Gould announces "Self Revolution" for free policy

Summary: View the latest market yesterday, Baidu suddenly announced mobile phone navigation app forever free, followed by gold also followed the announcement of the German navigation app Revolution to implement free policy. The two main navigation app providers move at the same time, driving the navigation app overnight into the free time.

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Yesterday, Baidu suddenly announced that mobile phone navigation app forever free, followed by gold also followed by the announcement of the "self-revolution" of the app "Free policy." The two main navigation app providers move at the same time, driving the navigation app overnight into the free time.

Relying on the tide of mobile internet, the free navigation software is the general trend. Baidu navigation related person said. Before this, the gold navigation has maintained a price of 50 yuan, only in the rare time to provide price promotions, similar software prices up to 108 yuan.

A High German insider revealed that, in fact, navigation is free is the established strategy, is ready to hold a press conference tomorrow announced, did not expect Baidu first announced the free policy, let the Gould unprepared.

The subversion of the navigational business model begins with Apple.

Last June, Apple abandoned its built-in Google maps in its new version of iOS, swapping its own map software. One of the most competitive features of Apple Maps is the ability to add real-time voice navigation.

Subsequently, Google's new version of the map application has built-in navigation capabilities. At home, Baidu, Gould also with international enterprises, in the map built-in navigation function, but this navigation function is limited to online use, and offline version continues to 50 yuan price sales.

"In fact, Baidu has always wanted to provide free offline navigation function, but limited to the upstream and downstream enterprises, and did not dare to provide." "A familiar Baidu map of the internal personnel revealed, Baidu map of the underlying data from NavInfo and other enterprises, upstream enterprises do not allow Baidu to use the free way to destroy the original charge of the market."

However, as the map entrance becomes more and more important, the map is regarded as the most important portal on the mobile Internet, the navigation of off-line map is the trend of free.

"The free navigation is a deliberate decision," he said. "The advent of the mobile Internet has made maps an important gateway and user-bound service," said Cheng Congwu, chairman and CEO of Gould. "Any business model that sells navigation software to consumers in this model hinders people's desire for mobile internet." ”

Cheng Congwu said that at present, the German hands more than 500 million dollars in cash, enough to support 3 years, 5 years or even 8 years, another Alibaba rich resources to do support, whether from the capital reserves or the establishment of business models have a free navigation conditions.

New business model to stand

But compared with challenger Baidu, "Eat by map" of the situation is very unfavorable. According to the second-quarter earnings released yesterday, both net revenue and net profit fell Year-on-year, with net revenues of $38.2 million trillion, compared with $40.2 million a year earlier, and a net profit of $3.8 million trillion, compared with $8.8 million a year earlier.

He is expected to lose a large sum of money after the free policy is implemented. The news affected the price of gold, which tumbled more than 11% per cent on the day.

By the end of the second quarter, the Gold Map app had 137 million users, more than 62 million active subscribers, and a more than 70 million-user navigation app. How to build a business model in a free market is the biggest problem for the German.

In Cheng Congwu's view, Gould must first find his place in the mobile Internet's big open ecosystem. "It is unrealistic to seek commercialization by a single enterprise, and the key is to gain access to users, and in the future we will be able to achieve our share and market opportunities when the entire industrial chain is commercialized." “

"We are in the key position to seize the market, although I do not dare to make a precise statement of commercial expectations, but in order to serve the local life of business opportunities, the most opportunities for maps." "Into from Wu said.

Free, the German navigation mobile phone application will mainly do two aspects of work: on the one hand, upgrade the underlying engine technology and map data, the implementation of traffic road conditions to participate in computing, near the real world's 3D experience, global navigation map, etc., on the other hand, through the "network fusion" function to achieve off-line navigation and online navigation smooth transition, Achieve seamless experience with different usage scenarios.

In June, he unveiled a technology called A-link, which is designed to display navigation information on a car screen with a mobile phone and a screen link, in part with a low-profile model with no navigation on the screen. However, at present only support the broad concept of S1, Lingpai, such as a few models.