Cheng Congwu: The free navigation is not a copycat competitor

"TechWeb Report" August 29 news, gold in Beijing today held a conference to explain the application of the free navigation mobile phone strategy. Cheng Congwu, chairman and CEO of Gould, said the free is a thoughtful, measured decision, but not a competitor. Yesterday afternoon, the gold announced that the price of 50 yuan of the German navigation mobile applications for permanent free, and a few hours ago, Baidu took the lead to announce free, and then decided to refund paid users. Cheng Congwu said, Free is the Internet, the general trend of free navigation application is considered, the situation of the decision, since to take the road of mobile Internet, it must be leather their own lives, but will not follow the competitors. Right now, the internet giant to map and location services, "The Giants have coveted this industry, a great squeeze on the gold," Cheng from Wu, said, "for the market competition, Gould also has a clear understanding of the navigation free has been explained that Gould has full confidence to meet mobile internet." "In fact, the gold has also been on the pace of free, the gold map as a free application has now accumulated 150 million users." In the past, the profit model of navigation, including toll download and through custom to mobile phone manufacturers charge, up to now installed and download volume reached 70 million. Cheng Congwu said the navigation used to be an inward-looking product for high-end mobile phone users and car owners, and that after free, it would open the conversation directly to the end user. "After the free navigation, the investment in this field will be further increased, the user's service commitment will not change, more concerned about the user's pain point." "As a listed company, he needs financial metrics. After free, how will Gould's profit model be built? The profit model of the future mobile application is the same problem that the mobile internet faces, but in the big open system, each important role is looking for own position, the profit pattern definition needs the industry to discuss together, has not seen an internet company to earn the money through the application and the service, including the micro-letter, Weibo and mobile E-commerce. (Chuck)