifies its suite of products beyond its most successful product, the iPhone. Powerful customer loyalty and a continued strong customer response to products and services such as the Apple Watch, AirTags and Apple Pay saw the installed base of active Apple devices hit an all-time high in 2022,” the report states.

Other tech-focused brands to lose value include Samsung Group (brand value down 7%), Alibaba.com (brand value down 56%), Facebook (brand value down 42%) and WeChat (brand value down 19%).

On the upside, tech brands that increased in brand value were Instagram (brand value up 42%) and LinkedIn (brand value up 49). Both grew “due to well-executed strategy to commercialise their services”, the report says.

The Brand Finance Global 500 2023 top 10 brands are:

  1. Amazon
  2. Apple
  3. Google
  4. Microsoft
  5. Walmart (retailing – USA)
  6. Samsung
  7. ICBC (banking – China)
  8. Verizon (telecommunications – USA)
  9. Tesla (automotive – USA)
  10. TikTok (tech – China)

You can find out more about the report here:

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    Dr Kin Kariisa

    Group CEO - Next Media

    Dr. Kin Kariisa is an extraordinary force at the helm of Next Media Services, a conglomerate encompassing NBS TV, Nile Post, Sanyuka TV, Next Radio, Salam TV, Next Communication, Next Productions, and an array of other influential enterprises. His dynamic role as Chief Executive Officer exemplifies his unwavering commitment to shaping media, business, and community landscapes.
    With an esteemed academic journey, Dr. Kariisa’s accolades include an Honorary PhD in exemplary community service from the United Graduate College inTexas, an MBA from United States International University in Nairobi, Kenya, a Master’s degree in Computer Engineering from Huazong University in China, and a Bachelor’s degree in Statistics from Makerere University.
    Dr. Kariisa pursued PhD research in Computer Security and Identity Management at Security of Systems Group, Radboud University in Nijmegen, Netherlands. As a dynamic educator, he has shared his expertise as a lecturer of e-Government and Information Security at both Makerere University and Radboud University.

    Dr Kin did his PhD research in Computer Security and Identity Management at Security of Systems Group, Radbond University in Nigmegen, Netherlands. He previously served as a lecturer of e-Government and Information Security at Makerere University in Kampala, Uganda and Radbond University in Netherlands.

    Dr Kin did his postgraduate courses in Strategic Business Management, Strategic Leadership Communication and Strategies for Leading Successful Change Initiatives at Harvard University, Boston USA.

    • Other current and previous roles played by Dr Kin Kariisa:
    • Lecturer of e-Government and Information Security to graduate students at Makerere University, Kampala and Radbond University in the Netherlands
    • Director of Eco Bank Uganda Limited, one of the largest banks in Africa
    • Chairman of the National Association of Broadcasters, an umbrella industry association for all Television, Radio and online broadcasters in Uganda.
    • Chairman of Board of Directors of Nile Hotel International, that owns the leading hotel in Uganda, Kampala Serena Hotel.
    • Chairman of Board of Directors of Soliton Telmec Uganda, the leading telecom company in Optic fibre business managing over 80% of optic fibre in Uganda.