Apple's brand value dips for the first time in 25 years: Interbrand report

After 25 years of uninterrupted growth, Apple's brand value has taken a hit. The tech giant, still the world's most valuable brand according to Interbrand's 2024 Best Global Brands report, saw a 3% decline, falling just below the $500 billion mark. This stark reversal follows a 4% increase the previous year, signalling a potential shift in Apple's dominance.

Since 2000, Interbrand's study has tracked the value of the world's biggest brands. A quarter century of analysis highlights a concerning trend: while performance marketing delivers short-term financial gains, neglecting long-term brand strategy has cost the world's top 100 brands a staggering $200 billion in lost revenue this year alone and at least $3.5 trillion since 2000.

Despite the dip, Apple retains its top spot, followed by Microsoft and Amazon, whose brand values surged by 11% and 8%, respectively.

Photo: Campaign Asia-Pacific

Interbrand attributes Apple's decline to a cautious approach to the burgeoning AI market. "While others rushed into AI, Apple has taken a more deliberate path," explains Greg Silverman, Interbrand's global director of Brand Economics. "This slower-moving act of leadership has put long-term trust ahead of short-term revenue gains." Silverman anticipates Apple's value will rebound in the 2025 rankings, citing a 20% year-to-date stock increase following the announcement of its generative AI offering, Apple Intelligence, and a partnership with OpenAI.

The automotive sector dominates the rankings, with 14 brands in the top 100. Ferrari (at spot 62) and YouTube (at spot 24) registered the largest spikes in brand value, per the report. Meanwhile, Tesla (at number 12) saw one of the biggest declines in brand value, with a 9% dip. Kia, Hyundai, and Toyota registered double-digit gains. 

Notable newcomers include Nvidia (#36), Pandora (#91), Range Rover (#96), and Nike-owned Jordan (#99)—the first personality brand to make the list. Silverman credits Jordan's success to its "globalisation on classic sports values," which foster deep emotional connections with consumers.

Luxury brands also saw a 7% value increase, driven by experiences that extend beyond the purchase. The report underscores the evolving role of CMOs in shaping growth strategies, while CEOs and CFOs prioritise short-term returns.

"Many of the world’s most valuable brands are missing out on significant earning potential by over-investing in short-term gains," warns Gonzalo Brujó, Interbrand's global CEO. "Our analysis shows these gains, when tied predominantly to short-term tactics, can undermine a company’s mid-to-long-term revenue potential."