Microsoft was just rated the third most-valuable brand in the world by Interbrand, but there are trouble signs ahead. The company’s brand value dipped 3%, the only top-tend brand to lose value in 2011. And both Apple and Google’s value surged during the year, with Apple’s value jumping 58% and Google’s 27%. At this rate, Google will soon surpass Microsoft and Apple won’t be far behind.
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Interbrand rates the value of the top 100 global brands, and publishes that list every year. The value of Microsoft’s brand, Interbrand found, was nearly $59.1 billion in 2011, down 3% from the year previous. It ranked behind Coca Cola, which was at number 1, and IBM at number 2.
Google came in at number 4, with a value of $55.3 billion. Its value surged 27% over last year. Its relative ranking is unchanged from last year.
Apple’s value, meanwhile, skyrocketed 58% in the past year, to nearly $33.5 billion, jumping to number 8, up from 17 a year ago.
Microsoft has been the number 3 most valuable brand since 2008. From 2000 to 2007, it had been ranked number 2, so its value relative to IBM has dipped slightly in the past decade, which supplanted Microsoft at the number 2 spot in 2008.
If Google and Apple keep growing at the same rate in 2011, and Microsoft slips 3% again, next year Google will beat out Microsoft at the number 2 spot, and Apple won’t be far behind.
Interbrand includes notes about each brand, and what it says about Microsoft accurately captures the company’s dilemma. After noting that Microsoft dominates operating systems, server software, and office suites, Interbrand notes:
This is both a blessing and a curse as the future of computing moves to the mobile space. Competitors continue to lure customers with mobile applications that turn individual devices into ecosystems. Google’s no-cost model will continue to put pressure on Microsoft’s profit margins, and Google Apps could threaten the Microsoft Office business with its competing cloud integration and collaborative tools.
I don’t agree that Google Apps will threaten Microsoft Office any time soon, but otherwise, I think Interbrand is on target. Interbrand also correctly rightly out that the Nokia deal, Windows 8, Kinect, and Xbox may help Microsoft in 2012.