Mapping a new strategy in the battle of tech titans
Apple Inc (NASDAQ: AAPL) unveiled a plethora of new features
for its product lines in the keynote delivered on the first day of the Apple
Worldwide Developers Conference at the Moscone West Exhibition Hall in San
Francisco. At the event, open exclusively to Apple developers at a modest
$1,599 per ticket, the Cupertino company divulged iOS6, an updated software
available to iPhone, iPad and iPod touch users later this year that Apple has
promised will continue ‘… the rapid pace of innovation that is helping Apple reinvent
the phone and create the iPad category, delivering the best mobile experience
available on any device’. Planned enhancements to the latest operating system
include a deeper integration with Facebook, shared photo streaming through
Apple’s iCloud service and a more powerful Siri application that takes
‘hands-free’ multi-tasking to a high level. However, one of the more
interesting features of iOS 6 revealed to developers was Apple’s new
proprietary mapping feature that would include interactive 3-D views,
navigation, integration with companies like Yelp (NYSE: YELP) and Open Table
(NASDAQ: OPEN) for local entertainment and food destinations, turn by turn
directions and even real-time traffic information. Although hardly a revelation
that they’ve been developing their own mapping system, Monday’s announcement
makes it clear that Apple has put Google in its sites and is ready to go
toe-to-toe with the ubiquitous search engine.
Apple Inc (NASDAQ:
AAPL) unveiled a plethora of new features for its product lines in the keynote
delivered on the first day of the Apple Worldwide Developers Conference
Apple also announced a global agreement with Dutch company
TomTom NV (EURONEXT: TOM2), a producer of navigation systems for autos as well
as software for smart phones, for providing maps and other services.
Effectively, Apple has slammed the door on Google, which has provided mapping
services to previous iterations of Apple’s mobile operating system. The news
helped boost shares of TomTom on the Amsterdam exchange by over 13%, and saw
Google shares close down sharply – a trend that has plagued Google for over a
week. Map technology is an important aspect to mobile devices and a lucrative
one as well. It’s estimated that advertising related to map applications on mobile
devices are a whopping 25% of the $2.5 billion that made up the entire mobile
advertising market in 2012. The move is believed to cause collateral damage as
well, with companies like Garmin (NASDAQ: GRMN), a leader in technologies
utilizing the Global Positioning Systems, expects to suffer a loss of business,
with declining share prices of 9% after Monday’s news already reflecting that
belief.
A lot can be taken away from the obvious snub of longtime
collaborator Google. Once again, Apple is attempting to keep important aspects
of its devices close to the vest while using effectively using third party
manufacturers and strategic partnerships to enhance its existing product line.
Cutting out Google makes sense strategically and financially, as Apple would rather
see more of that advertising dollar diverted into their coffers and eliminate
its dependence on what has become, due to the Android operating system, a
bitter rival.
Apple also
announced a global agreement with Dutch company TomTom NV (EURONEXT: TOM2), a
producer of navigation systems for autos as well as software for smart phones
Apple’s move isn’t only causing headaches for players in map
technology like Google, Garmin and Harman International Industries (NASDAQ:
HAR). One of the biggest announcements from the WWDC involved the upgraded Siri
technology and the Eyes Free feature, essentially having Siri on a car’s
steering wheel with responses coming through your car’s speakers. While Apple
managed to sign a great number of car companies to provide the service, Ford
(NYSE: F) balked at having Apple’s device in its vehicles. Speculation is that
Ford is unhappy with the proprietariness of Apple’s device. Ford already offers
similar services, and would cede those services and their revenues if it agreed
to let he iOS driven feature into its cars.
Although not the opening salvo in the war of mobile devices,
Apple is making it clear to its erstwhile opponent that it is willing to do
whatever it takes to keep iDevices at the top of the market place, even if that
means creeping into Google’s core competencies.
