Apple drops to number 79 on Forbes list of most innovative companies

By , Aug 16, 2013

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A report surfaced last week claiming that Apple’s Board of Directors are worried about the company’s ability to innovate, and they’ve spoken with Tim Cook about it. The concern follows a near year-long stretch without any major product announcements.

And apparently, the folks over at Forbes agree with them, because Apple has dropped way down on their infamous list of ‘World’s Most Innovative Companies.’ The iPad-maker, which once sat as high as number 5, now comes in at the lowly number 79 spot…

ComputerWorld points to the list, published by Forbes this week, which uses a complex algorithm to rank companies by something called an “innovation premium”—the difference between market cap and net present value of cash flows from existing businesses.

“Think of [the innovation premium] as the investor expectations built into the stock price,” explained Bruce Upbin, managing editor of Forbes, in an interview today. “Apple’s ranking dropped because of what happened to the stock [price] in the last year. Its ranking is a proxy of what investors think of the future of the company.”

So Forbes obviously has a different opinion of what constitutes as ‘innovation.’ Google, for example has also fallen quite a bit from its No. 7 spot in 2011, to No. 47. And I mean, this is the same company that is making computerized glasses and Internet balloons.

“It’s not necessarily true that Google’s innovation has slowed down,” said Upbin, “but maybe investors think that driver-less cars won’t pay off like search has.”

But that certainly doesn’t mean Apple gets graded on a curve. It’s going to have to really impress investors this fall and convince them that they have the ability to produce hit products and achieve the big growth if it wants to quiet the innovation concerns.

For what it’s worth, the companies who topped Forbes’ most ‘innovative’ list include Salesforce.com, ARM, Baidu, and Amazon, who came in at number 7.

Where do you think Apple stands on the list of most innovative companies in the world?

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  • Sokrates

    This is just a wrong way to calculate innovation. You can’t “calculate” innovation anyway. It just proves that Apple isn’t a heavily growing company anymore. Neither is Google.
    Most growing technology companies have a high market cap, as the expectations are obivoulsy very high. A good example would be LinkedIn. Heavily overvalued. P/E ratio of 653. thats insane!!! Apple has a P/E of 9. But that doesn’t conclude that linkedin is innovative.

    ps: look at the list, especially top 5. that’s just nonsense.

    • Gorgonphone

      i can see failed design and boring product through

      • Sokrates

        I can’t.

      • Gorgonphone

        Nore can the other apple sheep

      • Tardroid

        but your mom…

      • Gorgonphone

        Lol

    • felixtaf

      Agree… They have defined the Innovation premium points like this,
      “Innovation Premium is a measure of how much investors have bid up the stock price of a company above the value of its existing business based on expectations of future innovative results (new products, services and markets)”.

      So, its not about INNOVATION, Its about Innovation premium based on stock market and expectations! Crap and misleading… I see Starbucks there. I wonder whats their new INNOVATIVE coffee!

      Its misleading, even if they have named Apple or Google no:1..

      • Sokrates

        very true.

  • Piyush

    I think so they didn’t like ios 7 icons and gave rank 79 ;)

    • Gorgonphone

      IOS 7 is and ugly mess

  • Willie

    Apple used to be creative when Steve Jobs was around. Steve dared to dream and he always wanted to achieve what he wanted. I just hope that Tim Cook would learn that aspect of him.

    • Sokrates

      have you seen how they calculated “innovation”? this has nothing to do with Apple, nor Tim Cook, nor Steve.

    • Gorgonphone

      true and cook is just a bean counter

  • Nirvana

    Maybe they may reclaim the top 10 title after the 5S event if no that would be people don’t like the icons or other OS imitation

    • Sokrates

      You seem to have no clue how Forbes calculated innovation.

    • Gorgonphone

      nope cause IOS7 is ugly and 5S will be boring..

  • Dan

    Google not innovating… Give me a break

    • Sokrates

      Who’s then?

      • Dan

        I meant that imo, Google IS innovating

      • Gorgonphone

        lol nope google is copying and flooding the market with BS

      • Dan

        your post is irrelevant… FACT

      • Gorgonphone

        Your tears or short circuiting ur computer

      • Kurt

        You just got trolled by Joe Josen. Congrats bro!

      • Dan

        ahahaha! I was thinking the same thing.

      • Gorgonphone

        He trolled himself

      • felixtaf

        And he s back again!

      • BearManPig

        And you are flooding this page with BS

      • Gorgonphone

        And your blood streem is flooded with estrogen thats why you cry over truth that android sucks llol

    • Gorgonphone

      google is not the leader so no one cares or expects much from them but from apple we expect greatness

      • Joseph

        Google is the leader, considering that there is a larger amount of Android devices, more apps in their app store, and then there’s the fact that Apple doesn’t have a search engine of their own! There’s also the fact that Google is attempting to make self-driving cars, distribute WiFi to everyone via balloons, and have wearable computers as glasses, and you’re telling me no one expects much from them?

        You are a truly demented fellow if you think Android is Google’s only playing field.

  • n0ahcruz3

    It started. This is what im saying people, media will think apple now lacks innovation. 1 gb ram 8 mp cam. No thank u,

    • Gorgonphone

      its true.. S models kill the brand.,… FACT

      • Joseph

        He was referring to the iPhone 5, which has 1GB of RAM and an 8MP camera.

  • Gorgonphone

    yup its cook and ives faults… but apple sheep wont understand this

  • VATekMan

    I laughed when I say that Starbucks was in the top 20…. based on that, I do not know how much credibility to hold on this ranking…

  • Carlos Franklin

    I wonder what iSheeps would say if the title was “Samsung drops to #79″…lol

    • Gorgonphone

      same thing i always say …samsung suuuucks..

      • Carlos Franklin

        lol….something a iSheep would say!!!
        Brain washed by the herd master.

      • Gorgonphone

        More like a fact that a realist would accept … Samsung realy does suck

      • Umut Bilgiç

        Well, Apple fans could say the exact same thing to you as well. Weather a Fandroid or iSheep ( I never like these sterotypes) no one is brainwashed, they just think one is good, one is bad for them. You can not proove that you are not a Fandroid not brainwashed.

  • Yawn

    I see gorgonphone has taken over the comments with his usual trolling. Between him and Christian with his trolling articles we have a perfect nightmare.

    • Gorgonphone

      I see your emotions have taken over your mind lol so now we have a perfect girly man posting his feelings instead of information about how ugly ios7 is

      • Carlos Franklin

        Being an fandroid and an ios fan, I think the new iOS 7 is sleek and elegant. Apple will do fine with its new iOS!

      • Gorgonphone

        Yeah apple is alowed to get away with any old crap

      • Joseph

        It’s nice how you attempt to verbally insult someone just because you’re being annoying and we let you know that.

        Sticks and stones may break my bones, but words will never hurt me.

  • n0ahcruz3

    Atleast google is making driverless cars. What is apple been doing putting “i” on everything. I hope apple will surprise us in the near future. Because the mac pro that they’ve showed us that looks like a trash bin just wont cut it IMO.

    • Gorgonphone

      yeah but those cars will run android and suck…soooooooo boooo

      • Joseph

        …And you say you’re not an iSheep. You don’t provide any real examples of why Android sucks except for your opinion, which sounds like the opinion of an Apple fanboy. Provide real reasons for me, so I can prove you wrong once again.

    • Umut Bilgiç

      Umm. That design is actually pretty clever and innovative.. You can use it as a trash ofc, most of the people will use it as a powerful mac pro.

  • Apanizo2

    Bullcrap

  • Zaidan Umar
  • Joseph

    Regardless as to whether you believe the other positions on this chart are false, the truth is that Apple really does need to start innovating. Simple graphic changes won’t work anymore, nor will adding features that it’s competitors had for a long time and not adding much else. We want something new and exciting.