As the world’s tech companies gathered this week in Barcelona for the Mobile World Congress, Brand Finance has released its annual review of the state of their brands, the Brand Finance Tech 100.
Key Findings:
- Apple extends lead with record breaking US$145bn brand value
- Galaxy S6 restores Samsung’s brand rating to AAA
- Qualcomm takes brand value hit following Snapdragon 810 fiasco
- Uber enters table with US$11bn brand value
- WeChat grows brand value by 83%
Apple Not Rotten Yet
With a value of US$145, Apple remains the world’s most valuable brand. Despite annual predictions of a plateau or fall from grace, brand value is up 14%. Revenue for the last three months of 2015 was a record-breaking US$75.3 billion. Though there has been much disappointment about slowing growth, this must be seen in the context of an exceptional period at the end of 2014 following the release of the iPhone 6. To not just maintain but increase sales in a saturated market is encouraging and assertions that Apple has gone rotten are premature.
Snapdragon Leaves Qualcomm Red-Faced
Qualcomm is one of this year’s biggest losers in the technology table, brand value has taken a 17% dip whilst the brand rating has been downgraded from AA+ to AA. This is largely due to the fact that the company’s flagship processor, the Snapdragon 810, was nothing short of a disaster. Qualcomm’s highly anticipated processor was found to overheat and malfunction when subjected to heavier workloads. The issue was so critical that Samsung dropped the Qualcomm processor from its extremely popular Galaxy line. Qualcomm lost a year’s worth of orders from one its biggest clients, and the consequent damage to brand value is clear.
S6 & S7 Restore Samsung’s Image
Samsung’s brand rating, which indicates the strength and future potential of the brand, has been restored to AAA this year thanks in part to the positive reception of the Galaxy S6. Critics raved about the significantly improved design, which also put the Galaxy S6 on the radar of voguish iPhone users. The recently unveiled Galaxy S7 looks to follow in the footsteps of its predecessor but adds features such as water resistance, extended battery life and the sorely missed expandable storage option. Revenues have also improved this year, most of them coming from Samsung’s semiconductor business which produces chips for most smartphone manufacturers, including, ironically, their fiercest rival, Apple.
Uber Starts Well but has a Tough Road Ahead
Uber has firmly established itself in the top end of this year’s technology table with an impressive brand value of US$11bn. This makes the ride hailing app’s brand more valuable than industry giants such as Panasonic, Dell and Sony. However challenging times could lie ahead. Uber launched its new logo with great fanfare this year, however the colourful geometric shapes that make up the new identity failed to impress. Critics were quick to label the new logo ’unattractive’ and ‘ambiguous’. The backlash resulted in Uber’s head of design stepping down only a day after the new identity was revealed. Uber continues to face regulatory challenges in the west, as the company is bombarded with protests and lawsuits from taxi unions and transport authorities while in the east, the company struggles to turn a profit. This is largely due to fierce competitors, such as Didi Kuaidi, which is the favoured low-cost ride hailing company in China.
WeChat Nearly Doubles
WeChat increased its brand value by 83% this year, making it one of the fastest growing brands in the technology table. The messaging app, which also offers a payment platform, has seen rapid growth, with registered users totalling at an astonishing 1.1bn, out of which 100m are based outside of China. Tencent, the holding company that owns and operates WeChat, recently announced that WeChat will start charging its users for payment transactions in March 2016, a move that could boost revenues even higher.
The World’s Most Valuable Tech Brands (Top 10):
* Click on graph for an enlarged option.