Ta the future development of mobile Internet

After Google launched its Android operating system, Apple, the mobile giant, sees Google as a direct competitor. From IOS6, Apple has completely eliminated the internal Google factor action, by mobile phone map, search engine, to YouTube. And vice President Yang Yongji on June 12, 2012 High-profile attendance at the WWDC2012 Apple IOS6 Conference, to the media to confirm the cooperation between Apple and Gould. As a result, the domestic media have commented "as a big winner in providing the Chinese navigation map data for Apple." However, the fact seems to be not so simple, through the analysis can be seen: not only is it difficult to get rich profits through this transaction, and will make himself into the mobile Internet strategic transformation TA, to the operation of huge potential risks, and even affect the future development.

Is Apple really a good customer?

Public opinion has noted the Apple giant's move to buy the company, but the days of Apple's suppliers have not seemed to be easy. In January this year, the parent company behind Foxconn, one of Apple's biggest foundry companies, said that "Hon Hai's operating margin fell from 5.9% in 2006 to 1.5%". And more media and analysis agencies are also reporting "Apple's profit growth to reduce the cost of supplier profits."

Professor Lang has made public the point that Apple creates 360 of billions of dollars from an iphone only by mastering the design and sales links, while Chinese companies are assembling the iphone in an intensive workforce that only creates $6.54 trillion. US hardware analyst Isuppli tells us that the hardware cost of a single iphone is only $187.51, while Apple's iphone retail price for North America is 649 dollars. We may not be able to see Apple's contract with Gould, but it is conceivable that Apple's squeeze on the Chinese map supplier will not be lighter than that of Foxconn. You can question this judgment until the next high-German annual report is published.

Apple may not be a good customer when the excess profits created by Apple's global supply chain are quietly lying on Apple's cash account.

Is Apple really a client?

While a low unit price may affect Gould's earnings, there is still a rebuttal: the growing sales of China's market will still be a significant achievement for Gould. If the vision is to be longer than income, then the impact of Apple's contract on the company's business strategy will not be offset by sales revenue.

He has been declaring that he will move to the mobile internet industry for nearly two years, and has also made remarkable achievements in carrying out relevant business. The 2011 report showed that gold's revenue from mobile and Internet location Services was 27.4 million U.S. dollars, accounting for 21.82% of total revenue. Compared with the 2010 fiscal year, the business sector revenue growth of 142.2%. In this, "the German navigation" sales growth is not. According to Apple's policy, the price of 50 yuan in the "German navigation" each additional purchase, the gold can obtain about 30 yuan in income.

"The German navigation" once in Apple App Store navigation app ranked first, sales impressive. But once Apple has launched its own free maps and navigation services, iphone users will suddenly find that they no longer need to pay to buy navigation software. The shift could be a devastating blow to the "Gold Navigator", which is likely to clear its revenues.

There is a case to be referred to: Apple App Store social apps ranked number one WhatsApp, through the mobile data network to provide text, voice, pictures and other chat content transmission. And after Apple's iOS5 integrated imessage provides approximate functionality, WhatsApp has been severely impacted, and has been forced to join the "limit-free" army in order to maintain its user capacity, and sales have fallen sharply.

Won the Apple order, but lost the original income. From this point of view, Apple is not a high German customers, but a direct competitor of high Germany. But the gold direct with the competitor business, in exchange for although is the surface is bright, but actually may be to own harm.

The trend of the strategy and opponents of the mobile internet

He joined the mobile internet business, the main income in addition to the "German navigation", but also to the Internet, mobile Internet developers to provide navigation map Services API interface. In addition, he hopes to establish a reasonable mobile advertising business model in the future to increase revenue. A big reason for his attempt to get into the blue Sea of mobile Internet is to get rid of the plight of the excessive concentration of revenue in BMW and Audi's two-car factories. But the "gold navigation" was hit by Apple; Map Service API business is facing Google, Baidu, map, etc will be a strong competitor, and mobile advertising revenue is far from the time, people can not help but worry about the German mobile Internet transformation of the war deeply ta.

On the other hand, the NavInfo (002405, shares), who are also the main competitors, are constantly deepening the development of map products and trying to diversify their business. Its introduction of pedestrian navigation by the Baidu map and other applications, called "Fun Driving" telematics business is to help four-dimensional map of the new smooth dug gold customers: BMW; another four-dimensional map of the new also actively into the voice, Adas and other fields, in order to meet the growing high-end customer demand.

In addition, the four-dimensional map of the new conventional means of acquisition is also playing a role. The century Qualcomm, which was acquired years ago, has become the absolute leader of the domestic real-time transportation information industry, and the Dutch Mapscape acquired in 2011 is also a global monopolist of map compiling services. A line of industry insiders revealed that the new layout of the four-dimensional map in fact pointed to the annual sales of the 85.9 million U.S. dollars, accounting for more than 68% of the car navigation business. In the loss of BMW's new orders, the company's car revenue may face nearly half of the loss, which is undoubtedly more to its turn to the mobile internet business ta worse.

Gao Tak does not need to worry too much about capital markets

The car navigation business, which accounts for more than 68% of the revenue, is being attacked by rivals, while entering the mobile internet business is likely to be a serious strategic mistake. Despite the tough times, he doesn't seem to be overly worried about the loss of capital markets. The recent High German stock price is relatively stable, maintaining between 12 and 13 dollars. But the value of the enterprise is not entirely reflected in the stock price, and the strategic transformation of the gold did not help him open up the bottleneck of future development.