Apple leads the IT world in terms of profitability and logo recognition, as IBM lags.
That’s according to a recent study of 200 global companies by GraphicSpring. Data for the study comes mostly from recent Forbes rankings. Apple tops the study list, both in terms of profitability and logo recognition, which was universal among all generational groups.
“In terms of both profit and market value, Apple is leagues ahead of any other company in the world. When you compare sales among IT brands especially, Apple’s revenue is at $217.5 billion U.S., two and a half times that of Microsoft. The answer to why this is perhaps lies in branding,” comments Evan Fraser, Head of Marketing at GraphicSprings.
| Company | Operating Margins | Quarterly earnings growth (yoy) | Quarterly revenue growth (yoy) |
| Apple | 26.60% | 32.10% | 17.30% |
| IBM | 3.10 | 3.70 |
Source: Finance.yahoo.com 9/6/2018
Meanwhile, once technology leader IBM is nowhere to be found on the top ranks of the list.
“Apple’s logo is universally recognized across all generations, all over the world. Meanwhile, other tech conglomerates have lost ground with Millennials, with this study showing that recognition for companies like IBM has dropped over 40% in the last 50 years. By dominating the market with such a strong identity, Apple has ensured that consumers now buy into both the lifestyle the brand promises, as well as the product. It’s difficult to imagine any other company or logo outdoing Apple at this point in time.”
To be fair, IBM has been trying to come back recently. “On paper, IBM is doing everything right to try to compete with its younger, flashier tech competitors,” comments Evan Fraser, Head of Marketing at GraphicSprings. “From AI to blockchain, the IT behemoth of the 1980s is striving to become an industry innovator in the modern tech landscape. But is it a case of too little too late? Reputation and brand recognition is currency in the social media age, and unless IBM can engender an Apple-esque cult following in the very near future, then it risks fading into obscurity altogether.”
Wall Street has taken notice. Apple has been a stellar performer, as IBM struggles.
| Company | 12-month price change | 5-year price change |
| Apple | 38.11% | 236.51 |
| IBM | 1.45 | -24.18 |
Source: Finance.yahoo.com 9/6/2018
