How competition helps consumers

mapby Norman B. Leventhal Map Center at the BPL

In the wake of Apple Maps, Google slashes prices on their maps API
[Via MacDailyNews]

“Google on Friday unveiled a new pricing scheme for its Google Maps application programming interface (API), dramatically cutting costs to developers for using its maps data,” Matt Lynley reports for The Business Insider.

“If you have an application that regularly makes a ton of calls for Google Maps data, you’re charged for every 1,000 calls the app makes,” Lynley reports. “That used to cost up to $4 per 1,000 calls, but now it’s going to cost around $0.50.”

Lynley reports, “Several competitors, like OpenStreetMap (employed in Apple’s iPhoto), have emerged to challenge Google’s dominance in Maps… Apple’s Maps app also definitely has Google a little concerned.”

Read more in the full article here.

MacDailyNews Take: Kudos to Tim Cook for enforcing Apple’s IP rights in a meaningful manner. Certain business moves can inflict stiffer, quicker penalties to IP theft than the legal systems of the world, it seems. Hopefully, Cook has something planned that’ll make slavish copier Samsung begin to rue the day, too.


With Maps as the default on iOS devices, Google must have made a ton. I don’t expect it was $4 per 1000 – Apple probably got a better deal – but it would have been a lot.

Now with Apple providing the mapping app, Google gets nothing. Before, app developers were a sideline for revenue and so could be charged a ton of money. Now, Google needs to replace a revenue stream.

It obviously hopes to make up in volume the revenue it will lose in lowering the price. We shall see.