yesterday, Baidu suddenly announced mobile phone navigation App permanent free, followed by High German also announced the High German navigation App self revolution to implement free policy. The two main navigation App providers simultaneously action, driving navigation App night into the free time.
relying on the tide of mobile Internet, navigation software is the trend of free." Baidu navigation relevant responsible person said. Prior to this, the High German navigation has maintained a price of 50 yuan, only in rare times to provide price promotions, the highest price of similar software reached $108.
is a high German insiders, in fact is the High German navigation free strategy has long been identified, is preparing for tomorrow held a news conference to announce, did not expect Baidu first announced a free policy, let High German be taken by surprise.
navigation business model subversion began apple
in June last year, apple abandoned the built-in iOS map in the new version of Google, with its own map software. Among them, the most competitive feature of Apple maps is to join the real-time voice navigation function.
subsequently, Google’s new version of the map built-in navigation function. In China, Baidu, Gao De is also in line with international enterprises, built in the map navigation functions, but the navigation function only online, and offline sales continue to price of 50 yuan.
, in fact, Baidu has always wanted to provide offline navigation free of charge, but limited to the upper and lower limits of the enterprise, but not provide." A person familiar with the Baidu map of the internal personnel revealed that Baidu map of the underlying data sources to NavInfo and other enterprises, the upstream companies are not allowed to destroy the Baidu market have been charged with a free way.
, however, with the entrance of the map is more important, the map will be regarded as the most important mobile Internet portal, offline map navigation free is the trend.
"High German navigation free, we have thought after the decision." Chairman and CEO of High German from Wuhan in the earnings conference call, said: "the advent of the mobile Internet has become an important entrance map and user inseparable services, in this mode of any sales navigation software to consumers business models have hindered the people yearning for mobile internet."
from Wu said that the current High German holding $more than 500 million in cash, enough to support 3 years 5 years or even 8 years, another Alibaba rich resources do support, in terms of capital reserve establishment or business model with free navigation conditions.
new business model to be established
, however, compared with the challenger Baidu, " rely on the map to eat " High German situation is very unfavorable. According to yesterday released second quarter earnings, high Dejing revenue and net profit both fell, including net revenues of $38 million 200 thousand, and $40 million 200 thousand for the same period last year; net profit.
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