March 25, 2009

Garmin working with Sprint on Connected GPS - When will Connected GPS Take Off?

Two news items came on the radar yesterday about connected GPS, which seemed coincidental after just reviewing the TeleNav Shotgun. My conclusion here, and it may be no surprise, is that great capabilities await us as consumers who get this connected GPS thing right. Right data integration, right interface, right product features and right business model. A good economy will help too.

The WSJ reported that Sprint and Garmin are working together on a connected GPS; Garmin doing the heavy lifting, Sprint providing the wholesale cellular connection. Much like the Kindle book reader, the device would call upon the Sprint network to get the information without advertising that Sprint is really involved.

Not a big surprise that Garmin is working on a connected GPS because: 1) They leverage innovation platforms well, and what connected navigation features that are designed for the Nuvifone should in some form find its way to stand alone GPS units, and 2) Garmin appears to be taking up its place as slow to market with a rock solid option. With Dash, Isignia, TeleNav, and soon TomTom hitting the US market, Garmin couldn't leave this market alone.

Yesterday news also came out that the GPS market is predicted to continue its growth pattern in 2010, assuming that the economy improves. ABI also indicated that they believe that connected GPS nit sales may not take off until the overall economy and the GPS market resume strong sales. Makes sense; if you might lose your job, and the traffic congestion is down anyway, maybe you talk yourself into not buying a unit with a monthly subscription. I wouldn't be surprised that despite some critics, that Garmin tries an ad supported model for the connected GPS. If they can offer free traffic updates over the FM airwaves covered by an ad supported model (~$60 year savings), there may be a more sophisticated targeting capability that ties into your GPS use in order to garner higher ad dollars on the GPS. Even if they could cover half the expense, a $5/mo fee would be a lot more motivating than the current $10 range for connected models.

I know a lot of people who can't wait for the TomTom 740 GO Live to hit the shelves (Loyal TomTom-ers), and I will say that internet connected traffic is a lot better than FM connected traffic; it's tough to go back.