Google Cuts Price for Its Maps

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Google Cuts Price for Its Maps

Google Inc (NASDAQ:GOOG) recently announced that they will be cutting Google Map’s price by 88%.  The price cut comes in response to Apple Inc. (NASDAQ:AAPL) announced that they will be developing their own maps and no longer wanted to rely on Google for a map app.

In addition, various other sites that use Google Maps have been complaining that the price to use the maps is way too high.  To avoid losing a large customer base, Google cut the price in the hopes that customers will continue to use Google for their mapping needs rather than Apple.

Here is what Google Maps API manager, Thor Mitchell had to say about the latest move by the tech giant: “We’ve been listening carefully to feedback, and today we’re happy to announce that we’re lowering API usage fees and simplifying limits”.  “While the Maps API remains free for the vast majority of sites, some developers were worried about the potential costs. In response, we have lowered the online price from US $4 per 1,000 map loads to 50 cents per 1,000 map loads”

This is just the latest move in the Apple-Google war that continues to wage on.  Last week, Judge Richard Posner officially dismissed Apple’s case against Motorola, which is owned by Google.  This decision is seen as a blow to Apple as the stakes were high.  If Apple had won the lawsuit, the tech giant could have potentially gotten a leg up against Motorola and other Android-based mobile phone companies.  That being said, I think Apple could still end up having a leg up against Android as the company presses forward with its lawsuit campaign.

Google and Apple both face a reemerging Microsoft Corporation (NASDAQ:MSFT) as the company recent announced its new tablet.  In addition, while Microsoft has said that they are not focusing on a smartphone right now, expect that to change over the next year or so.  Microsoft is waiting to see how its partner, Nokia Corporation (ADR) (NYSE:NOK) weathers difficult conditions before they decide to press forward with the Windows phone with or without Nokia.

The bottom line here is that the technology community is heating up, competition wise.  Google is trying to position themselves favorably against Apple’s new maps.  In addition, a reemerging Microsoft could cause more headaches for Google and Apple.  However, before we can make these sort of assumptions we need to see how well Microsoft’s tablet does.  Regardless, both tech firms need to keep a watchful eye on Microsoft.

Disclosure: No positions

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