I’ve written before about Apple’s marketing strategy (which boils down to selling an overpriced, slightly-above-average product, only to belittle it as a shoddy and sub-par product when they release the marginally better version a year later). It seems their business model has led to them pass Google and become the world’s most valuable brand.

There’s something to be said for increasing prices of products. To take a bit from the article:

“Apple is breaking the rules in terms of its pricing model,” [Peter Walshe, global brands director of Millward Brown] told Reuters by telephone. “It’s doing what luxury brands do, where the higher price the brand is, the more it seems to underpin and reinforce the desire.”

Simply put, if this new gadget costs me $1000, not only does that prove how awesome and valuable the product is, but it puts me in a class above all those “poories” who don’t have an extra G note sitting around to waste on something frivolous. The quality of the product and its ability to serve a specific function in my life are secondary; the most important thing is that I’ve got something no one else has and it cost me a fortune.

This isn’t a new idea; companies have been slapping exorbitant price tags on products forever – calling them “name brand” or “designer” or some other nonsense. Those $500 jeans aren’t made out of special fabric; and while they likely fit you better, what you’re really paying for is the brand recognition that comes from having that label on your denim.

Which is exactly why Apple is now the world’s most valuable brand. The Apple brand is not only ubiquitous, but is presented as a designer brand. We’re not talking about Wal-mart, whose brand is focused on low prices and saving people money. We’re talking about Apple, whose brand is focused on elitism and status.

All of this is why branding is an important part of any business. This isn’t to say that product quality or customer service or other aspects of business aren’t important; it’s only to say that branding can have a huge impact on the value of your business.