Technology Brands Top Ranking
Five of the top 10 most valuable brands in the BrandZ Top 100 are technology companies. The rapid ascent of these companies and their high brand values reflect the strength and velocity of the technology category, which grew by 8 percent last year.
Companies in the technology category include hardware, software, and service providers aimed at both consumers and business users. They share a common need to rapidly innovate in order to remain competitive in a category that is about constant change.
The key changes are driven by the digitalization of information. This has enabled the convergence of voice and data services, increased portability (see related story about mobile phones), and a shift from a model of information storage based on the personal computer to a Web-based alternative called cloud computing.
In the hardware sector, these changes are likely to mean an increase in popularity for laptops over PCs and also for netbooks. Due to increased price competition, there will also be lower margins on these products. The rising popularity of online search advertising, which is cheaper than display, is benefitting Google who own 73 percent market share in this area.
Touch Screens Ignite Interest in Handhelds
It does not hurt when the President of the United States refuses to part with your product.
Barack Obama’s demand to keep his BlackBerry in the White House reflects the high level of attachment that many people feel with this brand. Its huge increase in brand value this year was due to its success in appealing to consumers as well as business users. The development of the BlackBerry Storm with its touch screen was a key part of this strategy. With mobile phones now in the hands of about half the earth’s population, the category is maturing. The innovation cycle does not seem to be slowing but, the average cell phone user only purchases a new phone every 18 to 24 months.
This disconnect between the rate of innovation and the purchase cycle means that consumers are likely to appraise the product offering closely during each shopping visit. This makes the role of the retailer in guiding the purchase decision particularly important.
