Are the new GPS enabled smart phones killing the GPS market? It may, but I hope they will inspire new innovation. Right now it seems it is putting the squeeze on the GPS manufacturers. Garmins last quarter and outlook is not as good as it was: “The automotive/mobile segment revenues declined 31% on a year-over-year basis in the fourth quarter as the [personal navigation device] market declined from the 2009 holiday season”
That is a serious drop! I think though it is more a sign completion in a maturing market than the end of one. GPS in smart phones are great for the occasional use. They however do not have many of the feature a full GPS unit has. I can recalculate around a unexpected road closure, for example. Screen size for visual aids is another. I do not want a smart phone with a 5 inch screen like TomTom XXL 540TM.
The article concludes: “In effect the hand-held consumer GPS device market is crumbling as functionality that once required a stand-alone gizmo is incorporated on a widespread basis in smart phones.“
It may seem so based on current earning numbers but that can change.Garmin and TomTom will have to work hard to stay a head but I do not see the cell phone GPS replacing the stand alone GPS for those who truly use a GPS.
I think the low end basic GPS market will be tough as smart phone become more popular with their basic GPS functions. My Droid 2 has a basic GPS that does a pretty good job gettting me where I want to go. It does not however have all the functions of a stand alone GPS. I beleive as long as the company’s like Garmin continue to add useful feature there will continue to be a market. It will not be as wide open as it has been, but that is what happens as a market matures.
