China: Apple Inc. announced, on the Worldwide Developer Conference (WWDC), that it would purchase surveying and mapping data directly from AutoNavi, Chinese digital mapping and auto navigation company. Now, iPhone and iPad users located in China will see the company’s logo whenever they open the mobile map application preinstalled within the gadgets.
At the release of the news, several analysts upgraded AutoNavi’s rating from “sell” to “hold” immediately. “The company has a P/E ratio of 15.5, below the average computer software & services industry P/E ratio of 18.2 and below the S&P 500 P/E ratio of 17.7.” Sam Li from Goldman Sachs even rated it “buy”.
The company is expected to benefit from its price competitiveness, in contrast with main rivals in China such as NavInfo Co. Ltd, which is the mapping data supplier to Nokia Corp. It is reported that the Finnish business empire paid more than four hundred million yuan to NavInfo last year.
Source: Morning Whistle