This is a news said that Baidu declared it will offer free APP Navigation since 28^th Aug. and even more, customers can get their money back if they have already paid for it. That’s marvelous news for all Chinese car owners.  Later, another navigation provider, AutoNavi, declared it will offer free service too. That is so good for car owners.

Before this, both are charging application software, baidu is 30 yuan, and the AutoNavi is 50 yuan. Compared with the challenger  Baidu, AutoNavi face a very bad situation now. In 2013, according to the second-quarter earnings,  AutoNavi's both revenue and net profit are year-on-year decline, the net revenue of $38.2 million, and $40.2 million a year earlier. Net profit of $3.8 million and $8.8 million a year earlier.

it is expected that after the free policy implenentation, AutoNavi will lose a lot of revenue. On the news, AutoNavi shares plunged more than 11%.