Apple retained its overall second position according to the complex formula used …
Seven of the top ten most valuable American brands are tech companies:
It’s not the first time the world’s most valuable company has come second in ‘brand value’ rankings. Apple came 2nd to Google in the BrandZ rankings last month. However, Brand Finance’s methodology does seem especially convoluted and opaque.
You can read about the 7-step calculation used on page 25 of the report. Suffice it to say we don’t think it will keep Tim Cook awake at night.
Brand Finance calculates the values of the brands in its league tables using the Royalty Relief approach – a brand valuation method compliant with the industry standards set in ISO 10668.
This involves estimating the likely future revenues that are attributable to a brand by calculating a royalty rate that would be charged for its use, to arrive at a ‘brand value’ understood as a net economic benefit that a licensor would achieve by licensing the brand in the open market.
