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The World’s Most Valuable Brands 2019: Apple On Top At $206 Billion

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Apple’s iPhone sales have dropped in recent quarters, particularly in China, where cheaper rivals Huawei Technologies and Xiaomi have gained traction. Smartphone revenue fell 17% for the latest three months to $31 billion, but the stock jumped 5% on the results. One big reason: record-high services revenue.

The company’s services division includes its App Store, Apple Pay, iTunes, cloud services and more. It is now the second biggest segment for Apple after the iPhone, with revenue of $37 billion in 2018, and Morgan Stanley expects it to top $100 billion in 2023. The projected growth speaks to the power of the Apple brand.

Click here for the full list of The World’s Most Valuable Brands

Apple tops Forbes’ annual look at the world’s most valuable brands for the ninth straight time. The brand of the tech giant is worth $205.5 billion, up 12% over last year. It is the first time a brand crossed the $200 billion threshold.

Apple has made an art form of moving its customer base from one product category to another. Mac users adopted the iPod, followed by the iPhone, iPad and Apple Watch. Customers trust the brand will work seamlessly across all categories in the Apple ecosystem, which has helped make the Cupertino, California-based company the most valuable in the world. Services is the next frontier for the company and brand.

While Apple maintains its spot at the top, Google is closing fast with a value of $167.7 billion, up 23%. The Apple brand was worth more than twice as much as the ubiquitous search brand just four years ago.

READ MORE | The World’s Most Reputable CEOs 2019

Google has cornered the global search engine market with a 92% share over the past 12 months, according to StatCounter (Bing, 2.6%, and Yahoo, 1.9%, are miles behind). Like Apple, Google has used its brand to move into other categories of consumers’ everyday life from email to Web browsing to maps to cloud storage.

While many global consumer brands struggle with the changing habits of their customers, the biggest tech brands continue to be juggernauts. Microsoft ($123.5 billion) and Amazon ($97 billion) round out the top four and both jumped more than 20% in value.

One tech brand that was dinged over the past 12 months is Facebook, which ranks fifth overall. It was the only brand in the top ten to fall in value, to an estimated $88.9 billion, down 6% from last year. The number of active Facebook users reached 2.4 billion this year, but the social media brand has been hampered by concerns around data protection, privacy policies and fake news.

Coca-Cola is the top brand outside of tech, with a value of $59.2 billion, up 3%, and ranked sixth overall.

Brands: By The Numbers

The 100 most valuable brands are worth a cumulative $2.33 trillion, up 8% over last year. Tech brands were the top gainers, led by e-commerce giant Amazon, up 37% to $97 billion. Other big winners: Netflix (+34%), Google (+27%) and Adobe (+27%). H&M had the biggest fall, down 12% to $11.5 billion. The Swedish retailer has struggled and cut prices last year on clothing to clear excess inventory. More than 20 brands declined in value, including ESPN (-10%), GE (-8%) and Hyundai (-8%).

U.S. companies landed 56 brands among the top 100, as well as 80% of the top 10. Germany (11 brands), France (7) and Japan (6) were the next most prolific countries of origin. Brands from 16 countries made the final cut.

In addition to the proliferation of tech brands (20 of the top 100), financial services (13), automotive (11), consumer packaged goods (10) and retail (8) were the most common industries.

Methodology

We began with a universe of more than 200 global brands, which include both corporate and product brands. We required brands to have more than a token presence in the U.S., which eliminated some large brands like multinational telecom firm Vodafone and Chinese e-commerce behemoth Alibaba.

Our first step in valuing the brands was to determine revenue and earnings before interest and taxes for each one. We gathered these from company reports, Wall Street research and industry experts. Forbes averaged earnings before interest and taxes (EBIT) over the past three years and subtracted from earnings a charge of 8% of the brand’s capital employed, figuring a generic brand should be able to earn at least 8% on this capital.

Forbes applied the corporate tax rate in the parent company’s home country to that net earnings figure. Next, we allocated a percentage of those earnings to the brand based on the role brands play in each industry. Brands are crucial when it comes to beverages and luxury goods, but less so with airlines and fuel, when price and convenience are more important.

To this net brand earnings number, we applied the average price-to-earnings multiple over the past three years to arrive at the final brand value. For privately held outfits we applied earnings multiples for comparable public companies.

-Kurt Badenhausen; Forbes Staff

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The World’s Highest-Paid Soccer Players 2019: Messi, Ronaldo And Neymar Dominate The Sporting World

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This past season marked the end of an era in soccer, or football to those outside of the United States whose eyes were about to bleed.

For the first time in a decade, not a single matchup took place between the two greatest players in the world, Lionel Messi and Cristiano Ronaldo. Their epic 30-match run of El Clásico clashes, the name for the fixtures between Barcelona and Real Madrid, bitter rivals and the world’s most valuable soccer clubs, came to an end last summer when Ronaldo left Spain’s La Liga to join Juventus in Italy’s Serie A.

Also for the first time in over a decade, neither Messi nor Ronaldo won FIFA’s coveted Player of the Year Award, voted on by the international media, national team coaches and national team captains. Luka Modric, Ronaldo’s former Real Madrid teammate and captain of the Croatian national team, took that trophy home.

But as sad as the loss of this rivalry was for fans—including Messi, who admitted to missing competing against Ronaldo—it seemingly had little effect on either superstar’s performance or purse.

READ MORE | Lionel Messi Claims Top Spot on Forbes’ 2019 List Of The World’s 100 Highest-Paid Athletes

For the second year in a row, Messi takes the top spot among the World’s Highest-Paid Soccer Players, with earnings of $127 million. Thanks to the contract extension he signed in November 2017 that commits him to Camp Nou through June 2021, he hauled in $92 million in salary and bonuses before taxes, a 9.5% bump over what he made on the pitch last year.

Part of that increase came by way of performance-incentive pay. The 32-year-old striker topped La Liga’s charts for both goals (36) and assists, marking his fifth season of 35 or more goals. It was also his sixth season in which he scored 50 or more goals across all club competitions.

He shone brightly in the club’s run-up to quarterfinals of the UEFA Champions League, with the Argentine the top goal scorer of that competition, hitting the back of the net 12 times in 10 appearances.

To an already-rich list of sponsors off the pitch, including lifetime partner Adidas, Mastercard and PepsiCo soft drink and snack brands, Messi added high-end watchmaker Jacob & Co. to his portfolio this year. His first signature timepiece is a limited edition of 180 starting at $28,000.

More recently, he partnered with MGO—a brand portfolio company whose chief creative officer is Tommy Hilfiger’s sister, Ginny Hilfiger—to create a signature line of clothing. It is expected to launch in July on the Messi Store, a global e-commerce site.

READ MORE | World’s Highest-Paid Athletes 2019: What Messi, LeBron And Tiger Make

Ronaldo earned $109 million to come in at No. 2 among the sport’s top earners. It is a negligible increase over his tally last year, a result of taking what amounted to a pay cut to join Juventus after nine years with Real Madrid. His current four-year playing contract pays him a gross annual salary of $64 million and contains no bonus or incentives, per sources close to the deal. But hold back your tears for him.

After nine years with La Liga’s Real Madrid, Cristiano Ronaldo surprised the world on July 16, 2018, with news of his move to Juventus in Italy’s Serie A. (Photo credit: Miguel Medina/AFP/Getty Images) GETTY

Under the Italian tax code, Italian-sourced income, like the salary Ronaldo earns playing for Juve, is taxed at an ordinary top rate of 43%. Outside earnings are treated differently, though, and are subject only to a single, flat tax of about $115,000.

This structure bodes well for Ronaldo, a walking billboard who pitches products head to toe and earned $44 million last year doing so, almost entirely outside of Italy. It also softens the blow he was dealt this past January when he pleaded guilty to tax fraud in Spain for concealing income from commercial image rights earned between 2010 and 2014 and was ordered to pay a $21.6 million fine.

The 34-year-old Portuguese winger is making out well on the pitch, too. He scored 21 goals to lead Juventus to its eighth straight Serie A title and in the process became the first player to win league titles in Italy, Spain and England.

By Forbes’ estimates, assuming he keeps his playing contract and current sponsors and partners (amid an open sexual assault case filed against him in U.S. federal court), Ronaldo is on pace to become the third active athlete to crack the $1 billion mark in career earnings this upcoming season.

Golfer Tiger Woods was the first to do so in 2009, followed by Floyd Mayweather in 2017. (Michael Jordan joined the billionaire athlete club in retirement largely because of his deal with Nike and is now worth $1.9 billion because of his ownership of the Charlotte Hornets.)  

READ MORE | Masters Champion Tiger Woods: By The Numbers

Paris Saint-Germain’s Neymar Jr. made $105 million last year to round out the top three highest-earning soccer players. His transfer from Barcelona to the French capital stands as the most expensive in the world at $263 million, and his five-year, $350 million total in salary and bonuses will keep him near the top of this list through June 2022.

Neymar partnered with Diesel to launch a signature fragrance in May 2019. (photo credit: Julien Hekimian/Getty Images for Diesel) GETTY

If a report by state-owned public television station France 2 is to be believed and his contract contains a behavior clause bonus, the 27-year-old Brazilian striker may not see all of that money. In the past three months, he’s made international headlines for all the wrong reasons.

In April, UEFA handed him a three-match suspension for insulting match officials on Instagram after Paris Saint-Germain lost to Manchester United in the Champions League. He will miss half of the group-stage competition next season. The same week, he was caught on video getting into an altercation with a fan in the stands after PSG’s loss in the French Cup and was subsequently handed a three-game suspension by his own club.

Following that, his national team stripped him of his captaincy for this summer’s Copa America tournament. Then, in early June, a woman filed a rape claim against him in Brazilian court, stemming from an encounter she had with the soccer star in Paris in May. (Neymar has denied the allegations.)

This week, PSG’s chairman publicly warned Neymar through an interview with France Football that he only wants players “willing to give everything for the shirt” and that “players will have to be more responsible than before.”

Since Forbes began tracking athletes three decades ago, this is the first time the top three highest earners in soccer also sit on top of the list of The World’s Highest-Paid Athletes.

One reason is that they are the three most popular athletes in the world on social media and produce high-quality, commercially driven posts for their sponsors that garner them big bucks.

Ronaldo is the most popular and engaging among them. His 370 million followers across Facebook, Instagram and Twitter transcend sports and make him one of the most followed people in the world. For perspective, he gained 48 million new followers in the past year, an amount that exceeds the total follower count of Manchester United and the French World Cup champion Paul Pogba (ranked No. 4 among the World’s Highest-Paid Soccer Players, with total earnings of $33 million).

During his last season with Real Madrid, Ronaldo generated $474 million in value for his sponsors on social media—an amazing return on their $47 million investment in him—and another $274 million for then-club sponsor Adidas.

This past season also ushered in the dawn of a new era. While his social media following has a long way to go to reach the stratosphere of the three highest-paid, PSG forward Kylian Mbappé (No. 7, $30.6 million in earnings) is generating both the quantity and the quality of buzz that position him to join their ranks, and even jump them.

The 20-year-old newcomer, the youngest on our list, had his global introduction at last year’s World Cup, scoring four goals in seven matches to help lead his French side to a championship victory. At 19, he was the second-youngest player to score a goal in the tournament, behind Brazilian soccer legend Pelé.

After winning the 2018 World Cup’s Best Young Player Award, Mbappé returned to his club and won Ligue 1’s 2019 Player of the Year Award as its 2018-19 top goal scorer. In between, he picked up endorsements with Hublot, which made him its first active player ambassador, and French baby food maker Good Gout. He hobnobbed with David Beckham. He graced the cover of Time. And he donated the $500,000 World Cup bonus he earned to a French hospital that organizes sporting events for disabled children.

His largest sponsor, Nike, also a French national team sponsor, is already thinking ahead to the 2026 World Cup, which will be cohosted by the United States. Mbappé will be just 27 then, and may very well be the only one on our current list still playing for his national team. The time to start exposing him to the market is now. 

Nike invited Mbappé out to its headquarters and escorted him on a mini-West Coast tour last week, complete with meetings with sporting legends LeBron James, Steve Nash and Brandi Chastain, and arranged for his Hollywood debut—throwing out the ceremonial first pitch at Dodger Stadium.  

“We see Kylian as a global superstar, and certainly the U.S. is a key component of the global marketplace,” said Heidi Burgett, senior director of global communications at Nike. “We certainly think Kylian has a very bright future with his joyful and fast brand of football, as well as his strong sense of purpose on and off the pitch.”

Modric, the reigning FIFA player of the year, missed our list this year. But the Croatian national team captain agreed to a new contract with Real Madrid in February that ties him to the Bernabeu until June 2021 and could land him a spot here next year. His salary reportedly matches that of his teammate Sergio Ramos, who ranks No. 19 on our list with total earnings of $21.9 million, of which $19.9 is in salary and bonus.

Nike is Modric’s largest sponsor. In 2018, he admitted in Spanish court to tax evasion and agreed to pay a fine in excess of $1.3 million. He used the same lawyer as former teammate Ronaldo.

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Beyoncé And Jay-Z’s Combined Billion-Dollar Fortune Makes Them One Of The Richest Self-Made Couples

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“Got that dinero on my mind,” Beyoncé and Jay-Z wrote on the third track of their surprise album Everything is Love, which came out last June. A year later, it’s clear that the couple wasn’t just taking poetic license: With Jay-Z’s newly minted status as a billionaire and Beyoncé’s place on Forbes’ richest self-made women list, the music moguls are one of America’s wealthiest couples.

It’s been a banner year for the married couple, whose combined net worth now totals an estimated $1.4 billion. Jay-Z, whose steadily growing portfolio of businesses includes liquor, art, real estate and stakes in companies like Uber, is the first hip-hop artist to become a billionaire.

Meanwhile Beyoncé , whose fortune increased to an estimated $400 million from $355 million last year thanks to continued touring and an album release, ranks No. 51 on Forbes 2019 list of America’s most successful self-made women (up two places from last year).

READ MORE | From Beyoncé Knowles-Carter to Kim Kardashian West, America’s Richest Self-Made Women Under 40

Their combined net worth of $1.4 billion makes the music moguls one of the 10 most successful husband-and-wife teams in the country, and certainly the most recognizable.  Unlike many other couples who founded businesses together, they both struck it rich with complementary but separate businesses. Beyoncé’s wealth comes mostly from earnings from touring, music sales and merchandise.

Her husband, on the other hand, amassed most of his wealth from his ownership of Armand de Brignac champagne, investments, his cognac partnership with Bacardi and his own music career, among other sources. Both Beyoncé and Jay-Z have stakes in music streaming service Tidal.

Other entrepreneurial husband-and-wife teams might not be as famous, but their businesses are well known. Do Won and Jin Sook Chang came from South Korea in 1981 in search of better opportunities. “At the time [people in] South Korea weren’t living as well,” Do Won told Forbes in 2016.

READ MORE | Artist, Icon, Billionaire: How Jay-Z Created His $1 Billion Fortune

He worked three jobs as a dishwasher, gas station attendant and office cleaner while she worked in a hair salon. They saved up and in 1984 opened a clothing store. Today they co-own and run Forever 21, a clothing empire with over 815 stores  and $4 billion in sales. Their combined net worth is $3 billion.

Another couple, the Cherngs, found success together through food. Andrew Cherng opened a Chinese restaurant with his father in 1973. His wife Peggy, who had a Ph.D. in electrical engineering and held positions at 3M and the U.S. Navy, gave it all up to help her husband expand the one restaurant into a Chinese fast-food chain. That chain, Panda Express, along with several other fast casual chains the couple owns stakes in, have brought the Cherngs’ combined net worth to $3.4 billion.

Sometimes the strength of a husband-wife partnership comes from their ability to support one another. This was the case for Eren Ozmen and her husband Fatih, the president and CEO team behind aerospace giant Sierra Nevada Corp. (SNC).

READ MORE | How Rihanna Created A $600 Million Fortune—And Became The World’s Richest Female Musician

Before they were a couple, Fatih encouraged Eren to pursue an M.B.A. (the couple originally met at Ankara University in Turkey before separately immigrating to the U.S.).

Once they were married, Eren put her business school training to good use by helping automate the financial reports at Fatih’s employer, a then-struggling SNC. Eventually, the couple decided to buy the company and took the business from the verge of bankruptcy to a top military contractor.

While building a vast fortune is rare for couples running businesses together, it has been a winning formula for some women: Nearly one fourth of those on Forbes’ 2019 self-made women list achieved their fortunes through businesses they cofounded with their husbands (though some now are widows or have since divorced).

Below are the 10 wealthiest self-made husband and wife teams in the nation:

1. Tom & Judy Love

Net worth: $5.9 Billion

Tom and Judy Love leased their first gas station in Watonga, Oklahoma, with a $5,000 loan from Tom’s parents. Now Love’s Travel Stops & Country Stores has more than 430 locations in 41 states.

LACMA 2018 Collectors Committee Gala
Stewart and Lynda Resnick cofounded The Wonderful Company, which owns Fiji Water and mandarin Halos. STEFANIE KEENAN/GETTY IMAGES FOR LACMA

2.  Lynda & Stewart Resnick

Net worth: $5.6 Billion

The couple are the force behind snack and drink conglomerate the Wonderful Co., known for Pom Wonderful pomegranate juice, Halos mandarin oranges and Fiji water. The couple is also known for philanthropy, giving millions of dollars to educational causes and earning the #29 spot on Forbes’ list of top givers.

Diane Von Furstenberg - Front Row - Spring 2016 New York Fashion Week
Barry Diller (left) and Diane von Furstenberg run their own businesses in separate industries.DIMITRIOS KAMBOURIS/GETTY IMAGES

3. Diane von Furstenberg & Barry Diller

Net worth: $4 billion

Diller is founder, senior executive and chairman at internet and media conglomerate IAC,. His wife Von Furstenberg is the designer and founder of the eponymous fashion label. Diller owns one third of DVF, while Von Furstenberg and her two children from a previous marriage own the rest.  

The Cherngs At Panda Express
Peggy and Andrew Cherng own and run $3.5 billion (sales) Chinese fast-food chain Panda Express. (Photo by Bob Riha, Jr./Getty Images)GETTY

4. Peggy & Andrew Cherng

Net Worth: $3.4

In addition to fast-food chain Panda Express, the Cherngs also own stakes in Urbane Cafe, Just Salad, Uncle Tetsu, Pieology and Ippudo.

5. Jin Sook & Do Won Chang

Net Worth: $3 billion

The Changs’ clothing retailing business is all in the family—the couple’s nieces work at the company as do their daughters, who launched Forever 21’s beauty brand Riley Rose.

PENCE SPACE SYMPOSIUM
U.S. Vice President Mike Pence (center) joins Sierra Nevada co-founders Eren and Fatih Ozmen at the 34th Space Symposium. MATHEW STAVER/© 2018 BLOOMBERG FINANCE LP

6. Eren & Fatih Ozmen

Net Worth: $2.8 billion

The Ozmens built their defense contractor Sierra Nevada Corp. through a series of some 20 acquisitions. Describing their strategy, Eren told Forbes  last year:  “Our guys go hunting, and they bring me this giant bear and say, ‘Now you do the skinning and clean it up.’ ”

7.Neerja Sethi & Bharat Desai

Net worth: $2.4 billion

Sethi and Desai cofounded IT consulting and outsourcing firm Syntel out of their Troy, Michigan, apartment in 1980. In October 2018, French IT company Atos SE bought Syntel for $3.4 billion.

8. Weili Dai & Sehat Sutardja

Net Worth: $2 billion

The couple headed semiconductor company Marvell Technology for 11 years until they were forced out as a result of an internal accounting investigation in 2016. Neither was found guilty of any fraudulent activity. The couple has diversified their investments into real estate and technology.

9. Kit Crawford & Gary Erickson

Net Worth: $1.8 billion

The couple behind Clif Bar met at Erickson’s bakery, where Crawford was working part-time. They each have a 40% stake in the company.

10. Beyoncé & Jay-Z

    Net Worth: $1.4 billion

The musicians have shown distinct business savvy, giving users of Tidal, the music streaming service the couple partially owns, exclusive access to their albums.

-Catherine Perloff; Forbes Staff

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Lionel Messi Claims Top Spot on Forbes’ 2019 List Of The World’s 100 Highest-Paid Athletes

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Forbes today released its annual ranking of the World’s 100 Highest-Paid athletes, who collectively earned $4 billion over the last 12 months, up 5% from last year’s earnings of $3.8 billion. 

Lionel Messi was named the world’s highest-paid athlete for the first time, up from second place last year, with $127 million in total earnings.

Messi unseats Floyd Mayweather, who held the crown last year, and was the leader four times in seven years. Behind Messi is longtime rival Cristiano Ronaldo (No. 2), who earned $109 million between his salary and endorsements. 

READ MORE | How Rihanna Created A $600 Million Fortune—And Became The World’s Richest Female Musician

Serena Williams (No. 63) returned to the ranking, after no women appeared in 2018. Cost of admission to the 2019 list is the highest ever at $25 million, up $2.1 million from the previous year. Endorsement income experienced an increase of 12.5% to $987 million this year.

“The global impact of soccer is clearly reflected in earnings in 2019, with the top three athletes on the list being Messi, Ronaldo, and Neymar,” said Kurt Badenhausen, senior editor, Forbes Media.

“But basketball players continue to dominate the top 100 overall with 35 athletes on the list earning a total of $1.29 billion, with 72% of that income coming from salaries rather than endorsement deals.”

READ MORE | Artist, Icon, Billionaire: How Jay-Z Created His $1 Billion Fortune

The list of elite athletes consists of players from ten different sports. NBA stars lead with 35 basketball players among the top 100, down from 40 in 2018, headed by LeBron James (No. 8 with $89 million).

Football was the next most-represented sport with 19 players, followed by baseball with 15, and soccer with 12.

There are 25 different countries represented on this year’s World’s Highest-Paid Athletes list, up from 22 in 2018. Americans dominate the action with 62 athletes thanks to the sky-high salaries in the major sports leagues.

The U.K. has five athletes, France and Spain have three, while Brazil, Canada, the Dominican Republic, Germany, Serbia and Venezuela all have two.

Methodology: 

Our earnings include prize money, salaries and bonuses earned between June 1, 2018 and June 1, 2019. Endorsement incomes are an estimate of sponsorships, appearance fees and licensing incomes for the same 12-month period based on conversations with dozens of industry insiders. We do not deduct for taxes or agents’ fees, and we don’t include investment income.

The World’s Top 10 Highest-Paid Athletes in 2019:

RankAthleteSportSalary/Winnings ($mil)Endorsements ($mil)Total Earnings ($mil)
1Lionel MessiSoccer9235127
2Cristiano RonaldoSoccer6544109
3NeymarSoccer7530105
4Canelo AlvarezBoxing92294
5Roger FedererTennis7.48693.4
6Russell WilsonFootball80.5989.5
7Aaron RodgersFootball80.3989.3
8LeBron JamesBasketball365389
9Stephen CurryBasketball37.84279.8
10Kevin DurantBasketball30.43565.4

-Forbes Corporate Communications; Forbes Staff

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