Garmin, TomTom Settle One Fight, In Order To Concentrate On A Different Fight
from the just-merge-and-get-it-over-with dept
TomTom and Garmin have been involved in a really nasty intellectual property battle over the past few years, involving multiple lawsuits over multiple issues in multiple locations. It really was a case of patent nuclear war, where both sides were throwing whatever they could think of at each other. However, now that the two sides have something more concrete to fight over than market share, it seems they've decided to settle all of their intellectual property battles and simply focus on fighting over who gets to own Tele Atlas. Of course, as some people are beginning to notice, this may be a pointless battle, as both companies are going to face increasing competition from the mobile device arena -- especially from the likes of Nokia who forced Garmin to bid for Tele Atlas after announcing the acquisition of Tele Atlas competitor Navteq. So it really might not matter who wins the battle for Tele Atlas, as the market for standalone navigation devices may start to disappear.Thank you for reading this Techdirt post. With so many things competing for everyone’s attention these days, we really appreciate you giving us your time. We work hard every day to put quality content out there for our community.
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Filed Under: location based services, mobile phones, navigation, patents, settlements
Companies: garmin, tele atlas, tomtom
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Lets Have a Vote
If mobile phones follow the path of the IPhone (utilizing the entire face of the phone with a touch screen), usability increases very much. Will the market demand for navigation systems to have large enough displays s.t. mobile phones will either be too bulky for every day use or too small for navigation? What are everyones' opinions?
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Re: Lets Have a Vote
Not I. In fact I think the Google Directions at gas stations are likely to impact the Personal Navigation devices more than the crappy GPS phone systems they have now.
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Re: Re: Lets Have a Vote
Nice part is it works anywhere, even without cell coverage.
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I use my phone for a phone
I can barely read the items contained on my phone so if technology wants to keep adding features, it better make the display bigger without making the phone the size of a brick.
GPS is great, but not if I can't see or use it on a small screen or if it causes a device that can't easily fit in my top shirt pocket.
How many features can you cram in a mobile phone size?
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My point: the lines are real blurry right now.
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Bunch crooks if you ask me anyway...
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Re: Bunch crooks if you ask me anyway...
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Not so narrowly focused
Also, Garmin makes other devices where the GPS portion is just one facet of the device. I believe that as more melding and merging of these devices occurs, it will be the software and data that will become the true differentiators. That is why the acquisition of Tele Atlas is so important.
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new maps
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Phones With Nav Are A Threat
But thousands of people are not like you and me and will never shell out $200 - $1000 for a dedicated device. They just can't get over the threshold. For these people, phone-based plans at $3 a route, or $10/mo might be palpable.
If you think that won't happen, then take a look at what has become Verizon's biggest revenue earner among ALL of their GetItNow BREW downloads. It's the monthly subscription to VZNav, only available for about a year. This is responsible for about HALF of their GetItNow revenue. You'd be nuts not to agree that this is promising to phone and carrier, and threatening to TomTom, Magellan, and Garmin.
Now think that Tom, Mag, and Gar have had their stock prices bid up and up over the past few years as the prices for dash-mount systems finally got into consumer territory. Some investors surely expected that they were winning the market from in-car systems, and would eventually be in every car. In 2007, most people don't use SatNav, but that really just means a big market opportunity for growth for someone. People used to think that Garmin, TomTom, Magellan, and lesser-known brands would be the ones to win that market, now they're not so sure.
By the way, I've heard lots of users of phone-based Nav talk about how great it is. I take them the same way I took AOL users saying how great the "Internet" is in 1997. The phone carrier serves that app to you the same way AOL sent you a disk in the mail. It's the easy way, but not the best. I'm thinking "Hey dude, take the training wheels off and go for a real GPS." The things I can do with my Garmin Streetpilot 2820 (with Bluetooth hands-free and FM traffic receiver) is so far beyond what that toy phone app does...and it actually *helps* me take calls in the car, not conflicts with voice calls in the car. But hey, that's me, an uber-geek. Most people just want the easy way.
Last point: why do we not sell phones for their real cost ($200 - 800) in the US, but instead the carriers subsidize them down to $0? It's because people would not buy a $200 device and then a $40/month service. The threshold price is too high. But with a $0 phone, people sign up in the millions to $50/mo plans. They still pay for the phone in the end, but there's a smaller barrier. Sound familiar to the phone/dash-mount GPS issue?
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