A global finance report has painted a gloomy picture of the IT sector, as it reveals how top tech company values have dropped, wiping billions off their face value.
Brand Finance, an independent brand valuation consultancy which examines the performance of the top 100 global brands, revealed that Microsoft has seen its brand value drop by 12 per cent in a year, Cisco lost 15 per cent off its brand value and Google lost 12 per cent. Other IT giants named in the report included HP and IBM.
According to the Brand Finance Global 500 report, the enterprise value of the 100 most valuable globally branded businesses dropped by 13.3 per cent, the equivalent of $1.6 trillion. Equally worrying, the brand value of the 100 most valuable Global brands decreased by 4.2 per cent, equating to a drop of $67bn.
The report cited the rise in commodity prices, the credit crunch, tumbling share prices and unemployment as the main factors for the value crash.
David Haigh, chief executive of Brand Finance, said: “The significant drop could be symptomatic of individuals and businesses delaying upgrading software and hardware in the current tough economic climate."
However Samsung was among a handful of companies picked out for achieving growth during the difficult time, and two new IT firms entered the top ten brand chart. Vodafone secured ninth place and Nokia came in close behind at number 10.
“In the current climate, it is essential to understand the absolute value of brands and what drives their value,” added Haigh.
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