Google steps into navigation market



Google steps into navigation market
Google today announced Google Maps Navigation for Android 2.0 devices, a free turn-by-turn navigation solution with voice guidance and automatic rerouting, 3D views, satellite view and speech recognition.

Watch the video below:

The DROID smartphone from Motorola is the first device with Google Maps Navigation. This product will be available next week in the United States on the Verizon Wireless network for $199 with a 2-year contract and $100 mail-in rebate. Customers will need a voice plan starting at $39 and a web and email plan for $29 per month.

Wednesday October 28, 2009
Ludovic Privat




1.Posted by gatorguy on 2009-10-28 18:48
IMO, this may spell the end of the road for TomTom as we know it now. Unlike their main competitor, Garmin, who from the beginning included aviation, marine, fitness and handheld in their business plan, TomTom hooked their star to pnd's. Once the wilting pnd market became obvious, they finally decided to move from a one-trick pony into mobile apps, a market they stuck a toe in a few years ago, then largely abandoned. Their recent decision to forego development for the Android platform now makes complete sense. There's no way a high-priced navigation app can get much traction on that platform with a pretty-well designed first effort from Google already included free. With the likely roll-out of Google's turn-by-turn on the iPhone platform sooner rather than later, both Navigon and TomTom will be unable to sustain a rather high price for their software solutions. With the plethora of acceptable navigation apps at little to no cost on mobile platforms, premium prices were already under pressure. As I see it, TomTom (Navigon as well) has little choice but to drop the price of their offering, maybe even in half, or risk being a non-player entirely. The big problem now is, what do they replace that lost revenue with? Until last year they were almost totally dependent on pnd sales. Even now the revenue from TeleAtlas combined with iPhone software sales is negligible, contributing little if anything to the bottom line. Does it have the potential to negatively affect Garmin as well? Absolutely. They've likely got one mobile-market -shot left with their springtime Android nuviphone. The original is a disaster with the price already down to $99. But whether Garmin or TomTom (or any of the other combined hardware/software providers) survive may come down to their basic business plans. One never put all their eggs in one basket to begin with. The other big guy never planned properly from the start. Just my opinion.

2.Posted by O.C on 2009-10-28 20:47
so, it's not that 'free' as everyone is thinking?

3.Posted by O.C on 2009-10-29 17:16
@gatorguy. the app is not really for free right? there are several monthly subscriptions you need to have to be able to use the app.

4.Posted by Jan Prins on 2009-10-29 23:55
@gatorguy I disagree, of course phone based navigation pose some threat to dedicated pnd's. Obvisously not all cars will be equipped with PNDs, while all drivers can benefit from navigation and have phones with them. Incidental users who havent bought a pnd yet might use phones for their occasional needs, but this is not a market that TT is addressing at all. In addition many companies have tried off board solutions, and all of them failed largely because of the dependency of the mobile network and problems of having the primary function of their phone unavailable while using it for navigation. This is a fundamental issue that even Google cannot solve.
Unlike Garmin TT focus on automotive benefits them as the real threat for their market segment comes from new cars with preinstalled and integrated navigation. It's the car manufacturers hearts and minds that TT has to win. The threat of a common enemy Google may even benefit them here. TT is the only company that has a technical superior product offering compared to Google. If it wasnt for TT dislike of the guys in Redmond i'd anticipate a takeover by MSFT. I am buying their stock now.
http://www.linkedin.com/in/prinsjan

5.Posted by flboy on 2009-10-31 15:43
Keep in mind that TomTom, who owns TA, charges Google for every map license that has turn-by-turn voice navigaton. So, as long as Google is using TA maps, TomTom gets some revenue which is more than anyone else will be getting.

6.Posted by Dan on 2009-11-02 10:32
I agree mostly with gatorguy (#1)- with a couple of provisos. TomTom and Garmin have 80% of their business in PND. And let's not forget the car companies...GPS will be standard within 5 yrs on ALL car models. So big trouble- everyone knows it...look at their shareprice (P.E. ratio is pitiful).

Firstly- we have to remember that the super-smartphone (hyperphone?!) market is a small part of the total addressable market and will be for a few years yet. So there's still some scope for growth in pnds for a couple of years.
Secondly, Pnds are really cheap and no contract so still very attractive for the mainstream.
Three, PNDs still deliver an excellent experience. Lots of complaints about delays in GPS signal etc on iPhone for example and you can simply forget online maps for navigation- that simply is not good enough. e.g. Lost in middle of Wales- no phone signal- no Satnav maps! Truly buggered - maps on device is what we want but will Google go that way? In fact, will their map suppliers let them do that without charges?Don't know.

So all in- think this is the beginning of the end. Not the end. As an aside, actually TomTom started as a mobile app outfit; THEN branched into pnd units when they saw a market. So in fact- they're gonna have to return to their routes....back when they were a 60 person company! (+Teleatlas).

TomTom and Garmin are gonna wriggle a lot....then shrivle. Wriggling will use up all their cash.


7.Posted by Robert Gardner on 2009-11-02 23:04
MSN for garmin gps is a joke, I recently purchased a garmin785T because of all the MSN features, too bad for me there closest tower is 100 miles away, in fact if I left my home in Wi I still would only have access to four towers on my way to colorado, I would have been better off buying a $79.00 unit instead of $400.00, I can only hope garmin comes up with a retro fix, if not I have a garmin, used three times for sale..

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