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Apple’s Biggest Challenge Yet

A few days ago, we reported on the recent upheaval for Apple (AAPL) – including the recent high-profile bomb of its Maps application.

Embarrassingly, the company has had to revert back to Google (GOOG) Maps for the iPhone.

So is Apple out of its league here? Or can the company reload and launch a revised maps application that will seriously challenge its rivals?

As we noted in the article, Apple isn’t used to failure. So you can bet it won’t just accept defeat. But it faces a real battle if it wants to become a player in the maps area.

First, it has to fix the problems that plagued the original version – such as a lack of mass transit information, plus poorly labeled locations and landmarks – and come up with a service that actually gets people where they want to go! Then it has to persuade people to switch from Google.

Not to mention that even without its failure, Apple is already playing catch-up. Indeed, Mashable’s Editor-in-Chief, Lance Ulanoff, believes the company only has a “50-50 chance of being successful in the maps space.”

That’s bad news, since he also states that the links to local commerce and advertising from mapping represent a $1 billion industry.