Apple was planing to make its own Map service known as Apple Maps Service and was looking for some Maps Application Developer to improve the location services on its iDevices. In the next iOS 5 Google Maps will be used, not the Apple Maps Services.
According to 9to5google sources :
Now, sources have told 9to5Google that although Apple is working to improve the iOS Maps application, iOS 5 will not bring an Apple developed maps service and Google Maps is still in. Besides Apple’s purchase of both Placebase and Poly9, some speculated that Apple is building their own maps service to either compete with Google or step away from their input into iOS.
It is said that Apple wants to make its own Map Service because former Google CEO Eric Schmidt resigned over conflict of interest. Apple has also added that they will be competing with Google head to head on their upcoming cloud based Music service.