Apple DUMPS Google for TomTom
Apple (NASDAQ:AAPL) certainly has the Midas touch, turning TomTom N.V. to gold after recruiting it to provide mapping technology for its iOS mobile operating system. Though financial terms of the agreement haven’t been disclosed, TomTom shares, which trade in Amsterdam, have soared over 12 percent this morning since the announcement.
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The move highlights Apple’s determination to move away from Google (NASDAQ:GOOG), which provided mapping technology to previous iterations of iOS. On Monday, at its Worldwide Developers Conference, Apple first introduced its new maps program, which will be available with iOS 6 when it debuts this fall.
Upping the ante, Apple’s Maps app enables turn-by-turn navigation with spoken directions, real-time traffic information, and suggests alternative time-saving routes. It is also connected to local search information, including Yelp (NYSE:YELP) ratings, reviews, and deals.
In a news release detailing the sixth version of its iOS, Apple said that panning, tilting, and zooming on the new maps will be “incredibly fluid.” The company also announced Flyover, which will provide “photo-realistic 3-D views.”
Apple’s move was wholly expected, as the iPad and iPhone maker had earlier bought at least three mapping-technology firms. Investors expressed concern Monday, after Apple presented its own maps feature, as to how the dissolution of its partnership with Google would affect the latter. Already trading lower ahead of WWDC, Google shares plunged further as Apple demonstrated its new technology at the conference in San Francisco.
Google isn’t the only tech company getting slammed by Apple’s new technology — shares of Garmin (NASDAQ:GRMN) slipped several percentage points as some of the features of Apple’s new map app became known. Garmin will likely fall even lower in trading today as TomTom, its major competitor in GPS technology, rises on the Apple deal.
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