Apple might torpedo another market with its subtle but versatile application Maps – Part 2

Therefore, unlike a navigation or GPS application that the user has to pay to use, Maps will bring all those features without losing a buck from the wallet.

The reason why the future of the likes of TomTom or OpenStreetMaps is in the dark is because Apple products are in the reach of millions if not billions. On the other hand, GPS devices and services are not in the reach of every person. Only those who are heavy travellers need these devices for easy navigations. This is the very reason why Maps might map out these Nav service providers.

Apple sells millions of iOS devices every quarter and most of them, if not all, are drivers. Even if a small portion of drivers need a GPS device, Apple has it for them. The company has everything from maps with street details to turn-by-turn navigation covered in a single device. iOS is now not only your mobile communications device but also a GPS monitor and navigation guide as well.

All the users need is a dock to keep the device feasibly visible on the dash board and a charging cable to keep it on during long drives. This is way too cheap than purchasing a whole set of equipment form TomTom or OpenStreetMaps that comes at a premium price.

Apple is already running hot streak in profitability and Nav companies have very narrow margin of revenues in the GPS market. Though TomTom will generate huge profits licensing their map services to Apple, these earning will never offset the loss they will incur in depressed hardware sales.

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Posted by Usman Khalid on Jun 15 2012. Filed under Sci-Tech. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.