Apple's (AAPL) brand value dropped 8% over the past year, putting it just below Google in the BrandZ ranking.
The company has sold millions of iPhones and other products, but perceptions towards the brand have been shifting.
"They need to create a stronger emotional connection with consumers," said Elspeth Cheung, global BrandZ valuation director at the brand consultancy firm, Millward Brown. "They need to work on their relevance to consumers."
Apple was smart to invest in other business areas, particularly Uber's big Chinese rival, Didi Chuxing, said Cheung.
The company plowed a whopping $1 billion into Didi last month as the taxi-hailing company engages in a fierce battle for market share with Uber.