Apple Boots Nokia Out of Top 10 Brands List
Interbrand has come out with its annual list of the world's most valuable brands.
There wasn't any change in the rankings among the first seven entrants. Pop star Coca-Cola (KO) continues to lead the way, its name assessed by Interbrand to be worth a whopping $71.9 billion.
IBM (IBM), Microsoft (MSFT), Google (GOOG), GE (GE), McDonald's (MCD), and Intel (INTC) follow.
Then we get to the eighth slot. A year ago, Finland's Nokia (NOK) earned that spot as the world's largest maker of wireless phones. Now, the space belongs to Apple (AAPL), after its brand value jumped 58% to $33.5 billion.
Nokia's Slip Is Showing
Nokia didn't just drop down a notch on the list. It slipped all the way down to No. 14 after an embarrassing double-digit percentage decline in its brand value.
It's fitting that Apple replaced it: The reason Nokia's brand is diminishing in appeal is that its handsets are losing ground to Apple's iPhone and Google's Android.
It's important to remember that Interbrand isn't basing these rankings on companies' market capitalization. Investors value Apple greater than they do any of the seven companies ranking ahead of it on this list. Interbrand is simply determining what these marquee brands themselves are worth.
It's easy to question the method to the math-ness. Nokia is a $25 billion brand according to Interbrand, yet the stock commands a market cap of $19 billion and a cash-adjusted enterprise value of a mere $13 billion.
However, the fact that Apple has overtaken Nokia as the mobile brand of choice is hard to dispute.
It's an Apple World We Live In
Riots broke out in Beijing and Shanghai when the iPhone 4S was introduced in China last week. There were more patrons braving the cold to grab one of Apple's iconic handsets than the authorities were able to control.
The move forced Apple to temporarily halt sales in those two cities from Apple-owned stores. When's the last time folks were lining up for a Nokia device?
Don't be surprised to see Apple climb even higher next year. Sorry, Intel. You're going to be toast.
Longtime Motley Fool contributor Rick Munarriz does not own shares in any of the stocks in this article. The Motley Fool owns shares of International Business Machines, Google, Microsoft, Intel, Apple, and Coca-Cola. Motley Fool newsletter services have recommended buying shares of Microsoft, Intel, McDonald's, Coca-Cola, Apple, and Google. Motley Fool newsletter services have recommended creating bull call spread positions in Microsoft, Intel, and Apple.