Proof of Brand Value

01.27.10 by Jim O'Gara

The next time you get into a debate at your company with regards to brand value or investing in branding – simply refer to the success Apple has experienced with its brand.

 

Monday, Apple released its first fiscal quarter earnings and year-over-year revenue increased by $4 billion (totaling $15.68B).

 

The growth was driven primarily by iPhone sales that more than doubled and Macintosh sales that increased by 33%.

 

Apple is the ultimate case study in building brand value and as a result, being able to demand a premium price for innovative products. While you can buy a PC for $400, why are more and more people spending 3-5 times that for an Apple product? It’s simple, they have built a brand that has developed a cult following and as a result the company has experienced great success – even in this down economy.

 

Earlier this week in the Wall Street Journal, Edward Jones analyst Bill Kreher (in what may be the understatement of the year) summed it up by stating: “What this (the fiscal report) demonstrates is the strength of Apple’s brand in good and bad times.”

 

Today, Apple only strengthened its brand value with the release of the iPad.  According to Apple, this new device will transform the way we read books,listen to music, watch videos and consume digital content. 

 

 

So for all of us who forget the long-term financial and customer loyalty benefits that can be attained through persistent branding, it’s time to wake up and smell the coffee – when it comes right down to it, it’s all about the brand.

 

* photo credit: Jim Wilson/The New York Times 

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