Join the mobile Internet opportunity and risk coexist

In the past two years, he has held on to the banner of the mobile internet and tried to make a strategic transition. In June this year, Yang Yongji, vice president of software at the Apple Developer Conference, confirmed that Apple's own map service in iOS 6 would use the Chinese regional map data from the company, and that the September Internet Conference, the Cheng Congwu CEO, said that revenues from the mobile internet had exceeded 20%. On the face of it, Gould's mobile internet strategy has become an important part of the company's revenue. Recently, however, a succession of unforeseen circumstances has made the task of adjusting the strategy from opening up the new blue sea to a severe drop in the revenues from the fast-growing software, with more pressure and more time to test.

Apple iOS 6 map service disaster

It's not hard to see that both Gould and Apple have high hopes for Apple's new map service in iOS 6. In fact, the value of gold is not simply from Apple's income, more importantly, Apple for its eye effect and brand promotion. However, as September ushered in the global "fruit powder" large area of iOS 6 upgrade, users began to use the Apple Map service, but it is a disappointment. With Nokia's own Nokia maps and drive services, Apple's new map service, which is Andong, is amusing, compared with Google's maps and navigation services.

Although many of the errors and imperfections in Apple's maps come from Apple, TomTom, and Gould, he hopes that Apple's consistently high standards, through the popularity and popularity of Apple, have frustrated the efforts of the gold map and navigation benchmarks and demonstrations. From this perspective, the disaster of the IOS 6 map service is not only Apple, but also Gould's.

Baidu, Sogou and other free software impact

A few years ago, the hottest navigation applications in Apple's App store were navigating the Kay navigation and navigation, which was the confidence of Gould in the mobile-Internet strategy, but the situation is quite different today. First, the Apple iphone 4S model has been able to use the free Apple Maps and navigation services, and secondly, based on the rapid development of domestic 3G network, and mobile phone users preferences, online navigation services can basically meet the needs of use. And such as "Sogou navigation", "Baidu Navigation" and other excellent online navigation applications are free. The price of RMB 50 and the need to store about 2GB map data in the mobile phone has been faced with a number of alternative plans, downloads are significantly declining, even the gold himself has launched a mini map to provide free online navigation services.

Baidu, Tencent, Alibaba, 360 and other internet giants will map, navigation, lbs as the mobile Internet market in the Battle of the frontline battlefield. These enterprises not only have a strong capital, and the domestic top research and development capabilities, but also sitting on a large and have a viscosity of the user base, in its search, social, e-commerce, security and other areas of advantage and location information in-depth integration, resulting in "chemical role." In the face of their fierce offensive on the mobile internet front, he is a bit outnumbered.

Risk of traditional vehicle navigation business

He has the courage to invest money in the mobile internet market because of its traditional car navigation business as a solid backing. In the past two years, Gaodlai from this area of rapid growth in revenue, 2011 of this part of the total revenue accounted for more than 60%, the total amount is close to RMB 800 million yuan. However, while increasing the investment in mobile internet, he has stalled on the development of the core resources of navigation maps. It is understood that the new generation of navigation map specifications of the development of NDS is seriously behind the competition, so that the original in their own camp, BMW's important customers to choose from the world's leading NavInfo (002405, shares bar) to obtain map data and compile services. The shift will have a serious impact on the sales of Gould's revenue this year.

His main revenue in vehicle navigation is in Audi and BMW, enjoying the gains from the sales of luxury cars in the last two years. According to the FIA statistics, Audi in the first half of 2012 sales of more than 140,000 navigation models in the Chinese market, BMW sales of nearly 130,000 units, the year-on-year growth of 89% and 53% respectively. But with the new 5 series, the new 7 series, which has been on sale this year, and the new 3 series, which will be listed in the next two years, to start using the four-dimensional map of the new NDS navigation map, the sales revenue of Gould would be seriously declined. More frightening is that, in addition to BMW, Daimler, Volkswagen (including Audi) are also the NDS Association of the initiator and strong support. If Gould can not quickly in the field of NDS map format to make a breakthrough in the customer's further loss, resulting in a serious gap between income and expenditure, then the result will be unthinkable.

Summary：

Gould's decision on the development of the mobile internet market should be accurate, and in recent years the rapid growth of the mobile internet market in China has made everyone impulsive. However, as a company that does not have the gene of Internet industry, it is difficult to compete with many formidable competitors. Analysts are worried about further investment in the mobile internet sector after a sharp drop in revenue from car navigation. By contrast, rivals such as Baidu and Tencent, regardless of output, may be unable to compete with them. In the development of navigation map technology gradually lag behind the pace of competitors, the mobile internet market may also be difficult to become the blue ocean of Gould. Between the decline in income and the contradiction between further expansion of investment, the ability of his mobile internet strategy to help it make a magnificent turn is still to be tested.