GPS battle heats up
2010 is going to be a tough year for GPS makers such as TomTom and Garmin. Their market is going to come under increasing threat from the likes of Google. The search giant has been rolling out a steady stream of mapping improvements and is now well positioned to take a serious bite out of their market share.
Two years ago mobile phones equipped with GPS units were few and far between. And those that did have GPS units were installed with one or other version of proprietary GPS software, usually provided by one of the traditional GPS makers. Users often had a free test period granted but then had to pay to buy a licensed copy of the software.
At the close of 2009 that has changed, forever, and GPS makers are looking at a tough future.
For many years now Google has been offering free mapping services which users could use to find points of interest and routes while developers could “mash them up” into new and interesting applications. Google’s first maps were relatively crude but as new layers and features were added they started becoming seriously useful; unless you were in your car and needed to get from A to B. Then you needed a GPS unit with voice directions, points of interest and route mapping.
Then Google introduced basic route directions for their maps and mobile phone makers began to include them in their phones as added extras. Now Google has taken it even further and has launched voice directions which mimics the turn-by-turn instructions offered by standalone GPS devices. Although only recently launched and not yet available outside of the US, Google’s Maps Navigator is a game-changer for the GPS industry. GPS devices with voice guidance were pretty much the exact value proposition that GPS makers were selling to consumers. Now Google does it for free and potentially better than traditional makers using its extensive databases to build comprehensive navigation applications.
Responding
GPS makers like Garmin and TomTom are obviously well aware of the impending threat posed by Google’s Maps Navigator and are starting to respond to the sudden shift in terrain. The first step that both Garmin and TomTom have taken is to increase their focus on the mobile phone market and both now sell a navigation product for smartphones. Garmin, however, has gone even further and has entered the cellphone market with its own phone. Its Nuvifone is a mobile phone with many of the features of its traditional line of GPS devices. And early in 2010 Garmin is planning to release another Nuvifone, this time with Google’s Android operating system installed.
But, entering the cellphone market may not be the best approach from Garmin and TomTom in the face of these changes. Instead they should look to take some direction from the digital camera market which too faced sudden changes in its environment when mobile phone makers began releasing camera phones. Sticking to their guns, camera makers upped the ante and entrenched themselves as the “quality” makers of cameras. It is something that the GPS makers need to do: build the best quality devices and ensure that mobile phone navigation is always seen as second rate. Instead of trying to compete on the same platform and for the cheapest price, they need to add new features to their devices to add value and make them indispensable. But, no matter what they do, the GPS market is going to change significantly in the coming year.
GPS & Google Maps – discussion
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