Is Android a GPS killer?
If the stock market is any indicator, Google’s announcement that the next edition of the Android system will include navigation tools is seriously bad news for traditional satellite navigation manufacturers. But there’s some debate about whether that doom is too imminent to escape.
As we noted on Wednesday, the forthcoming Motorola Droid will be the first handset to feature the tools, which include turn-by-turn directions for journeys by car and on foot, and even incorporates local photographs from Google’s street view. However, the Droid won’t be alone for long. The technology will be available to all phones running the new Android 2.0
That news will not be welcome at the offices of firms such as Garmin and TomTom, which both produce standalone sat-nav equipment and license their technology to manufacturers of high-end smartphones. Amid analyst declarations of Android being a “serious threat” and even a “game changer”, stocks in the companies have taken a major slump, with TomTom at one point losing a third of its market value.
However, there’s a counter argument that it’s too early to sound the panic signals. Between the current low market share of Android phones, and the fact that it will only be available on new models, the GPS market isn’t about to collapse overnight. That gives the firms some time to figure out a response for if and when Google’s offerings become widely taken up.
That could include putting more emphasis on pushing GPS apps to phone manufacturers. An alternative tactic could be targeting customers who drive in areas with poor cellphone reception and stressing the way GPS can work reliably virtually anywhere.
Another advantage for the GPS firms is that they can offer updated live traffic information which allows for more useful directions for a particular journey, a service usually offered at a premium. Google, though, is currently working on a project to collect similar data from its users. That’s not going to produce particularly useful results right now, but if the customer base grows enough it will eventually reach the point where the results are detailed enough to be acceptable as a free alternative.
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November 4th, 2009
If this is simply an update of google maps, then what do you do if you are in an area without mobile phone reception, a particular problem in large parts of the US. A dedicated SAT NAV software has all the maps on the device, so the data connection is irrelevant. There is a good reason why Copilot is one of the best selling paid for apps on the iphone for example.