Car Manufacturers vs. TomTom, Garmin and all PND's
Don't know about you, but I think that TomTom, Garmin and other PND makers have won round one versus the automobile manufacturers, and they are setting themselves up to be the long term winners too. With the cost of an in car navigation system reaching well into the thousands of dollars, consumers are slow to jump on the bandwagon. TomTom and Garmin offer excellent PORTABLE navigation systems for about half the cost. While 90+% of your driving will be in your own car, don't you want to be able to take the GPS with you when you travel and use a rental car? What better use for a GPS then when you are in a strange city?
Long Term Outlook for GPS
Recent sales estimates by the Consumer Electronics Association put portable navigation sales in the US at 4.2 million in 2010, while in-dash units estimates are at 225,000 in 2010. This isn't surprising given the relative costs and inherent benefits the portable units.
So with the recent announcement that TomTom and Johnson controls are teaming up to provide even better integration so that your TomTom will be able to integrate and speak through your car stereo, the relative advantages of pre-installed navigation systems drops even further. I would expect that the capabilities of the PND will expand even further as the data download speeds increase. In my previous editorial on 8 Things I would do if I were TomTom, I highlight the need for increased wireless capabilities of the PND.
I would imagine that Garmin would not let TomTom get too far ahead here, and I would expect a similar program to be launched for Garmin.
The ultimate end game though is for car manufacturers to offer total Bluetooth integration so that many devices can access the car systems, including your GPS. Ah, one can only dream. For now, I'll be happy with mine stuck to the windshield with it barking out commands over a small speaker, navigating as I go.
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Posted by Scott Martin at October 13, 2006 7:40 AM
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