The Real Reason Apple Turned Away From Google Maps

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

In recent years, tech giants Apple (Nasdaq: AAPL  ) and Google (Nasdaq: GOOG  ) have had something of a falling out, you might say. Actually, one might even go as far as to call it a "thermonuclear war" if one was so inclined, despite some remaining partnerships between the two.

Of course, much of the tension can be embodied by Apple's decision to ditch Google Maps in iOS 6 in favor of its own in-house, heavily criticized service. The Verge reports that Apple's map contract with Google was still good for another year before it was up for renewal, so there wasn't really any time pressure on the decision for the Mac maker to become a map maker.

So why jump the gun when Apple Maps clearly wasn't ready for prime time?

On the turning away
According to All Things D, turning away from Google Maps was centered on one particular point of contention: turn-by-turn driving directions. The search giant had built this functionality directly into Android's maps years ago, which has been viewed as a distinct competitive advantage.

Up until now, iOS users were relegated to an overview list of directions that they needed to manually push a button to progress through, an obvious distraction while driving. Meanwhile, Android users could sit back, relax, and let their phone tell them when and where to turn.

Apple was reportedly very adamant that it wanted this feature and was still using Google's backend data for its first-party maps app. With mapping becoming a mainstay use case for smartphones, Apple pressured Big G into giving up the driving-direction data, which the search giant wasn't all too keen on, since it had spent years and lots of dollars building up its direction database.

The two tried to hammer out acceptable terms but continued to disagree over certain things like branding or the inclusion of Google Latitude, a friend location service that competes with Apple's Find My Friends app.

A momentary lapse of reason
It's at that point that things fell apart and Apple decided to launch the mapping service it had been building over the years, utilizing at least three different acquisitions of map-related technology companies. Obviously looking in hindsight, perhaps this was a rash decision considering the sheer amount of backlash that's been unleashed in Cupertino's general direction.

Although it's not as if Google benefited from being dropped, even though it's surely enjoying Apple's misfortune to an extent. After all, the net result was that it did suddenly lose 100 million mobile-device users in a matter of days, since Apple announced that many devices had been updated to iOS 6. Sure, iOS 6 users can still use Google Maps via a browser, but that's an extra step for a poor experience; most will stick with Apple's default.

Third-party data partners such as Yelp (Nasdaq: YELP  ) and TomTom (NASDAQOTH: TMOAF.PK), among others, have certainly benefited by seeing their data directly integrated. Yelp had already been providing reviews through Apple's Siri assistant and now has expanded that role for business listings and reviews within its maps.

Learning to fly
Apple thought its mapping service was more fully baked than it turned out to be. I'm reminded of the famous iPhone 4 "Antennagate" debacle, a situation that was hard to avoid without extensive real-world testing outside labs (not including the engineer who lost a prototype at a bar). Or Siri, which is already the subject of a false-advertising class action lawsuit because of its underwhelming performance. Releasing Maps into the wild into the hands of millions of users all over the world was bound to uncover hidden corners of the globe that Apple's engineers overlooked.

Much like any of these past fiascos, the high-profile missteps are unlikely to have any measurable impact on sales. Tim Cook summed up the loyalty of Apple consumers this year at D10, recalling when he made the decision to join the company:

Apple was the only technology company that I knew of, including the one I was currently at, that when a customer got mad at a company, they'd continue to buy. If people got mad at Compaq, they'd buy Dell. If you were mad at Dell, you'd buy IBM. But an Apple customer was a unique breed; there's this emotion that you just don't see in technology in general.

Source: All Things D.

So while Apple takes off the training wheels and learns the hard way how to operate a mapping service, people will still keep buying iPhones.

The introduction of the iPhone 5 is an event Apple investors have been looking forward to for months. The stakes are high and the opportunity is huge, so to help investors understand this epic Apple event, we've just released an exclusive update dedicated to the iPhone 5 launch. By picking up a copy of our premium research report on Apple, you'll learn everything you need to know about the launch, and receive ongoing guidance as key news hits. Claim your copy today by clicking here now.

Fool contributor Evan Niu owns shares of Apple, but he holds no other position in any company mentioned. Check out his holdings and a short bio. The Motley Fool owns shares of Google, IBM, and Apple. Motley Fool newsletter services have recommended buying shares of Apple and Google, creating a synthetic long position in IBM, and creating a bull call spread position in Apple. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days. The Motley Fool has a disclosure policy.

Read/Post Comments (5) | Recommend This Article (7)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On September 29, 2012, at 11:37 AM, TheFreeLance wrote:

    Nice Pink Floyd sub-meme.

  • Report this Comment On September 29, 2012, at 11:57 AM, sprngl wrote:

    Since we're on the Pink Floyd sub-meme, you forgot an important factor in the whole Apple/Google maps fiasco: Money. It's painfully clear that the biggest reason Apple switched to its own mapping app was to bring more in-house control over more of what iOS does so it isn't reliant on other providers (read:Google). More control equals more money.

    "Money, it's a crime

    Share it fairly

    But don't take a slice of my pie"

  • Report this Comment On September 29, 2012, at 5:14 PM, bbrriilliiaanntt wrote:

    Very nice springi! Spot on, nice segway, kudos!

  • Report this Comment On September 29, 2012, at 11:24 PM, sharpx2 wrote:

    Hey guess what. I have used just about every form of GPS both on the iPhone and as stand-alone hardware. I have just spent several days running around in a city of which I had no driving knowledge. Apple's Maps did at least as good a job as other services, and in most cases did better. For one thing, turn by turn with voice was right on time - - none of this issuing instructions right after you blow by the turn. Another thing: there are errors in their database, but that is true of both every software- and hardware-based GPS out there. Integration with Siri is sweet (get me directions to . . .) And Apple has an incredible track record when it comes to improving their products and dealing with their shortcomings. All in all, a very functional, usable product at present with a great future. I simply recommend that you do what I have been doing for years: look at the directions on Google Maps before taking off in your car. That way you are prepared for the gaps between reality and your GPS program, no matter who has provided it.

  • Report this Comment On September 30, 2012, at 5:26 AM, daveandrae wrote:

    The main two reasons why i recently chose the 4s over the 5 were price (107 bucks), and google maps, which came standard.

    I could not be happier.

    I never thought I'd see the day when I could ride my motorcycle, listen to a 1st class, noise reductive music system and have a world class, turn by turn navigation system, all in-ear, for less than one hundred and seventy bucks, all at the same time.

    Will iphones eventually come with a better, standard, maps system?

    Of course.

    For less than 100 bucks?

    Not yet :-)

Add your comment.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2036868, ~/Articles/ArticleHandler.aspx, 10/26/2016 5:48:49 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 8 hours ago Sponsored by:
DOW 18,169.27 -53.76 -0.30%
S&P 500 2,143.16 -8.17 -0.38%
NASD 5,283.40 -26.43 -0.50%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/25/2016 4:00 PM
AAPL $118.25 Up +0.60 +0.51%
Apple CAPS Rating: ****
GOOGL $828.55 Down -7.19 -0.86%
Alphabet (A shares… CAPS Rating: *****