Need a quick example of the power of a strong brand?
In the August 31 issue of Fortune there's a great article comparing RIM's BlackBerry and the iPhone. While both companies are moving a tremendous amount of units, it's interesting to look at margins... According to a Sanford Bernstein analyst, Apple currently has an operating margin of 40% on its iPhone while RIM's average per handset is 20.7%.
Apple's margins are almost double. That's the power of brand. Indeed RIM/BlackBerry has a premium and respected brand (e.g. 20.7%), but Apple has built an amazing brand. And while there are many benefits to having an amazing brand probably the most important thing will always be the ability to generate more margin.