According to WMPowerUser, Skyhook, a company responsible for the early geolocation services inside the iPhone, admits that it has lost some contracts due to competition from Google–Google offers geolocation services for free whereas Skyhook charges for the service. Among those few contracts lost, Skyhook’s CEO admitted to Giga Om that the firm had lost the contract for the XPERIA X2.

Once Skyhook was designed into the iPhone, Google folks took notice of Skyhook and started to develop their own competitive offering, which is being offered for free, while Skyhook charges for its offering. Morgan admits that the company has lost a couple of deals because of free offerings. For instance, the X2 edition of Sony Xperia phone (Windows Mobile-based) uses geolocation data from Google.