Nokia Free Nav

http://www.independent.co.uk/life-style/gadgets-and-tech/news/tomtom-shares-dive-as-nokia-offers-free-navigation-1874977.html

"Shares in TomTom fell 15 per cent on the news and were down 10.4 per
cent at 1326 GMT, while Garmin shares were expected to open more than
8 per cent lower. "

"Analysts concluded last year after Google's foray into navigation
that it was unlikely TomTom, Garmin and Nokia would ever recoup their
big recent investments in navigation technology."

The following from the BBC

Phone giant Nokia has launched a free map and navigation service for
its handsets that analysts believe could challenge stand-alone sat-nav
devices.

The service stores maps on the phone, cutting down the need to update
and download new ones over the network.

Ovi maps will initially be available on 10 handsets and will offer so-
called "turn-by-turn" navigation, similar to that in existing GPS
devices.

More at http://news.bbc.co.uk/1/hi/technology/8472165.stm

Nokia sells phones, not navigation devices.
They just offer the navigation as a bonus to sell more phones, so...
not a big problem for them.
You have some more troubles if you core business is to sell
navigation, considering that Google and Nokia are offering it for
free...

wrote:



Garmin seems well positioned

Tomtom and Nokia are the ones that spent billions on purchasing
mapping companies

Why?
Garmin sells navigation systems that are now free from Google and
Nokia
(ok, they are not the same: Google and Nokia are on the smartphone
business, not really "navigators")


But Nokia is going to use them and giving them for free to gain market
share in (smart)phone selling
while tomtom can only loose market share in the navigation market: if
you buy a smartphone with free navigation, are going to buy a TomTom
nav?