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MIT's World's 50 Smartest Companies -- Where Is Apple?

This article is more than 8 years old.

Nowhere. That’s right, nowhere.

If that comes as a surprise to Apple fans, there is an even bigger surprise about this list. Apple’s China competitor (imitator?) Xiaomi is #30 on the list!

Is that an aberration, or bad weighting criteria that favors a young versus an established technology company?

Possibly either. But Apple is way down on the patent list, which is topped by IBM and Samsung. Another aberration? Possibly not.  “Apple is living on past reputation,” one of my readers declared in a previous piece.

I wouldn’t go that far. It may be too early for such declaration. At least, Wall  Street -- and consumers -- seems to think so.

Apple topped last year’s Barron’s list of the World’s Most Respected Companies among institutional investors—beating  Berkshire Hathaway Boeing  and  Google .

Apple’s re-claim of a position at the top of the list reflects a strong rebound in the company’s stock, and is a vote of confidence for the company’s leader Timothy Cook.

Apple received high marks among institutional investors in all five categories surveyed: strong management, sound business strategy, ethical business practices, competitive edge, and revenue and profit growth.

Apple’s Key Financial Metrics

Forward PE 13.11*
Operating Margin 30.15%
Qtrly Revenue Growth (yoy) 27.10%
Qtrly Earnings Growth (yoy) 32.70%

Source: Finance.yahoo.com

Institutional investors praised Apple for its stockholder friendly policies -- like a boost in its stock buy back program, and an increase in its quarterly dividend. Their praise for Apple follows an on-going vote of confidence from consumers that has helped the company make it to the top of Forbes Most Powerful Brands list and Interbrand’s  list.

“Apple has appeared on Interbrand’s Best Global Brands ranking since 2000, when the ranking debuted,” states the Interbrand report. “In 2000, Apple ranked #36 and had a brand value of USD $6.6 billion. Today, Apple’s brand value is USD $98.3 billion– almost 15 times the amount of its brand value in 2000. Apple’s meteoric rise in brand value can be attributed to the way it has created a seamless omnichannel experience for customers. By keeping consumers at the center of everything it does, Apple is able to anticipate what they want next and break new ground in terms of both design and performance.”

That’s why Wall Street is so anxious about Apple’s next big thing.

Will Apple live to its past reputation?