If Apple's Not Cool Anymore, Why Is Its Brand So Valuable?

Tech ads continue to poke fun at Apple (NASDAQ: AAPL  ) . Samsung has its ongoing campaign that depicts Apple customers as cultish and blind to the better alternatives from Samsung. Microsoft compares its Surface to Apple's iPad Air to show the features it has that Apple's iPad Air doesn't. And now even Amazon has joined in with its own attack on the iPad Air in a new ad. Some consumers might conclude, based on these ads, that Apple is losing its cool. But is this really a legitimate concern? Not according to Forbes' updated list of most valuable brands.

According to Forbes, Apple's brand is still the most valuable brand in the world. And Apple's brand value actually increased over last year. As Fool contributor Daniel Sparks discusses in the video below, Forbes' assessment of Apple's brand makes sense-- and it's evidence that investors shouldn't be concerned about Apple's cool factor.

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  • Report this Comment On December 05, 2013, at 10:33 PM, Drichter wrote:

    That's a bit of a logical fallacy. Apple does not have to be cool to be valuable.

    The driving force behind Apple's appeal to mainstream consumers is no longer primarily its 'cool factor'. If anything that's beginning to diminish, albeit at a pretty slow rate. Like any fad, the novelty fades with time.

    But they are still successful, because in the eyes of your average shopper, Apple is not necessarily the coolest thing... but generally the safest thing. For the people who know little to nothing about computers (or tablets, or phones) that perception of safety is paramount, and now that they've established themselves via nice products and clever marketing they need only maintain that perception.

    If you take a look at some of the Apple product reviews you can actually see how the bar has been lowered for them, as reviewers rave about the best iPad or iPhone - not tablet or cell phone - yet, playing up strengths and dismissing weaknesses of the brand in ways that resonate well with consumers.

    So long as that trend continues, Apple has a pretty bright future ahead.

  • Report this Comment On December 06, 2013, at 7:21 AM, Mathman6577 wrote:

    The coolness is still alive among the Apple Cult.

  • Report this Comment On December 07, 2013, at 8:54 PM, Jimbo5319 wrote:

    Apple is continuing to ride high for now both with both the zealots and masses looking for a safe bet. However, this is very much like the old Ford Model T which was vastly popular and came in only ONE color - black - much like the limited selection of Apple phone models today. Samsung, Microsoft and Amazon are also very "safe bets" and offer the choice which all markets ultimately gravitate towards. Plus even the zealots eventually are going to figure out how screwed over financially they are by the closed Apple ecosystem. Apple has boxed itself into a corner - sticking with the limited selection strategy for now will retain the zealots but lose the long term competitive battle, while copying the choice variety of the competitors will only result in revealing the "emperor has no clothes" and is just like every other competitor. Smart phones are not like a BMW or Mercedes - a long term major investment with decades of brand recognition. Just as Sony and Blackberry found out for electronics products it doesn't take much to get pushed off the top of the mountain.

  • Report this Comment On December 07, 2013, at 9:05 PM, Jimbo5319 wrote:

    One more point - Apple doesn't own any core hardware technology unlike Samsung. Hence, not only does Samsung have some proprietary hardware advantages all the hardware available to Apple is also available to Amazon and Microsoft. Note that both these competitors are willing to essentially give away the smart phones/tablets to support other financial interests.

    Hence, Apples hugh profit margins are going to be extremely difficult to justify long term,

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