Why do a lot of companies, especially the consumers firms, invest huge amounts of money and time to build their brands? Well, the reason is that brand name of a company is the most valuable asset that it can make. According to a Marketing professor at the University of Pennsylvania, David Rubenstein, there are two benefits that a company can derive from its strong brand name: more market share or volume and premium price for the shares.
And when we talk about premium stock prices and product mobilization, the name of Apple Inc. (NASDAQ:AAPL) comes automatically to our minds. According to market researchers, there are many other tablets and smartphones available in the market, which function better than iPads and iPhones, but the brand name of the company gives its products credibility, hence making the customers pay more for the same good that they can buy at a much lower price.
Apple Inc. (NASDAQ:AAPL) sold around 39.3 million smartphones during the most recent of its quarters, and it is expected to sell around 60 million iPhones during the current quarter of October to December. Not only this, but the company also shipped 5.5 million Macs and 12.3 million tablets during the previous fiscal quarter.
If we add all these figures together, the company’s name is worth around $124.2 billion, with its brand name seeing a 19 percent increase on yearly basis.
As far as the stock prices of Apple Inc. (NASDAQ:AAPL) are concerned, the company, during the most recent trading session of November 5, 2014, started its stocks at a price of $47.80 and closed at a price of $47.54.
The next company in this race is Microsoft Corporation (NASDAQ:MSFT) with a total worth of $63 million. The company’s brand name remained flat for the last 3 years; however, it has seen an increase of 11 percent in the most recent quarter. The reason for this change is reported to be the shift of Microsoft’s operations from software and PC models to cloud services.
The company struck a deal with NFL in the year 2013 for a total of $400 million. According to this deal, Microsoft was responsible for providing tablet computers with high resolution and downloading capabilities. Although the company has made quite a name in the tablet industry but it still needs to go a long way if it wants to compete against Apple.
The next company in line is Google Inc (NASDAQ:GOOG). Google is currently at the number 3 spot with a total brand value of $56.6 billion, which is up 19 percent on yearly basis. Google generates its revenues from ad postings. The company generated around $16 billion for the last 12 months, and it is also the biggest spender on ads in the technology sector of the market, with expenses as high as $2.8 billion for the year 2013.
Google Inc (NASDAQ:GOOG) is also doing remarkably well on its stocks, with market capitalization of $377.54 billion and beta of 1.17.
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