Is Google about the shake up the satnav market? It appears so with the announcement on Wednesday of a new Google sat-nav application for mobile phones. And the best part is that it will be free – well, for compatible phones.
The Google sat nav app is expected to allow free real-time, turn-by-turn directions for people to follow on their phones. The Motorola Droid (which uses the Google Android operating system) will be the first mobile phone to be equipped with the new GPS system. At this stage, we are unsure of the compatibility with existing models or plans for future models. Presumably the phone requires an integrated GPS chip to offer the sat nav functionality.
We have high expectations for the Google Maps Navigation, if we are to use Google Maps, Google Earth and Google Street View as a taster of what’s to come. We will also be interested to see the integration with other services by Google. At its core, Google is an advertising platform. Everything they do, it is done with the potential to link consumers with advertisers. With a sat nav device, they will have the ability to leverage value from their local searches like businesses listings. If you were a restaurant, you want to ensure that your listing appears in front of visitors in your vicinity.
Google is also extremely proficient with analysing data. It will also be interesting to know whether the live traffic data will be used to improve Google Maps by analysing journey times.
Google’s entry to the sat nav market is a big announcement. Upon the news, shares in Garmin and TomTom fell by 18% and 13% respectively. If SatNavPrices.co.uk had a stock market listing, then our shares would drop too!! The TomTom iPhone app costs roughly £60, so a free sat nav mobile application from Google will provide tough competition. Google also has the cash to invest in projects should they see fit.
The success of Google Maps Navigation will largely depend on the adoption of Google Android as a mobile phone platform. With an increased share of the mobile market, a greater opportunity will exist to gain ground on the likes of TomTom and Garmin.
However, maybe, just maybe, this announcement just the first stage for Google by entering to the GPS market. Next step a dedicated satnav device. One stage further we all drive around in Google cars. Seem far fetched? Well maybe not if you take a look at the list of investors in the electric car company, Telsa Motors.
Whatever happens, this will be an exciting time to see how Google’s announcement pans out.