Brand Finance , an independent branded business valuation, and strategy consultancy based in London, released the Tech 100 report and according to it, Amazon holds the title of the world’s most valuable tech brand (42% to US$150.8 billion), with Apple in second place (up 37% to US$146.3 billion), while Google sits in third (up 10% to US$120.9 billion), as both as both Amazon and Apple’s brand value have pushed the tech behind. What is a brand value? Brand value is equal to a net economic benefit that a brand owner would achieve by licensing the brand. Brand strength is used to determine what proportion of a business’s revenue is contributed by the brand.
David Haigh, CEO of Brand Finance, said in a press statement: “The value of the biggest tech industry brands does not come just from successful marketing campaigns, but rather, they are each based upon an authentic and obsessive focus on their customers. Amazon has built a brand that has no peer because they provide unmatched convenience, availability, and scale. Their brand is unconcerned with competitors. Instead, it is concerned with removing every possible impediment to customers using their services.”
Chinese Alibaba, Tencent & Huawei aim at global growth
Further down the top 10, three Chinese brands stands out– Alibaba (7th, up 58% to US$54.9 billion), Tencent (8th, up 83% to US$40.8 billion) and Huawei (9th, up 51% to US$38.0 billion) – all three demonstrated an ability to position themselves for global growth by leveraging the domestic market while moving up the tech brand value ladder.
Desktop-focused brands lose out over mobile
According to the report, Microsoft (up 6% to US$81.2 billion) and IBM (down 10% to US$32.5 billion) are the brands most closely associated with non-mobile services. Even though the companies do offer mobile services, Microsoft and IBM have been unable to compete in the mobile services industry against Amazon, Apple, and Google. Microsoft’s brand strength is associated with its Windows operating system and Office software which are primarily used on desktop devices, while IBM services are tied to its corporate computer technology.
Samsung holds steady as the tech sector’s strongest brand
In addition to measuring brand value, the Brand Finance Tech 100 report also analyses brand strength, which indicates what proportion of a business’s revenue is contributed by the brand itself. Samsung (up 51% to US$77.7 billion) jumped several places this year to become the tech sector’s strongest brand with a Brand Strength Index (BSI) of 93.0, an increase from 87.4 in 2017.
Featured Image: Amazon’s Seattle headquarters. SEASTOCK | Shutterstock
Infographic courtesy of Brand Finance.
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