TomTom Secures Global Map Data Deal with Apple
TomTom will supply map and related data for Apple’s new mapping service, as Apple moves away from Google Maps in its iOS platform.
TomTom has signed a global agreement to provide maps and related information for Apple’s newly announced mapping service, the Dutch navigation company confirmed on Tuesday. The deal positions TomTom as a key supplier for Apple as the US technology giant prepares to replace Google Maps in its iOS operating system.
Apple revealed at its Worldwide Developers Conference that the next version of iOS will feature a new Maps app designed in-house, with turn-by-turn navigation, 3D views and real-time traffic information. The company said the service will also provide local search features, integrating Yelp ratings and reviews. Apple’s decision to develop its own mapping platform marks a shift away from Google, whose mapping data had powered iPhones and iPads since their launch.
TomTom confirmed the supply agreement in a brief statement but did not disclose financial terms or the scope of data provided. The company described it as a global deal for maps and related information. Analysts have pointed to the scale of Apple’s installed base as a major boost for TomTom, which has seen declining sales in its core portable navigation device business.
Impact for TomTom and navigation sector
TomTom’s share price jumped more than 10 percent after the announcement. The company has struggled in recent years as smartphones have eroded the standalone satnav market. In the first quarter of 2012, TomTom reported a €1.5 million loss, with revenue falling 12 percent to €233 million. The Apple agreement gives TomTom access to millions of iOS users worldwide, potentially offsetting the decline in hardware sales.
Apple’s new mapping push brings it into direct competition with Google’s mapping service, which remains the dominant platform on smartphones. Apple said its new app will offer live traffic updates and suggest alternative routes, features that have been core strengths for Google Maps. The inclusion of TomTom’s data is expected to help Apple match those capabilities, though the reliability of the new service will be closely watched by users and industry observers.
Apple’s mapping strategy and industry response
The mapping agreement is part of Apple’s broader move to reduce reliance on Google’s services. By building its own mapping platform, Apple gains greater control over the user experience and can integrate additional features tailored to its ecosystem. The company has also partnered with other data providers for local business information and reviews. For TomTom, the deal provides a high-profile endorsement of its mapping technology, which could influence other licensing opportunities in the connected car and mobile sectors.
The long-term impact for TomTom will depend on how Apple’s new mapping service performs against established competitors. Early reactions from investors have been positive, but the company will need to demonstrate that its data can support a mapping service at Apple’s scale. For further analysis on the reliability of Apple Maps compared to Google Maps, seeApple Maps Error Rate Three Times Higher Than Google Maps in UK and US.
