A report by Brand Finance Global 500 2021 Index states that Apple has become the most valuable brand with an exceptional 87% growth in 2020. With an impressive $263.4 billion in brand value, the Cupertino tech giant has dethroned Amazon from the most valuable brand position, after five years.
Since the outbreak of the COVID-19 pandemic in March 2020, Apple has been successful in launching new innovative products like iPad Pro, iPhone 12, Apple Watch Series 6, M1 MacBook models, and updated services like Apple News, Apple TV+, Apple Fitness+ to accommodate the new online lifestyle for remote learning, business, social interaction, entertainment, and other needs. And it’s that “diversification strategy” which The brand valuation firm attributes to the company’s success in the past year.
Under Tim Cook’s leadership, especially over the past five years, Apple began to focus on developing its growth strategies above and beyond the iPhone – which in 2020 accounted for half of sales versus two-thirds in 2015. The diversification policy has seen the brand expand into digital and subscription services, including the App Store, iCloud, Apple Podcasts, Apple Music, Apple TV, and Apple Arcade. On New Year’s Day alone, App Store customers spent US$540 million on digital goods and services.
Apple leads the market, Amazon and Google lag behind
Driven by Steve Jobs’ philosophy and vision, current CEO of Apple Tim Cook has successfully expanded the company to the first U.S company to reach a $2 trillion market cap. Brand Finance found that in the year defined by lockdowns and stay at home norm, technological innovation increased brands value due to global dependence on digital communication.
“Accounting for 14% of total brand value in the 2021 ranking, tech remains the most valuable sector in the Brand Finance Global 500, with 47 brands represented and a combined brand value just shy of US$1 trillion at US$998.9 billion” with Apple on top of the market with $263.4 billion.
“As Apple reclaims the title of the world’s most valuable brand from Amazon five years since it last held the top spot, we are witnessing it Think Different once again. From Mac to iPod, to iPhone, to iPad, to Apple Watch, to subscription services, to infinity and beyond,” said Brand Finance Chief Executive David Haigh.
The report further details that Amazon secured the second spot with 15% growth to $254.2 billion. The services rendered by the retail company contributed to its growth in the COVID-19 pandemic, the highest since 2016. Unfortunately for Google, the pandemic had an adverse effect on the company. Although securing the third spot, the search engine giant saw a meager 1% growth to $191.2 billion.