Apple has lost its title as the most valuable brand in the world to global e-commerce and tech giant Amazon, according global brand valuation firm Brand Finance.
Amazon took the top spot despite its brand value falling 15 percent this year from $350.3 billion to $299.3 billion, said the report. The company held the title in the 2020 report with a value of $220.8 billion but lost ground to Apple in 2021 and 2022.
This year, Apple was in second place with a value of $297.5 billion, down by 16.2 percent on a yearly basis.
According to Brand Finance’s report, “Global 500 2023”, while Amazon is back at No 1, its brand value has fallen by over $50 billion this year, with its rating slipping from AAA+ to AAA.
The report also noted that customer perception of customer service at Amazon has fallen – at the same time as delivery times have lengthened – and in concert with this, consumers have become less likely to recommend Amazon to others. Concurrent with the conclusion of pandemic restrictions, people are returning to shopping in-person, slightly mitigating the need for online retail.
“Technology brands across the world have lost significant value in response to shifting demand patterns,” said David Haigh, Chairman and CEO of Brand Finance.
“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.”
There was a total of 48 tech brands that featured in the ranking, two down from the 50 in 2022, after Snapchat and Twitter dropped out.
Other tech-focused brands to lose value include Samsung Group (brand value down seven percent to $99.7 billion), Alibaba.com (brand value down 56 percent to $10.0 billion), Facebook (brand value down 42 percent to $59.0 billion) and WeChat (brand value down 19 percent to $50.2 billion).
A tough year for the tech industry
The past year has been a rocky one the technology firms with many major players including Amazon, Meta, Twitter and more announcing massive layoffs.
Earlier this month, Amazon announced job cuts that would affect 18,000 employees across its business including Amazon Stores and its human resources department.
Facebook-parent Meta also announced 11,000 job cuts, the largest in the firm’s history. Twitter also axed thousands of jobs after Elon Musk bought the company for $44 billion.
