1. Apple
1
- Brand value: $247 billion
Apple (AAPL, Tech30) has surpassed Google since 2014 to become the most valuable brand in the world.
The Apple brand has increased in value by 67% over the past year as the company has continued to promote its products globally, according to an annual ranking by BrandZ.
Apple has performed particularly well in China, where it has been taking market share from competitors such as Samsung, Xiaomi and Huawei.
Plus, the Apple Watch -- the company's first new consumer product in five years -- has created a ton of buzz around the world.
2. Google
2
- Brand value: $174 billion
"Google has done very well; it's just that Apple has done better," said Elspeth Cheung, global valuation director at BrandZ.
The company still dominates the online search market in the Western world and is continually ranked as one of the best employers.
However, Google's brand has also been challenged as the public has raised concerns about the company's privacy policies and tax affairs.
3. Microsoft
3
- Brand value: $116 billion
Microsoft (MSFT, Tech30) has long used its Windows software as a cash cow, but things are changing now that new CEO Satya Nadella has taken over, said Cheung.
The company is offering its new Windows 10 as a free upgrade for current Windows 7 and 8.1 users.
Cheung said this move marks a turning point for Microsoft as the company makes its products more easily accessible.
The Microsoft brand is now the third most valuable brand in the world, up from fourth place in 2014.
4. IBM
4
- Brand value: $94 billion
The value of IBM's (IBM, Tech30) brand has declined by 13% over the past year, pushing it down one rank to fourth place.
Cheung said the tech firm's brand has foundered as IBM tries to compete in the cloud computing space against the likes of Amazon (AMZN, Tech30) and Microsoft (MSFT,Tech30).
Lower profitability has also dragged down the overall valuation, she said. In the most recent quarter, IBM reported results that missed Wall Street's expectations.
"We are disappointed in our performance," CEO Ginni Rometty said when the results came out.
5. Visa
5
- Brand value: $92 billion
Visa (V) jumped two spots to become the fifth most valuable brand in the world.
The surge in the credit card company's brand has been "very impressive" as worldwide revenue increased at a healthy pace, said Cheung.
However, she warns that Visa must be aware of encroaching competition, specifically from tech-driven firms like PayPal, which has experienced rapid growth over the past year.
6. AT&T
6
- Brand value: $89 billion
AT&T's brand value climbed by 15% to reach $89 billion, leading to its sixth place ranking. Verizon is close behind in seventh place.
Cheung said AT&T is trying to become more of a lifestyle brand for consumers, providing entertainment services in addition to typical telecom offerings.
However, the firm's shares have underperformed the overall market, and the company was kicked out of the Dow Jones industrial average earlier this year. Shares are down about 2% over the past 12 months.
7. Verizon
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- Brand value: $86 billion
Verizon (VZ, Tech30) has plans to dominate a future in which all content -- from TV channels to publications -- are streamed over the Internet.
That's why the firm recently announced a $4.4 billion deal to buy AOL (AOL, Tech30). The goal is to create a major new player in the digital media business by combining one of the biggest mobile network providers with a leading content producer.
Cheung said she's optimistic about Verizon's future following a stellar year where the brand value surged by 36%.
8. Coca-Cola
8
- Brand value: $84 billion
The Coca-Cola (KO) brand -- which includes all versions of Coca-Cola Light, Diet and Zero -- has been a member of the Top 10 list since BrandZ began its ranking 10 years ago.
However, the value of Coke's brand increased only 4% last year, lagging other top performers. Therefore, it fell in the rankings by two spots.
Cheung said the company simply hasn't seen a lot of growth this year in developed markets and emerging markets, a trend that has has held back the brand.
9. McDonald's
9
- Brand value: $81 billion
The McDonald's (MCD) brand has suffered over the past year with its valuation declining by 5% to $81 billion.
The brand now ranks in ninth place, falling from fifth in 2014.
The fast food chain has seen profits crumble and sales shrink as many consumers opt to eat at competitors like Chipotle (CMG), the burrito chain that McDonald's sold off almost a decade ago.
But McDonald's isn't going down without a fight. It is rejigging its menu and rebranding itself, moving away from its traditional red and yellow color palette in favor of green, said Cheung.
10. Marlboro
10
- Brand value: $80 billion
It may surprise you that the Marlboro brand has been on the Top 10 list since BrandZ began its ranking 10 years ago.
In fact, the Marlboro brand has increased in value by 19% over the past year.
"Even though ... there [are] limitations on what they can do with their marketing campaigns, they are still a very strong brand," said Cheung, noting that advertising bans in countries around the world have kept competitors from challenging Marlboro's dominance.
Marlboro is the largest-selling cigarette brand in the world.
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