Handset and platform makers such as Nokia and Google have been expanding in-house map data platforms. Apple is reportedly considering buying Tom Tom, a Dutch navigation product provider, to strengthen its map data services. The entry barriers for map data platform is quite high, hence firms that obtain such strength can easily achieve product differentiation.
Handset makers noted that currently, only Nokia, Tom Tom, and Google have complete global map data resources. In particular, to expand resources, Nokia and Tom Tom acquired firms such as Navteq and Tele Atlas. Currently, Google Maps is embedded in its Android platform, while Windows Phone 8 (WP8) adopts Nokia's map data. Apple, on the other hand, has been using Tom Tom's map data. This means almost all handset and platform makers cooperate with the three firms that have map data services.
Recently, Nokia introduced Here, a free map service, on the iOS platform while Google has introduced Google Maps 40 countries and supporting up to 29 languages.
Navigation product makers stated that Tom Tom has been facing a shrinking PND market, hence the firm has been focusing on the software market. Furthermore, Tom Tom's market value is less than EUR1 billion (US$1.3 billion) but it has profitable map data and navigation-related technologies, hence there is a possibility for Apple to acquire the firm to compete with Google and Nokia in the map data segment, according to navigation product makers.
Despite the fact that Nokia has been seeing shrinking market share for its smartphones, the acquisition of Navteq has allowed the firm to be competitive in the map data market. In addition, Nokia's WP8 smartphones have its exclusive City Lens function helping the firm to achieve product differentiation from other WP8 smartphones.