Apple and AT&T buy apps firms, deepening rift with Google

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Apple and AT&T buy apps firms, deepening rift with Google

By CAROLINE GABRIEL

Published: 1 October, 2009

Apple and AT&T are increasingly ranged together in the developing industry battle over the future face of the mobile web. Now both firms have made interesting acquisitions that could boost their bid to keep control of the web experience firmly in the traditional hands of the carrier and handset maker - as Google pushes the open browser-based model where the software company has the upper hand.

Apple has acquired PlaceBase, a mapping company that could help the iPhone maker challenge Google Maps and Latitude. Now that the old alliance between Apple and Google is clearly over, with the latter's CEO Eric Schmidt departing Apple's board, the gloves are off, and the iPhone maker looks set to challenge its former friend in as many key areas of web apps as possible. Already, the war is raging over Voice, and now Apple could move into one of the most hotly contested internet markets - especially in the mobile world, where Google Maps and Nokia Navteq are seeking to harness the revenue potential of location awareness and ubiquitous GPS.

PlaceBase produces a maps API called Pushpin and a mapping service comparable to Google's. The secretive acquisition was first unearthed by Computerworld in July, and although it still not officially confirmed, most sources say it has happened, and are talking of a 'hyperlocal iPhone'. Coincidentally or not, shortly after the purchase reportedly occurred, Google released an iPhone version of its Latitude mobile location 'friend finder' app, which became the subject of yet another dispute with Apple. Unlike Google Voice, it was not kept out of the App Store, but Apple insisted it was classed as a web-based app, to be used only via the Safari browser, not a native phone app as on BlackBerry, Symbian, Android and WinMo. The official reason given was to avoid confusion with Google Maps.

Now it seems likely that Apple will announce a similar app of its own via PlaceBase, and then could go on to expand into the full mapping market. PlaceBase adds layers of public and private data (such as home sales or consumer purchases) to existing maps with an easy-to-use API. Its technology could allow Apple to reduce its reliance on Google Maps and replace that functionality in the iPhone and iPod Touch.

Over at AT&T, the operator is steadily building its own web services platform and user experience, as also seen at Verizon Wireless, Vodafone 360 and elsewhere. AT&T still has some key decisions to reveal about operating system support and other matters, but its acquisition of start-up Plusmo shows its seriousness about creating a differentiated software platform that will include its own unique applications and widgets. In particular, Plusmo will help it build widgets and apps that span cellphones, PCs and TV, a capability that fixed/mobile and quad play operators believe will help them to preserve differentiation and customer loyalty in future (Orange is particularly aggressive in this respect, even planning a three-screen app store soon).

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