Sunday, March 3, 2013

Fortune: Apple Remains The World's Most Admired Company For Sixth Year

Every year, Fortune Magazine compiles a list of the world’s most admired companies, based on their financial performance, products and brand impact among consumers. For the sixth year in a row, Apple managed to maintain its lead as the “World’s Most Admired Company” of 2013, ahead of such well-known companies as Google, FedEx and even Walt Disney and Washington-based Starbucks.

One of the main factors used in the poll is a survey done to many business executives regarding which companies they admire the most. Despite many fears of the company’s slow demise after the departure of its co-founder and CEO Steve Jobs, seen by some as almost inevitable, the company’s sales figures and consumer appeal remain very strong. As pointed out on Fortune’s website, the company’s refusal to compete on the prices of its products, while keeping a loyal consumer base that bring a constant stream of sales at the same time, has earned its title as the most profitable company in the world over the past year.

Over the last few years, expectations from many commentators on what Apple is able to and should deliver have increased substantially, often leading to disappointments at the time of announcements. Indeed, as pointed out by Adam Lashinsky, Senior Editor at Large at Fortune, many are expecting Apple to reinvent the wheel every time it releases a new product:

“The world expects miracles from Apple. So much so that the absence of one on a regular schedule spells doom to some.”

Similarly to what happened in recent years, this year’s Fortune “Most Admired Companies” list features many technology companies as well as long-time American household brands, including FedEx and Walt Disney, both of which did not make it to the top spot. Other technology companies were Google, Amazon and IBM. Google has achieved the distinction of being considered as one of the most desirable companies to work at.

It is left to be known whether the company will hold on to its title for years to come, given slowing growth in recent quarters and many fears of lack of innovation. However, the world’s most profitable company will for sure remain and a landmark for both technology and business enthusiasts to come.

Fortune is out with their annual list of the world’s most admired companies. For the sixth year in a row, Apple took the top spot. More surprisingly, the top 13 companies this year were based in the U.S.

The top five following Apple are Google, Amazon, Coca-Cola, and Starbucks. The first non-American company on the list is BMW, which took the No. 14 spot. Samsung Electrics is No. 35.

Of Apple, Fortune states:

Apple has had a rough time lately with its stock price in a free fall and the widely publicized failure of its Maps feature. However, it remains a financial juggernaut, posting $13 billion in net income last quarter, making it the most profitable company in the world during that period. The company has its fanatical customer base, and it still refuses to compete on price, making the iconic iPhone and iPad products that are still widely seen as prestige devices.

To come up with their annual list, Fortune and the Hay Group start with a list of 1,400 companies each with revenue of $10 billion or more. The rankings are based on information obtained from 3,800 respondents who are asked to select the 10 companies that they admire the most.

The last company to rank No. 1 not named Apple was General Electric in 2007. That year, Apple ranked No. 7.