While the news that Apple is going to be putting together its own mapping software to compete with Google Maps was good news for TomTom (News - Alert), it was pretty bad news for other navigation software companies around the globe. One such company that seems to be reeling from the recent announcement is Telenav, which saw their stock price drop sharply as the markets opened on Tuesday morning.
Telenav saw its stock plunge as much as seven percent at the beginning of the morning, thanks in large part to the announcement that Apple was going to go with its own navigation program. Telenav has built itself a nice group of customers by selling an application that can be downloaded on Sprint and AT&T (News - Alert). Telenav actually has a pretty good application and the continued dominance in the market by Android has kept the company afloat, but if Apple is able to lure even more customers away from Android (News - Alert) using these new turn-by-turn direction applications, then the company will be in trouble.
Telenav’s best turn-by-turn programs are all of the pay variety, and if Apple comes up with a turn-by-turn navigation app that works (Google Maps on the iPhone (News - Alert) is not turn-by-turn) than Telenav is going to lose a huge percentage of its market. That is most likely the reason why the company’s stock took such a hit the day after Apple’s move was announced. Telenav is reported by some industry analysts to be getting as much as 70 percent of its revenue from users at Sprint (News - Alert) and AT&T. A large portion of that market is iPhone users who want in-car navigation on their phones.
Telenav is just one such company that has seem at least some revenue coming from offering up turn-by-turn applications that are downloadable on the Apple iPhone. It would appear that while iOS 6 will be geared towards taking on Google and Android, there will be some companies that get caught in the crossfire.
Edited by Brooke Neuman