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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.
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:
- Walmart (retailing – USA)
- ICBC (banking – China)
- Verizon (telecommunications – USA)
- Tesla (automotive – USA)
- TikTok (tech – China)
You can find out more about the report here:
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