Apple (AAPL) to Tell Google (GOOG) Maps: 'You Aren't Here'
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We're starting to feel like the CEO of Google (Nasdaq: GOOG) should be called Pizarro Page. Or maybe Apple's (Nasdaq: AAPL) CEO is actually named Magellan Cook.
According to reports out Tuesday, neither Google nor Apple want users to get lost again. At least, not on their watch. Or with each others apps.
There is a big push from both Apple and Google for an improved mapping system. Currently, Google and Apple have helped each other, with Google's Map app becoming a key part of the iPhone experience, and Apple returning the favor by sending more mobile web traffic through Google's search engines.
But, like an Oreo dunked in milk, friendships have a way of falling apart. The WSJ noted Tuesday morning Apple is planning to oust Google Maps as the default maps engine on upcoming iPads and iPhones.
Sources told the WSJ the plan has been in the making for years. The Cupertino, CA-based media and tech giant has since been encouraging developers to include the Apple app in their next offerings.
The bet is big; one research firm cited by the WSJ says map or location-based searches account for about 25 percent of the roughly $2.5 billion spend on mobile ads in 2012. That's multiples above 2010 levels indicating map-based queries amounting to just 10 percent of mobile ad revs.
Google Maps is said to be used by more than 90 percent of iPhone users. This means Google is likely to lose out on some ad revs and search data, which it uses to pitch retailers on buying more ad space. Over the long term, the shift means Google will likely generate less map-related revenue.
On Wednesday Google will host a Maps event, likely to unveil a new 3-D feature on the company's service. The event comes a few days before Apple's WWDC on June 11th. Apple is expected to talk about its next mapping plans at the developer event.
Both stocks are indicated for a lower open Tuesday.
According to reports out Tuesday, neither Google nor Apple want users to get lost again. At least, not on their watch. Or with each others apps.
There is a big push from both Apple and Google for an improved mapping system. Currently, Google and Apple have helped each other, with Google's Map app becoming a key part of the iPhone experience, and Apple returning the favor by sending more mobile web traffic through Google's search engines.
But, like an Oreo dunked in milk, friendships have a way of falling apart. The WSJ noted Tuesday morning Apple is planning to oust Google Maps as the default maps engine on upcoming iPads and iPhones.
Sources told the WSJ the plan has been in the making for years. The Cupertino, CA-based media and tech giant has since been encouraging developers to include the Apple app in their next offerings.
The bet is big; one research firm cited by the WSJ says map or location-based searches account for about 25 percent of the roughly $2.5 billion spend on mobile ads in 2012. That's multiples above 2010 levels indicating map-based queries amounting to just 10 percent of mobile ad revs.
Google Maps is said to be used by more than 90 percent of iPhone users. This means Google is likely to lose out on some ad revs and search data, which it uses to pitch retailers on buying more ad space. Over the long term, the shift means Google will likely generate less map-related revenue.
On Wednesday Google will host a Maps event, likely to unveil a new 3-D feature on the company's service. The event comes a few days before Apple's WWDC on June 11th. Apple is expected to talk about its next mapping plans at the developer event.
Both stocks are indicated for a lower open Tuesday.
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