How Apple became the world's most valuable brand
by https://www.creativebloq.com/author/manfredi-ricca · Creative Bloq
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This month, Apple celebrates its 50th anniversary. Half a century since Steve Jobs, Steve Wozniak and Ronald Wayne designed a simple, affordable computer called the Apple I in Jobs’ garage. This was the first step in what would grow to become the most successful, most valuable brand in the world.
What has followed is a stream of products – Macintosh, the iPod, the iPad and, of course, the iPhone – that have not only changed the tech game but the world. The brand’s continued commitment to pushing the needle and introducing products capable of changing people’s day-to-day lives – and accepting a handful of flops along the way – has been behind its growth into an almost $4 trillion business.
And now, as it heads into its 51st year, Apple is entering a new chapter of leadership, with John Ternus at the helm.
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The Apple II
What may be less obvious is that, since Job’s comeback in 1997, the company's underlying success has been down to it competing on brand in a category where others originally didn’t. Its obsessive focus on designing around simplicity, beauty and humanity created an allure unlike any other.
This was in its genes of course – rather than appealing to a niche market of hobbyists, it made personal computers sexy with the breakthrough of the Apple II in 1977.
Working with the very best brains to establish the brand as a champion of creativity and innovation, Apple went on to appeal to a larger market than other competitors had ever reached. Who wouldn’t want to think different?
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What may be less obvious is that the Apple II was the brand’s nascent move and shift towards increasing the Apple brand’s role in driving choice. A smart move that, in a fast changing category, enabled Apple to compete on the single asset that isn’t replicable – its brand. As a result, today that brand is arguably the single most effective and enduring competitive moat.
The road to number one
The brand itself signalling the start of its phenomenal drive for game-changing tech. Jobs and Wozniak understood what was needed in this industry and how to create a brand that wouldn’t be just trusted but, actually, desired; a brand that people wouldn’t just use but want to be associated with. (Wayne had sold his 10% stake just 12 days after founding, for about $800 as he was concerned about the financial risk – a stake which would now be worth billions). They knew innovation was the key in a tech sector that was increasingly targeting the at-home market – but they also understood it would never be a long term differentiator.
Despite the popularity of the Apple II and Macintosh, the road to number one was a long journey. Today, Apple has retained its position as the world's most valuable brand in Interbrand's Best Global Brands ranking for the past 13 years, sitting confidently above Microsoft and Amazon.
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The iMac rewrote the rules of what a home computer looked like
But in the early 2000s, Apple was still recovering from its 1990s struggles of a confusing, overcrowded product line, and fierce competition from Microsoft. The iMac (launched in 1998) rewrote the rules of what a home computer looked like with its rainbow selection for every taste, proving a machine could be an object of desire. It helped its position, but the company hadn’t yet become the mass consumer powerhouse that it is today.
What changed between the early 2000s, when Apple was outside the top 25 Best Global Brands, and 2013, when it reached the top spot, was Apple’s understanding of human motivations and renewed focus on its brand reputation. Macintosh put Apple on the map due to its usability, but the iPhone, iPod and iPad fulfilled a much stronger need for its customers. Its products aren’t just innovative in a technological sense, they enhance people’s lives, perhaps before people even know what they need. It made functional products highly desirable, creating a level of aspiration, alongside a loyal brand fanbase. It not only championed beautiful design, but it also made it accessible to the masses.
Customers into evangelists
By elevating design in this way, Apple turned customers into evangelists, and it gave them a temple in the Apple Stores, a big bet in a category that was moving to online commerce.
Around half a million iPhones were sold in the first weekend, with some people queuing for over 24 hours to be the first to get their hands on this world-changing device. Today, iPhone revenue is at an all-time high as Apple’s total company revenue reached a record $143.8 billion. This fan base isn’t served just by one product, but an extraordinarily powerful ecosystem, as well as an ethos around privacy. Today, there are two camps – Apple or Android, and this, for many, is a lifelong commitment and a testament to the role both brands play in our lives.
The next chapter
Looking at Apple’s position as the Best Global Brand for the past 13 years, sitting above Microsoft (#2) by $82 billion in brand value, it may appear unassailable. However, brands only stay ahead by moving with the times and moving fast.
As Ternus steps into the role of CEO, his focus needs to be on Apple’s AI acceleration. He can’t be hesitant as new technology and trends come in. In Apple’s case, its brand value has started to decrease in the past two years, primarily due to its cautious, slower-moving approach to generative AI compared with competitors. As a brand that has always been at the forefront of innovation, its hesitance to adopt AI at the same pace as its competitors is seemingly somewhat off-brand (then again, some commentators would suggest that Apple has never been a first mover in technology, but the best at making it usable and desirable – perhaps the jury’s still out).
Ternus will need to move quickly
For the first time in over a decade, Apple could see its competitors start to creep up behind it. Microsoft was an early mover in AI with a broad rollout and heavy investment. It has moved fast and aggressively. The same can be said for Google, which has launched and expanded new products such as its Gemini chatbot, AI overviews and the use of AI across its Android devices.
Apple’s focus on assembling technology to address human motivations has served it well, and it’ll be tricky for others to catch up. But AI is the ultimate disruptor, and it is entirely possible for other brands to storm ahead with the right investment and attention. Ternus will need to move quickly. Remain hesitant, and we could see one of the other big players take the crown as the world’s most valuable brand.
For more on Apple, see Apple's best 100 products.