Apple Maps: A Failure Explained by Network Effects
Apple’s unparalleled success in recent years has resulted in them being the most valuable company in history, with a market-cap of $620 billion dollars. The momentum began with the introduction of the iPod, and was propelled even further by their iPhone and iPad product lines, two products that arguably revolutionized modern mobile computing. Apple’s exceptional focus on product detail and design, and customer satisfaction has resulted in many people setting the bar for Apple’s success very high, and when companies are as large as Apple is, they are only one small mistake away from major public scrutiny. Which brings us to Apple’s latest cause of public hysteria, the release of iOS 6 for the iPhone and iPad, which featured their own version of a Maps application, instead of the Maps application which relied on Google Maps technology. The version of the Maps app that had shipped with the iPhone since its inception in 2007 had been removed from the operating system because of ever increasing competition between Google’s Android mobile computing platform and Apple’s iOS platform. The Maps app was a core feature of iOS and relying completely on Google for this service put them at a very large disadvantage competitively.
Unfortunately for Apple, mapping technology is incredibly complex. The release of their own Maps application was described by many as a “disaster” and brought about widespread, public criticism. Major flaws existed in the details of maps in certain areas, turn-by-turn navigation gave inaccurate directions to some, and the overall experience was lackluster compared to Google Maps. The debacle became so large that it prompted the CEO of Apple, Tim Cook, to an issue an apology on behalf of the company, where he admitted Apple fell short of their standards and even offered alternative solutions, including the use of Google Maps through the mobile Safari web browser. Some have even speculated that this fiasco over Apple’s Map solution resulted in the departure of Apples Senior Vice President of iOS, Scott Forstall.
What made Apple miss the target so greatly in an area where Google shines? Network effects and the competition surrounding them can help explain the answer to this question. Certain technologies, like mapping and social networks, rely on data collected by hundreds of millions of people over a long period of time. Experts agree that Google’s particular success in its Map technology is because it has collected information from many individuals across the world to continually perfect their maps and the complete user experience. Google Maps has such tremendous value because the more individuals that use their solution, the better and more accurate it becomes. Network effects has led Google to dominate the mapping market, and can explain why not only backlash resulted from the forced switch for iOS users, but also why Apple Maps was a clearly inferior service. Google Maps had surpassed its own tipping point long ago, which made Apple’s service much less attractive to users forced to adopt it. Google Maps is a better, more accurate service and has a much larger audience.
The future of Apple Maps is uncertain as its user base still does not compare to Google’s, but many feel like the success of the iPhone will help with the necessary information needed to improve the service, along with expanding its user base. Tim Cook has also pledged that Apple will do all that is necessary to make their service more competitive. Dominance isn’t promised forever for Google as technology rapidly changes, but for now, Google can rest comfortably on top of the throne of mapping services.
Sources –
http://www.guardian.co.uk/technology/blog/2012/sep/24/apple-iphone-5-maps-google
http://www.huffingtonpost.com/2012/10/30/scott-forstall-resigns-apple-maps_n_2043927.html
http://www.forbes.com/sites/benzingainsights/2012/08/21/apple-now-most-valuable-company-in-history/
-kaskadewell