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.