GPS World: The iPhone's Second Coming

Perspectives on LBS =E2=80=94 Early June Newsletter
http://lbs.gpsworld.com/gpslbs/article/articleDetail.jsp?id=3D522930

LBS service providers are cheering the new iPhone: it has GPS, a lower pr=
ice,=20
and Apple's commitment to pave the way for enterprise apps.

Jun 11, 2008
By: Kevin Dennehy

The iPhone's Second Coming

Apple announced at its WorldWide Developers Conference earlier this week =
that=20
the long anticipated new iPhone will include GPS. Perhaps even more impor=
tantly,=20
Apple also announced a price drop. The low-end 8 GB model will sell for $=
200;=20
the high-end 16 GB will be priced at $300. That's $200 below the existing=
=20
non-GPS units, and not much above low-end personal navigation devices (PN=
Ds).=20
There is the obligatory two-year contract, of course. Finally, Apple has =
been=20
working hard to win IT department support for enterprise apps, so maybe=20
big-company employees can finally get their hands on an iPhone.

So far, there's no information available on who's going to provide naviga=
tion or=20
traffic information. It was announced at the conference that Loopt will p=
rovide=20
its social networking app and the Associated Press will offer an LBS-base=
d news=20
service. Other LBS apps are sure to follow in quick order.

To be sure, Apple's announcement is significant, maybe even huge. Apple's=
=20
current production pace of about 1.8 million phones per quarter could soo=
n=20
double, thanks in part to the lower price. Jobs noted that even now, the =
price=20
may be too high for true mass-market penetration. Several pundits have no=
ted=20
that "Apple wants the world." The outcome of that ambition =E2=80=93 if i=
ndeed, it is=20
true =E2=80=93 is still in doubt, but it can be fairly said that "this ch=
anges=20
everything." In short, Apple did not disappoint.

First, there is navigation. Mobile-phone nav continues to grow at a blist=
ering=20
pace. There already are about 5 million to 6 million subscribers to mobil=
e-phone=20
navigation services; some analysts project as many as 20 million in three=
years.=20
Earlier this month, Networks in Motion (NIM) said that it had received a =
record=20
5 million navigation requests the day before Mother's Day. You gotta wond=
er how=20
that many people couldn't find their way to their mom's house, but NIM sa=
id=20
there was also a spike in information on requests for restaurants near=20
destinations. The move to mobile-phone nav from PNDs is under way in earn=
est.=20
And think of pedestrian nav. The iPhone is ideal for this use.

Mio has introduced GPS phones similar to iPhone and Garmin plans to,=20
acknowledging that the shift is underway. There will be no immediate effe=
ct on=20
this trend from the new iPhone. But it will be accelerated by the iPhone'=
s=20
widely applauded elegant interface, which may make navigation on a phone =
easier.

Another feature on the new iPhone not available on the original is 3G. In=
recent=20
years, PND makers have been growing fat on the in-car market. But 3G, as =
we all=20
now, allows the iPhone, or other phones for that matter, to link to the c=
ar.=20
That makes in-vehicle resources, such as speaker phones, steering-wheel t=
uning,=20
etc., to be used to enhance the user experience. Soon all vehicles will b=
e=20
hosting 3G devices. That's more bad news for dedicated in-vehicle nav sys=
tem=20
makers. High-end vehicles will continue to have nav, but, overall, the fi=
xed=20
in-vehicle market will continue to stagnate.

Location-based services (LBS) will also be a beneficiary of the new iPhon=
e =E2=80=93 in=20
a big way. Apple has always viewed the iPhone as much a hand held compute=
r as a=20
phone. That has influenced all of its interface and application designs. =
Many=20
friends have told me they often access the Internet from their iPhone ins=
tead of=20
using their desktop machine. One drawback to the spread of LBS services h=
as been=20
the awkwardness of using phones for many mobile applications. Cell-phone =
makers=20
have been struggling to catch up with the first iPhone. Now there's a sec=
ond=20
version that will be even more challenging.

The new phone itself will initially have two LBS applications in addition=
to=20
navigation (with weather and traffic). Loopt's popular social networking =
will be=20
available for free from Apple's AppStore when it begins operation. "We've=
=20
developed for nearly every platform," Loopt founder Sam Altman said. "Thi=
s one=20
is the best." The Associated Press will be offering a location-based news=
=20
offering. Users can choose as many locations as they want where they woul=
d like=20
news specific to that location. And as they are roaming, the AP will offe=
r news=20
for the immediate surroundings. Users can upload photos of news events,=20
presumably with location attached, allowing AP to reverse geocode the coo=
rdinates.

These LBS applications, no doubt, will be followed by dozens more, as dev=
elopers=20
scramble to get applications onto the iPhone. In the end, the spread of L=
BS will=20
be greatly aided by the iPhone, and the similar hardware offerings sure t=
o=20
follow from cell-phone competitors like Nokia, Samsung, and Motorola. LBS=
=20
applications will be far easier to access and use. But success is by no m=
eans=20
assured. For an application to be successful, users must determine that i=
t=20
delivers enough benefit to warrant their investment in time (and cost, if=
any).=20
"We think this is a new era in mobile," said Loopt's Altman. I'm afraid i=
t may=20
be a little premature to declare that, but no one can argue that this isn=
't a=20
great day for LBS

Perspectives on LBS - Early June Newsletter
http://lbs.gpsworld.com/gpslbs/article/articleDetail.jsp?id=522930

LBS service providers are cheering the new iPhone: it has GPS, a lower
price, and Apple's commitment to pave the way for enterprise apps.

And the consumer that doesn't fork over big bucks for a data plan are
the losers.

If the Red Sea parted, would you complain about having to walk in the mud?
--
Mike Russell - http://www.curvemeister.com