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Apple’s rumored Maps app won’t materially affect Google

updated 09:29 am EDT, Thu June 7, 2012

iOS users will still account for 2 percent of Google's revenue

Apple's rumored new Maps app that could be set to displace Google's default Maps app on iOS 6 is not expected to materially affect Google, according to Piper Jaffray's Gene Munster. According to Munster, even if Apple replaces Google Maps as the default mapping application on iOS devices, Google will simply add it to the App Store for users to download separately. According to Munster's calculations, iOS users already contribute about 2 percent of Google's total revenue and the looming maps battle won't change this.

In crunching the numbers, Munster forecasts that Google will earn around $4.5 billion in revenue from mobile users. Of this, $4 billion is expected to be derived from search-based advertising with iOS users expected to contribute as much as 40 percent of this. This translates to $1.6 billion in revenue generated from iOS users clicking on Google ads generating as much as 2 percent of Google's total revenue. Removing Google Maps as the default maps app won't hurt Google's bottom line, if that is indeed Apple's intention.

The maps war is symbolic of the growing acrimony between the two companies, which once had a very close relationship. When the iPhone was launched, Google Maps was one of its marquee applications with Google's Eric Schmidt and former Apple Board member on stage with Steve Jobs to launch the app. However, it was only several months later that Google, under Eric Schmidt, launched Android with an interface that has drawn repeated comparisons with Apple's iOS and sparked a patent war between Apple and Google's Android partners that shows no signs of abating. [via Fortune]



By Electronista Staff
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  1. hayesk

    Professional Poster

    Joined: Sep 1999

    +17

    So what?

    Nobody claimed they would materially affect Google. Apple wants more control over their map data, so they're using different maps that give them that control.

    One thing is for certain though - Google is concerned about what Apple is doing with their maps. There's no other reason to pre-announce Google's new maps all of a sudden unless they expect to try to take eyes away from Apple. I think it had the opposite effect.

  1. ParisAppleGuy

    Fresh-Faced Recruit

    Joined: Jun 2012

    -9

    Google will simply add it to the App Store

    Right.. that is, if Apple actually allows them to do so. After Apple posts their own maps application, they could simply say that Google is "duplicating Apple functionality" and deny a Google Maps app. Then again, they would anger their customers. But that didn't stop their vendetta against Flash.

  1. rbodgers

    Fresh-Faced Recruit

    Joined: Feb 2010

    +13

    Google Maps in the App Store

    I'm sure they will. And I'm sure many people will download it. But the vast majority will use the default maps app. More importantly, the vast majority of third party apps that use embedded mapping functionality will use Apple's, too.

    I have no idea how this will impact Google. I'm sure they'll find a way to survive. But losing all that traffic can't be good.

  1. qazwart

    Fresh-Faced Recruit

    Joined: Apr 2001

    +8

    What about the apps?

    Remember many of those apps use the API to call up maps via the map app. It's not merely about a separate map app, it's also about the apps that use that mapping data. Google can make a Map app, and you can down load it. However, Siri and all the apps in the app store will use the Apple map.

    Besides, what makes Piper Jaffray that people will go out of their way to download the Google Map app? Maybe the built in Apple Map app might be just as good. It would be silly to download a second Map app if it doesn't do anything more than the default Map app does.

  1. airmanchairman

    Fresh-Faced Recruit

    Joined: Dec 2011

    0

    Too little, too late, I suspect.

    Most iOS users will likely just use whatever default Map app is available, which will be triggered from any smart links and tapped addresses (like Safari, Mail, Calendar and third party apps) anyway.

    So long as the Apple default maps "scale the enterprise", that's the beginning of the end of Google's iOS gig, and some pretty new resource-hogging 3D feature isn't going to change the outcome much. Besides, if they make it a paid app, they'll be the ones paying Apple a 30% cut, a complete reversal of fortunes (and revenues).

    Lord knows Apple has been waiting a long time to replace this treacherous frenemy's Trojan offerings, save a lot of outgoings and bring one more product feature under their vertically integrated control.

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