According to global brand valuation company Brand Finance, e-commerce and technology behemoth Amazon has surpassed Apple as the most valuable brand in the world.
In the Middle East, Saudi Aramco, Adnoc, and Etisalat remained the Middle East’s top brands, the company’s Global 500 2023 report said.
Read more:
Al Futtaim launches economic progress tracker at Davos
The research noted that Amazon overtook Apple despite a 15 per cent decline in brand value this year, from $350.3 billion to $299.3 billion. With a value of $220.8 billion in the 2020 report, the corporation claimed the top spot, but Apple overtook it in 2021 and 2022.
This year, Apple came in second with a valuation of $297.5 billion, a decrease of 16.2 percent from the previous year.
While Amazon is back at the first spot, according to Brand Finance’s report, its brand worth has decreased by more than $50 billion this year, and its rating has dropped from AAA+ to AAA.
According to the survey, consumers are now less inclined to suggest Amazon to friends as their opinion of the company’s customer service has decreased, concurrently with longer delivery durations. People are starting to purchase again in-person in tandem with the lifting of pandemic restrictions, which somewhat reduces the demand for online retail.
This has come during a tough year for Amazon and other big tech companies. Earlier this year, Amazon had announced it would lay off 18,000 employees across its business including Amazon Stores and its human resources department.
Don’t miss:
7 questions with…Suood Abdul Rahman Ali
“Technology brands across the world have lost significant value in response to shifting demand patterns,” David Haigh, Chairman and CEO of Brand Finance told ITP.net.
“Inflation has affected brands across many sectors, but as consumer habits partially revert to pre-pandemic patterns, demand for the services of tech brands has been hit particularly hard. Additionally, disrupted supply chains, labour shortages, and greater obstacles to financing have left their mark” Mr Haigh said.
Forty-eight tech companies in total made up the ranking, two fewer than the 50 featured in 2022 after Snapchat and Twitter dropped out.
Other tech-related firms that have seen value declines include WeChat (down 19 per cent to $50.2 billion), Alibaba.com (down 56 per cent to $10.0 billion), Facebook (down 42 per cent to $59.0 billion), and Samsung Group (down 7 per cent to $99.7 billion).
In Saudi Arabia, Aramco’s brand value is up 4 per cent to US$45.2 billion and is the most valuable brand in the Middle East region in the Brand Finance Global 500 2023 rankings. Meanwhile in the UAE, Adnoc is the second most valuable brand in the Middle East region with a brand value of US$14.2 billion. The brand’s value has grown by 11 per cent over the past year and has a corresponding Brand Strength Index score of 79 out of 100.
Etisalat by e& was also mentioned by the report as a top brand, valued at US$10.5 billion, with the combined value for all e& branded operations at US$11.7 billion (up from a combined value of US$10.1 billion in 2022). The e& group, present across 16 countries, operates several other branded operations and boasts the most valuable portfolio of telecom brands in the Middle East and Africa, exceeding US$14 billion.
“As the telecommunication industry continues to struggle with commoditisation, e& has taken the bold and necessary step to reposition its brand identity to unlock new opportunities and services.” Mr. Haigh was quoted to have said in the report.
“The ongoing brand evolution enhances the ability to branch out into new services as well as stepping up from being a strong regional player to being a brand with global aspirations.” Mr Haigh said.
Abu Dhabi-based e& changed its name in February 2022 in an effort to become a multinational technological investment company.
A solid performance for the technology sector in the midst of a challenging year for the sector was made by Amazon, Apple, and Google rounding out the top three most valuable brands in the world.
