Free google maps a threat to the GPS folks?

I found this in another n/g:
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http://www.cnbc.com/id/33863696/print/1/displaymode/1098/
How the Droid and Google Threaten the GPS Makers

Apple may dominate the smart phone market, but Motorola and Verizon
have made some big waves in the industry lately.

In its opening weekend, the Droid — Motorola's new smart phone running
on Verizon's cellular network — has sold nearly 100,000 units, says
Broadpoint AmTech analyst Mark McKechnie. And demand seems to be
holding fairly steady.

Apple investors aren't too worried about the fate of the iPhone. The
3GS, after all, sold 1 million units in its first weekend in June. GPS
makers' stocks, however, haven't been so lucky.

Garmin shares were trading in the $38-$39 range until Oct. 28, when
the Droid was formally announced. The cell phone includes a free GPS
service from Google called "Google Maps Navigation." Within days, the
stock closed at under $27. TomTom shares were similarly affected.

It's not the Droid per se that has investors nervous — it's the
operating system running the phone. Google's Android OS is
customizable, cheap and has become a playground for the Internet giant
to experiment with new features. The free GPS is the most notable of
those to date.

"People are trying to weigh the threat posed by this — not just one
device on one network, but the potential of [free GPS] being pervasive
over time," says Jeff Rath, global head of technology research for
Canaccord Adams.

Garmin's stock has rebounded over the past few days, as investors
recall the company has beaten expectations for the past two quarters
and decided the perceived threat is less important than actual cash
flow.

In the long term, though, there could be legitimate cause for concern.
Before the Droid's free GPS hit the market, there were two map
providers for GPS devices — Navteq (owned by Nokia ) and Tele Atlas
(owned by Tom Tom). Any GPS on the market leased maps from one of
these two companies — and had to pay a hefty license fee to do so.

Google bypassed the providers, using its own maps instead — and that's
a move that caught the GPS industry off guard.

"It's a huge change to the industry — going from a duopoly to the
introduction of a disruptive third party," says Rath. "On a cost
basis, not only is there a competitive threat, but now Google has a
cost advantage as well … How is Garmin going to compete?"

The free GPS service will likely eventually spread beyond Droid —
especially as Android gains a foothold in the smart phone (and
possibly tablet) market.

Google has also reportedly expressed interest in making the app
available on the iPhone — which would be a significant competitor to
existing GPS apps, including one from TomTom that sells for $100.

Some of the recovery in GPS stocks could also be tied to investors
finally getting hands-on time with the $200 Droid.

Many tech enthusiasts and tech sites are swooning over the phone —
Gizmodo wrote, "It's this simple: If you don't buy an iPhone, buy a
Droid." Some more typical consumers, though, feel it needs more
refinement before it becomes a true "must have." Subtle things, like
the lack of a springy "snap" when the keyboard is opened and the
layout of the Android OS, have drawn some criticism.

Those flaws are easily corrected in future versions, though — and
that's when analysts say the threat to GPS makers will become
particularly pronounced.

-- article snipped --

It seems to me that there's a huge difference between units like the
iPhone or the Droid, and stand-alone navigation devices made by
companies like Garmin and TomTom.

The former only work when you have access to a wireless network, and a
willingness to pay data transfer charges every time your map updates.

The latter work nearly anywhere on earth, and incur only a one-time cost
at the time you acquire them, operating ever after with no recurring
charges at all.

There's a third category (sort of) which can be far less costly then
either of the above: you can run an open-source navigation app on your
cellphone or computer using an open-source map with no data transfer
charges at all. Devices not already equipped with GPS capabilities can
be augmented with Bluetooth-connected units for less than a tenth the
cost of a full blown GPS device -- you can have fully functional
navigation capability for under $50US, assuming you already have a phone.

Isaac

GPS revolutionizes transportation as the telephone pushed out
telegraphy. It is in my opinion, one of the 10 greatest achievements
of Advanced Civilization in my lifetime; some of the others being
*development of the transistor
*development of the microprocessor and associated technology
*non-invasive medical imaging (MRI, CAT, PET, etc)
*digital color television via global satellites
You can think of some more.

I see Galileo is putting 4 Space Vehicles aloft for proof of concept;
two sv's in each of 2 rockets. Will be interesting to watch them
build their constellation.

Nick

It does work everywhere on earth.
--
Alan White
Mozilla Firefox and Forte Agent.
Twenty-eight miles NW of Glasgow, overlooking Lochs Long and Goil in Argyll,
Scotland.
Webcam and weather:- http://windycroft.gt-britain.co.uk/weather

Not in the polar regions - the screen will freeze.

SCNR ;-)


Juergen Nieveler
--
Well, to be Frank, I'd have to change my name