Monday, 30 September 2013

Apple is the world's most valuable brand

Apple has today been revealed as the world's most valuable brand, knocking Coke off the top for the first time ever. Interbrand set up the rankings 13 years ago and it's based basically on things like market value and how recognisable the brand is. I wouldn't expect this to have too huge an impact on the share price of either of these companies though as they're both pretty big blue chips I would say (Coke more so than Apple) So these "most valuable brands" are unlikely to receive takeover bids because their brand identities are so strong by itself, plus they're so big that the companies which could afford such an offer are unlikely to be interested (e.g. would Exxon Mobil really want to acquire the apple brand and become a more complex conglomerate?). Interbrand still puts Coca-Cola as the world's most recognisable brand. I'd still pick Coke as a better long term investment, people in developing countries view it as a cool import from the West and there is still plenty of growth for Coke in these markets. When I think of Apple, I can only think of its incredibly quick rise to fame with its iPod, and that in a few years no-one will be using them or iPads and that mobiles will have changed so much again that Apple might not have the leading technology anymore. Just think about how massive the Nokia and Motorola brands were, and how much they've faded away quickly. Even Microsoft could start to decline as more and more people use their smartphones instead of laptops if Microsoft continues to struggle to really get a breakaway hit in that market. So, anyway, Coke still gets my vote.


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