5:18 AM - Google Shares Falls $1.85 Billion Due to Apple Maps
Yesterday at 10:00 at Moscone West in San Francisco, CA, Apple
had announced new MacBook lineup, Mountain Lion OS X features, and
iOS 6 at WWDC 2012. In terms of iOS 6, the next mobile operating
system has more than 200 features includes new 3D Maps app, Siri,
Facebook integration, shared Photo Streams, etc. Related article:
iOS 6
review at WWDC 2012.
And since Apple announced to release the its own new map app
for replacing Google Maps, Google shares fell nearly 1%, according
to
Seeking
Alpha. In accordance with the Google market value of $ 185.33
billion, the new Apple Maps makes Google map service market losses
of about $1.85 billion.
The competition between Apple and Google these two giants is
increasingly strong. Before the WWDC, there are many news reported
Apple will launch its own map service to replace Google Maps. Last
week, Google first released an upgraded version of map services,
adding that will expand the "Google Map" and "Google Earth"
service.
Even so, Apple abandoned Google Maps yesterday and caused
Google shares tumbled. The same day, Google closed at $ 568.50 /
share fell by 2.06 percent than the previous day.
According to reports, the latest release of Apple's mapping
application based on vector graphics, like Google released the
latest maps, satellite 3D real view and the 3D modeling view. Of
which, Live Maps 3D support gesture scaling and rotation, bird's
eye view of the panoramic city views from different angles, can
also be amplified to a single building of a 360-degree rotation
browse.
"This is a global map service, all the cartographic is
completed by our engineers." said, Apple's mobile software
department head. And reports say
Apple
uses TomTom and OpenStreetMap to build its 3D map.
Prior to this, Apple has been using Google Maps. It is
understood that from 2007, Apple released a revolutionary smart
phone iPhone from Google Maps for iPhone location services, map
navigation, search business, to determine the location, these are
the iPhone to the success of important elements. Accordingly, the
sharp increase in sales of the iPhone to the Google Maps bring huge
traffic and user base.
At that time, a personal friend of former Apple CEO Steve
Jobs and former Google CEO Eric Schmidt is also very good. Schmidt
is still 2006 to 2009 served as the Apple board. Soon after, two
giants of Silicon Valley's turn for the mobile business. Google
released the Android operating system, Jobs was furious, and Google
as "a shameless plagiarist. The relationship between the companies
because the competition is rapidly cooling, the apple was blocked
Google Voice application (after release) for the intervention of
regulatory authorities, and Google has refused to add the iPhone
version of Google Maps Street View service because the talks broke
down.
In August 2009, Schmidt quit Apple's board of directors.
Steve Jobs is very clear that Google and Apple compete in the
mobile arena, Schmidt is no longer suitable as the Apple board.
Since then, Apple will start the layout of the map service.
In 2009, Apple's acquisition of mapping company Placebase; 2010,
Apple continue to acquire Poly9 C3 Technologies, two location
provider.
However, some analysts believe that the flow of competing
interests is the Apple painstakingly preparing for the real cause
of the map service. Google Maps, a total of 10 million users, lost
over 200 million iPhone users (total sales) is not just the decline
of the number of users, the more important influence is bid
farewell to a huge network traffic.
According to market research firm estimates of Opus Research,
mobile advertising expenditure of approximately $ 2.5 billion in
2012, a map or location information of mobile advertising spending
will account for about 25% of the data in 2010 was 10%.
Map is one of the mobile Internet, the main traffic entrance,
basic services, from a few giant companies in the industry point of
view, Microsoft Windows Phone implanted in the home of Bing maps,
Google implanted on Android, Google Maps, only Apple. also use the
map of the competitors Apple naturally aware of the importance of
this point. communications industry observers Ligang accept
"International Finance" reporters said.
In fact, the in WWCS the General Assembly prior to the
convening, Apple will abandon the message of Google Maps has been
flying. To this end, Google has also specifically grab before Apple
launched on June 7, 3D map, but also a number of upgrades to Google
Maps.
Apple's map service or shocked investors. Apple announced the
moment to close the map service will be launched, Google shares
fell nearly 1 percent. Google is currently the market value of $
185.33 billion, Apple launched the Google map service market
capitalization loss of about $ 1.85 billion.
However, investment bank Piper Jaffray analyst Gene Munster
believes that this does not will impact Google's revenues. "In
2012, the iOS bring only 2% of the total Google revenue for Google,
approximately $ 4.5 billion, of which 500 million dollars comes
from the mobile display advertising business, another $ 4 billion
is from search advertising. iOS platform is far from the largest
source of revenue in Google search business, so even if Apple
doesn't use Google Maps, which will not affect Google's earnings
data."
Other experts claim that, Google and Apple break cooperation
on the map business is a sign of the two sides will be fully
competitive. "In the future, the two sides will have more intense
competition in the billing platform and software platform."
Related reading:
Google
Maps vs Apple Maps.