Rationale For Apple’s Coherent Navigation Acquisition Extends Beyond Just Maps

+2.57%
Upside
174
Market
178
Trefis
AAPL: Apple logo
AAPL
Apple

Apple (NASDAQ:AAPL) confirmed that it had purchased Coherent Navigation, a Bay Area-based startup that specializes in high-precision GPS technology, continuing a string of acquisitions in the location technology and mapping space. [1] Apple’s acquisition strategy has generally focused on small companies with niche technologies and talent that can be incorporated into its products, and this deal is no different. Maps and location technology represent a crucial and hotly contested area in the technology industry as an increasing number of applications and services– from taxi hailing to location-based advertising – rely on quality location data. Coherent’s technology enhances the accuracy, precision and signal integrity of GPS by combining data from standard mid-earth orbit GPS satellites with data from the low-earth satellites from the Iridium constellation. While consumer-grade GPS systems are typically accurate from 3 to 5 meters, Coherent’s High-Integrity system is reportedly accurate enough to provide location information to within a few centimeters. [2]

Trefis has a $134 price estimate for Apple, which is slightly ahead of the current market price.

See our complete analysis for Apple stock here

Relevant Articles
  1. Down 10% This Year, Will Gen AI Tools Help Apple Stock Recover?
  2. Down 5% Over The Last Month, Will Strong iPhone Sales Help Apple Offset Mac Headwinds In Q1?
  3. After Over A 40% Rally In 2023, Will Antitrust And iPhone Issues Hurt Apple Stock?
  4. Up 45% Since The Beginning Of 2023, Where Is Apple Stock Headed?
  5. Up 34% This Year, Will Apple Stock Rally Further Following Q4 Results?
  6. Will New iPhones Help Apple Stock Offset A China Slump?

Technology Could Aid Apple Maps, Watch And A Potential Car

While Apple hasn’t explicitly mentioned that it would be deploying Coherent’s technologies in its products and services, we do see some areas where high-precision GPS could be useful. The first area is likely to be Apple’s native maps application. When Apple’s home-grown maps application replaced Google Maps on the iOS 6 software in 2012 it was subject to significant criticism, owing to location errors and inaccurate data. However, the software has vastly improved over the last two years as Apple built up its location database and made a series of acquisitions to bolster the overall quality and user experience. Users and critics have also praised the application’s accurate and intuitive turn-by-turn navigation features and interactive 3D views. The higher-accuracy GPS data provided by Coherent’s technology could potentially aid the navigation feature on Apple Maps, particularly in areas with a higher road density or on complicated routes. The technology could also be valuable for Apple’s new and rumored products. For instance, the Apple Watch – which utilizes GPS data from the iPhone for its fitness tracking capacities – could benefit from more precise location data to estimate the distance moved by a user more accurately. Apple is also reportedly very interested in the automotive space, with rumors of an Apple-branded electric car making the rounds (related: Thoughts On An Apple Car). These advanced GPS technologies might prove useful for potential projects such as self-driving cars or related automotive systems.

View Interactive Institutional Research (Powered by Trefis):

Global Large CapU.S. Mid & Small CapEuropean Large & Mid Cap

More Trefis Research

Notes:
  1. Apple Acquires Coherent Navigation, A GPS Startup, The New York Times, May 2015 []
  2. Apple Confirms Acquisition of GPS Company Coherent Navigation, PC Mag, May 2015 []