Mobile phones killing Tom Tom GPS Satnavs
The full impact of Android’s penetration into the market has begun to create reverberations around the industry.
Comscore announced that 21 million Europeans have looked up directions on their satnav last year. 2/3 of these used it in a moving vehicle. Since Google announced that they will be releasing Google maps navigation free to users, the average price of GPS has plummeted. Nokia has responded by releasing free navigation ovi maps for nokia handsets. Its very likely with smart handset growth that next years Comscore figure is going to make this years paltry 68% seem like a bump in in the road.
This has far reaching implications right round the market, next year’s mobile consumer is going to expect satnav included and you can forget about the market for portable navigation devices, like tom tom and copilot. No one but the most dedicated road warriors will even consider spending more than 20 quid on them when the average new smartphone can do just as good( if not a better job.) 
For those of you with Android handsets in the UK who haven’t yet got Google navigation, or want to have a robust satnav that doesn’t require an internet connection to operate, look at the features you get in Alk Copilot live.
Now with phones being GPS enabled, what are the SatNav companies doing?
Garmin is working on releasing its
Garmins Nuviphone is first GPS company to embrace Android
Nuviphone- which is being launched soon and Tom Tom is seeking safe harbour by moving into in-car satnav supply.
With Android destined to be in vehicles in the next 2-3 years- I suggest ( and hope)that an android Tom Tom phone is just round the corner.
This same pattern has already happened to the Camera market- with margins being slashed and burned- if you product or industry is “mobile facing”- what is your strategy going to be?
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This trend toward commoditisation of the personal navigation market will also open up significant new markets.
I don’t think it is that much of a major issue yet – while it is nice to have the google maps navigation it doesn’t really compare yet to a proper satnav unit, especially when you consider you can pick up a good one for around £50 to £100.
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