Sending GPS Devices the Way of the Tape Deck?
The smartphone is already the Swiss Army knife of the digital age — a quick flick of the finger can transform it into a camcorder, Web browser, gaming device or music player. For many consumers, the Apple iPhone and its competitors are versatile enough that they can get by without separate cameras and laptops.
GPS devices tend to render maps faster, but smartphones have advantages, too.
Now the smartphone is beginning to displace yet another stand-alone device — the GPS receiver — as a convenient way for drivers to get directions to unknown destinations.
More than 40 percent of all smartphone owners use their mobile devices to get turn-by-turn directions, according to data from Compete, a Web analytics firm. For iPhone users, the figure is even higher, eclipsing 80 percent.
High-end phones like the BlackBerry from Research in Motion and the new Palm Pre increasingly come equipped with features common in portable navigational devices, like spacious touch-sensitive screens, intuitive menu designs and improved audio capabilities.
“The smartphone has made a lot of progress in the last year,” said Dominique Bonte, director of navigation research with ABI Research. “It gets very close to what people expect from the experience of the personal navigational device.”
Sales of traditional GPS units from companies like TomTom, Garmin and Magellan (a unit of MiTAC International) have fallen sharply recently. During the first quarter, TomTom said it shipped 29 percent fewer GPS units compared with the period in 2008. Garmin said unit sales fell 13 percent in the first quarter compared with the previous year.
The stock prices of both companies have also plunged, with shares down more than 80 percent from their late 2007 peaks.
Meanwhile, shipments of smartphones in North America are expected to grow by 25 percent this year, with more than 80 percent of them equipped with GPS, according to ABI Research. “It certainly gives personal navigation device makers a run for their money,” Mr. Bonte said.
He said many users still prefered the overall experience of dedicated GPS devices, which tap the Global Positioning System of satellites to determine locations and plot directions. GPS devices tend to render maps faster, because that data is typically stored on the unit rather than being refreshed through a mobile Web browser.
Smartphones, on the other hand, are susceptible to interruptions from incoming phone calls, and using the mapping features for a long time can chew through battery power. In addition, some smartphone GPS services require users to pay a monthly fee.
The list of the smartphone’s shortcomings is dwindling, however, as some of the latest navigation applications offer voice navigation and take advantage of the phone’s always-connected state to offer real-time traffic updates, directions to contacts in the phone’s address book and more.
Moreover, at $100 to $300 apiece after carrier subsidies, smartphones are competitively priced with GPS units, which average about $177, according to the research firm NPD Group.
Some tech-savvy smartphone owners find that the GPS capabilities of their phones are good enough for ordinary use.
Andrew DiMarcangelo, a 22-year-old marketer living in Marlton, N.J., who describes himself as “directionally challenged,” said that while he preferred the interface of his Garmin GPS device, using his iPhone was much more convenient. “The simplicity of having one device and not needing to pull the Garmin out of my glove compartment is enough,” he said. “I want to get into my car and do as few things as possible.”
Perhaps more ominous for makers of GPS devices, a lot of potential customers are not even considering buying a stand-alone device.
“I’ve not stopped using a GPS because I never bought one in the first place — they are expensive and inconvenient,” said Steve Weller, 47, of Fremont, Calif. “Now with the iPhone, I will actually use GPS — and the 10 other functions it replaces.”
The traditional GPS device companies are trying to adapt, seeking to expand their reach into the smartphone market.
TomTom, based in Amsterdam, recently announced that it would introduce a portable navigation application for the iPhone this summer that would feature turn-by-turn directions and audio prompts. Unlike existing GPS apps for the iPhone, TomTom intends to charge a one-time flat fee rather than require users to pay a monthly subscription fee.
“It’s the manifestation of our strategy to make TomTom available across different platforms, including the smartphone,” said Tom Murray, the company’s vice president for market development.
Mr. Murray acknowledged that the iPhone and other smartphones were challenging stand-alone GPS hardware, but he said the company viewed it as a new avenue for revenue.
“It’s not a threat, it’s an opportunity,” he said. “We want to make sure that when consumers opt for the iPhone as their exclusive navigation device, it’s our solution that they’re buying.”
In addition to the iPhone app, the company plans to sell an optional car kit accessory that will mount the iPhone to a car windshield, power and charge it and enhance its GPS signal.
Garmin, another leading GPS manufacturer, is taking a different approach. The company, based in the Cayman Islands, plans to release a combination navigational device and cellphone called the Nuviphone later this year.
“GPS is one of the up-and-coming trends with mobile phones and becoming a must-have feature,” said Jessica Myers, a Garmin spokeswoman. “That is one of the reasons we started developing the phone.”
Garmin has yet to announce carriers or pricing details. But the company’s bet — that it can beat established smartphone makers like R.I.M., Apple, Palm and HTC at their own game — is a risky one at best, said Julien Blin, principal analyst at JBB Research, who follows the industry.
“It’s more like a desperate move. Now that you have the iPhone and the Pre, it’s just too late,” Mr. Blin said. Smartphones equipped with GPS “are the model moving forward that is going to be successful.”
source
GPS devices tend to render maps faster, but smartphones have advantages, too.
Now the smartphone is beginning to displace yet another stand-alone device — the GPS receiver — as a convenient way for drivers to get directions to unknown destinations.
More than 40 percent of all smartphone owners use their mobile devices to get turn-by-turn directions, according to data from Compete, a Web analytics firm. For iPhone users, the figure is even higher, eclipsing 80 percent.
High-end phones like the BlackBerry from Research in Motion and the new Palm Pre increasingly come equipped with features common in portable navigational devices, like spacious touch-sensitive screens, intuitive menu designs and improved audio capabilities.
“The smartphone has made a lot of progress in the last year,” said Dominique Bonte, director of navigation research with ABI Research. “It gets very close to what people expect from the experience of the personal navigational device.”
Sales of traditional GPS units from companies like TomTom, Garmin and Magellan (a unit of MiTAC International) have fallen sharply recently. During the first quarter, TomTom said it shipped 29 percent fewer GPS units compared with the period in 2008. Garmin said unit sales fell 13 percent in the first quarter compared with the previous year.
The stock prices of both companies have also plunged, with shares down more than 80 percent from their late 2007 peaks.
Meanwhile, shipments of smartphones in North America are expected to grow by 25 percent this year, with more than 80 percent of them equipped with GPS, according to ABI Research. “It certainly gives personal navigation device makers a run for their money,” Mr. Bonte said.
He said many users still prefered the overall experience of dedicated GPS devices, which tap the Global Positioning System of satellites to determine locations and plot directions. GPS devices tend to render maps faster, because that data is typically stored on the unit rather than being refreshed through a mobile Web browser.
Smartphones, on the other hand, are susceptible to interruptions from incoming phone calls, and using the mapping features for a long time can chew through battery power. In addition, some smartphone GPS services require users to pay a monthly fee.
The list of the smartphone’s shortcomings is dwindling, however, as some of the latest navigation applications offer voice navigation and take advantage of the phone’s always-connected state to offer real-time traffic updates, directions to contacts in the phone’s address book and more.
Moreover, at $100 to $300 apiece after carrier subsidies, smartphones are competitively priced with GPS units, which average about $177, according to the research firm NPD Group.
Some tech-savvy smartphone owners find that the GPS capabilities of their phones are good enough for ordinary use.
Andrew DiMarcangelo, a 22-year-old marketer living in Marlton, N.J., who describes himself as “directionally challenged,” said that while he preferred the interface of his Garmin GPS device, using his iPhone was much more convenient. “The simplicity of having one device and not needing to pull the Garmin out of my glove compartment is enough,” he said. “I want to get into my car and do as few things as possible.”
Perhaps more ominous for makers of GPS devices, a lot of potential customers are not even considering buying a stand-alone device.
“I’ve not stopped using a GPS because I never bought one in the first place — they are expensive and inconvenient,” said Steve Weller, 47, of Fremont, Calif. “Now with the iPhone, I will actually use GPS — and the 10 other functions it replaces.”
The traditional GPS device companies are trying to adapt, seeking to expand their reach into the smartphone market.
TomTom, based in Amsterdam, recently announced that it would introduce a portable navigation application for the iPhone this summer that would feature turn-by-turn directions and audio prompts. Unlike existing GPS apps for the iPhone, TomTom intends to charge a one-time flat fee rather than require users to pay a monthly subscription fee.
“It’s the manifestation of our strategy to make TomTom available across different platforms, including the smartphone,” said Tom Murray, the company’s vice president for market development.
Mr. Murray acknowledged that the iPhone and other smartphones were challenging stand-alone GPS hardware, but he said the company viewed it as a new avenue for revenue.
“It’s not a threat, it’s an opportunity,” he said. “We want to make sure that when consumers opt for the iPhone as their exclusive navigation device, it’s our solution that they’re buying.”
In addition to the iPhone app, the company plans to sell an optional car kit accessory that will mount the iPhone to a car windshield, power and charge it and enhance its GPS signal.
Garmin, another leading GPS manufacturer, is taking a different approach. The company, based in the Cayman Islands, plans to release a combination navigational device and cellphone called the Nuviphone later this year.
“GPS is one of the up-and-coming trends with mobile phones and becoming a must-have feature,” said Jessica Myers, a Garmin spokeswoman. “That is one of the reasons we started developing the phone.”
Garmin has yet to announce carriers or pricing details. But the company’s bet — that it can beat established smartphone makers like R.I.M., Apple, Palm and HTC at their own game — is a risky one at best, said Julien Blin, principal analyst at JBB Research, who follows the industry.
“It’s more like a desperate move. Now that you have the iPhone and the Pre, it’s just too late,” Mr. Blin said. Smartphones equipped with GPS “are the model moving forward that is going to be successful.”
source
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