Battle for GPS Turf Presentation by Noah Rattner & Adison Covey.

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Presentation transcript:

Battle for GPS Turf Presentation by Noah Rattner & Adison Covey

Smart Phone Takeover GPS marketers navigate in tougher market as mobile apps threaten to elbow them aside. Smart phones offer more convenient user experience at lower cost and overall simplicity.

PND Responds TomTom and Garmin are coming out with new products that play into, rather than fight the trend. TomTomTomTom has introduced turn-by-turn apps and are launching car kits that include adjustable phone mount, microphone, and speaker integration. TomTom Real-time traffic? Social-media mapping?

The Facts 17% of North American adults own PNDs 4% own built-in system 3% own phone with nav-apps 4% own both GPS Devices dropped 30% YOY in price from $244 in 2008 to $188 in 2009

More Facts 150M turn-by-turn nav devices worldwide 90M are PNDs 35M are built-in car systems 28M are nav enabled phones TomTom Smart Phone app costs $100! Nuviphone Nuviphone from AT&T costs $299 with built in nav system (October 4 th – did you hear about it?) Nuviphone

Fortune Cookie Says… “Garmin and TomTom will be successful going forward because they're innovating and differentiating, and they've got the software and skills and knowledge with maps that the phone makers don't," Mr. Golvin said. "I'm not sure about all the other [PND] brands though. I think it's going to be a pretty tough road for them."

Think about it… What happens when your phone rings while navigation and guidance is on? How will marketers and developers adapt to local laws and regulations which prevent drivers from using phones? How can PND developers compete with pricing of apps and non-service plans? pricing non-servicepricing non-service How can PND developers compete with mobility and accessibility features? Smart Phones

Think about it… How can Smart Phone firms compete with quality and accuracy of PNDs? How should PND developers respond to market demand as technology changes? Is social-media mapping a violation of your personal life and interests? Should Smart Phone and PND developers join forces to give GPS Systems better price control? Portable Navigation Devices (PNDs)