Sunday, November 29, 2009

GPS cell phone apps challenge standalone devices

By David Twiddy / AP: Yahoo! Tech (CLICK to read more)

"The growth of cell phones with global-positioning technology is making life uncertain for the makers of personal navigational devices that help drivers figure out where they are and where to go.

Manufacturers of standalone GPS products will have to move quickly and smartly to transform their dumb map readers into intelligent devices that can provide a host of services such as traffic avoidance.

Otherwise, they risk obsolescence in a future in which customers view navigation as simply one more application for their phones. Some of the newer apps already closely match what basic, dashboard-mounted gadgets can do.

'You have to redefine the category somewhat, like what Apple did with the iPod Touch,' said Ross Rubin, technology analyst for research firm The NPD Group. 'That turned it from something that was just a media player into something that accessed the Web.'

Garmin, TomTom and other makers of satellite navigational devices could take a lesson from camera makers, which have convinced consumers that they still need standalone devices because there is a significant drop in quality with cameras built into cell phones.

Those GPS manufacturers now must make a similar argument for their devices or add enough extra services to give shoppers a reason to buy."

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