Reporters want to think that the emerging "map war" between Google (GOOG) and Apple (AAPL) is a battle only one side can win.
But that's not really how these things work. Both sides have already won, and their coming competition will stimulate better service for everyone.
Lance Whitney of CNET explained it well although the headline on his column emphasized only the competition.
Google Maps and Search on the iOS platform have given Google $1.6 billion in ad revenue this year, 40% of its mobile total. Sounds like a lot, but it's still just 2% of Google's total revenue. Make something else the default and Google Maps will still live in the iPhone, through the App Store.
Now, after buying C3 Technologies and investing heavily on development, Apple is ready to roll out its own 3D maps as the default for iOS 6. It could be announced as early as next week's World Wide Developer Conference, which is Apple's favorite venue for product announcements.
Of course Google isn't sitting still. It's contracted with a fleet of small planes to buzz the nation's landmarks, and outfitted hikers with its Street View cameras so they can deliver the woods. Before you protest that the woods are outside of cell range, it's adding an offline feature that lets you download the files you need before leaving home.
Fact is the smartphone market has grown so rapidly, from 300 million units in 2010 to an estimated 1.8 billion this year, that both companies are winners. Google Android has more than half the market, while Apple has full control over its hefty chunk. There is enough volume in the Apple chunk that it makes financial sense for Apple to invest in building better map applications. But the volume it loses as a result will scarcely be missed.
And, of course, the biggest winners are customers. That's what capitalism is all about.
