Google Steps Into Another Market: GPS for Phones

MOUNTAIN VIEW, Calif. — GPS navigation devices were the latest must-have tech toys just two years ago, and shares of device makers like Garmin and TomTom were soaring.

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A screenshot shows Google’s new mapping navigation.

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That didn’t last long. In a turnabout that has been remarkably swift even for the fast-moving technology business, those companies have suffered as competition has pulled down prices — and as more people have turned to their cellphones for directions.

In the latest blow to the business, Google announced a free navigation service for mobile phones on Wednesday that will offer turn-by-turn directions, live traffic updates and the ability to recognize voice commands. The service will initially be available on only one phone, the new Motorola Droid, but will be expanded to more phones soon.

In a briefing on Tuesday in advance of its announcement, Google said that the service might be supported by advertisements in the future. That would make driving directions the latest form of information to shift from being a paid service to one that is ad-supported.

“This is consistent with a certain pattern of Google, where they are able to build volume and usage of a product and then subsidize it with advertising,” said Greg Sterling, principal of Sterling Market Intelligent, a research firm. The losers, he said, were companies like TomTom and Garmin, along with the cellphone carriers, which offer navigation services by subscription.

Eric E. Schmidt, Google’s chief executive, said that he didn’t view the new service as hurting an industry. Instead, he said, it is a boon to consumers, made possible by the increasing power of smartphones and the growing ubiquity of Internet access.

“Obviously we like the price of free, because consumers like that as well,” he said.

But analysts say that if successful, Google’s service could chip away at sales of stand-alone GPS devices and the subscription services offered by cellphone carriers.

Sales growth for those devices is already slowing. In 2007, global shipments of stand-alone navigation devices grew a hefty 131 percent from the year before, according to data from the research firm In-Stat. But the firm predicts that shipments will grow just 19 percent this year from 2008, and a price war has hurt the industry’s profits.

“With a free alternative that is just as good, I don’t see much positive growth for the likes of TomTom, Navigon or Garmin,” said Dominique Bonte, director of navigation research at ABI Research. “If it’s free and a good service, why would you pay for something you can get for free?”

Google’s announcement also reflects a broader shift toward consolidation in the gadget world.

The smartphone is already the Swiss Army knife of the digital age, able to transform into a camera, music player or game machine at the swipe of a finger. Now it is increasingly a navigation device too.

Many people still prefer dedicated GPS devices, which tend to display maps faster since the data is typically stored in the device rather than downloaded over a wireless network. But the list of smartphone shortcomings is shrinking. Smartphone users can download applications that offer spoken directions and live traffic updates. And at $100 to $300 apiece, smartphones are competitively priced with GPS units, which average about $177, according to the research firm NPD Group.

By 2013, phone-based navigation systems, which are already more popular among younger smartphone owners, will dominate the market, according to a recent report from Forrester.

The makers of navigation devices have not ignored the spread of smartphones. But Google’s move could make it harder for them to adapt.

TomTom, based in Amsterdam, introduced a $100 navigation application for the iPhone in August. The company said the program had been downloaded close to 80,000 times. Garmin recently released the Nuvifone, a hybrid of a navigational device and a cellphone that has generally received poor reviews.

“Turn-by-turn navigation on a handset is what we’re been doing with the Nuvifone,” said Ted Gartner, a spokesman for Garmin, which declined to release sales figures for the phone. “Google’s announcement reaffirms that consumers want their smartphones to double as a navigation device.”

Julien Blin, principal analyst at JBB Industry, called Garmin’s phone a “desperate move,” adding: “The Nuvifone is around $300, and you can get an iPhone for a comparable amount that can now do the same thing.”

Shares of both TomTom and Garmin plummeted Wednesday after Google’s announcement. Garmin’s shares fell 16 percent to $31.45 on Nasdaq, while TomTom’s shares closed around 21 percent lower on the Amsterdam Stock Exchange.

Google’s navigation service, which for now works only in the United States, is part of a new version of Google Maps for Mobile, software that will work on the growing number of phones that run Google’s Android operating system. Google executives said they eventually hoped to offer the service on Apple’s iPhone and other mobile devices. But they said this would be up to those device makers. Apple and Google have clashed over Apple’s reluctance to approve an application that works with the Google Voice calling service.

As mobile services that involve location have become increasingly important, the underlying mapping data has become a valuable strategic asset. Google recently began creating its own digital maps in the United States, ending a contract with the map data provider TeleAtlas, which is owned by TomTom.

A year earlier, Google had chosen TeleAtlas to replace Navteq, a map data provider that Nokia acquired for $8.1 billion in 2007. Google and Nokia are rivals in mobile phone operating systems.

Cell phone restrictions on the way

Drivers caught with one hand on the wheel and the other punching in numbers on their cell phones will soon be dialing up trouble with the law.

And that’s a good thing, say some local Portage la Prairie area residents.

“It’s become an obsession,” said Dan Werbiski, while stopping at Portage Mall on Monday. “What I want to know is ‘Why’? Is it necessary to use the cell all the time?”

The provincial government announced on Sept. 21 new legislation is coming in the first part of 2010 placing a ban on hand-held cell phone use and cell phone texting while driving. To be permitted to use a cell phone, drivers need to avail themselves of a hands-free device.

Jim Stanley agrees using a hand-held cell phone or texting while driving is dangerous.

“Anyone driving and talking at the same time should be given a ticket,” said the Langruth resident.

service@cellphonesbox.com.

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Motorola is Goto Android Market?

Motorola has finally announced its bet-the-company Android handset. At GigaOM’s Mobilize 09 event in San Francisco this morning, Sanjay Jha, Motorola’s co-CEO and CEO of the company’s handset division, uncrated the CLIQ, a device it describes unremarkably as the “first phone with social skills.”

Why? Well, the CLIQ, or DEXT as it will be confusingly branded in the U.K., incorporates Motorola’s new “MotoBlur” service, which essentially corrals Facebook, MySpace, Twitter, Picasa, GMail and MS Exchange activity into a single feed and presents them on your phone.

In form, the CLIQ is a sideways slider. Like the Palm (PALM) Pre, the device boasts a full touchscreen and QWERTY keyboard. It’s got a 320 x 480-pixel, 3.1-inch HVGA screen and a five-megapixel camera. The CLIQ is video-capable (play, stream and capture) and supports the broad spectrum of media formats. It runs Android 1.5 (Cupcake), and Motorola (MOT) claims a battery life of six hours.

Jha says the phone is not intended to be a single iconic device–like, say, Apple’s (AAPL) iPhone. Rather, it is the first of a broad line of handsets, all running Android and Motoblur, that will be targeted at different customer segments around the world.

A wise strategy in the current market? Who knows? But at least it’s a step in the right direction. Motorola clearly needs to do something to right itself after the past few disastrous years. Hard to believe the company controlled 16.1 percent of the global handset market just two years ago. It’s market share today? A modest 6.5 percent. The CLIQ will be sold through T-Mobile in the United States.

The device’s spec sheet below; click to enlarge.

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Which Cell Phone Is Smartest for Business?

Many businesses depend on mobile phones that also browse the Web, send and receive e-mail, and use other applications. But how do you choose between not only BlackBerry and iPhone, but Google’s Android, Windows Mobile, Palm Pre and others?

Smartphones are big for small business. In fact, many mobile workers now depend on these all-in-one digital Swiss Army Knives that offer support for third-party applications, messaging, Web browsing, GPS navigation, media playback, and photo and video capture.

Oh, and they make calls, too.

But there are a growing number of different platforms on the market — including BlackBerry, iPhone, Android, Windows Mobile, Palm Pre and others — therefore deciding which one is best for your small or mid-sized business could be an overwhelming endeavor. So we turned to a couple of tech experts to discuss what a mobile worker should look for in a smartphone platform.

The basics

Smartphones are an increasingly popular choice for business use, but regardless which of which operating system you go with, the handset must meet a few key minimum requirements, says Scott Steinberg, publisher of Digital Trends.

“Battery life and wireless coverage are two big ones,” says Steinberg, who is based in Atlanta. “Because of all of its features and integrated wireless radios, smartphones can consume a lot of power, and the last thing you need is to be on the road or at a trade show and there’s only one bar left.”

As for coverage areas, which can greatly affect call quality and data speeds, Steinberg suggests to do your research by visiting the websites for carriers — such as Verizon, T-Mobile, AT&T and Sprint — and click on the map that shows coverage areas. “Many people assume the smartphone will work the same everywhere in the U.S., and elsewhere, but this is simply not the case,” he explains. “It’s also not a bad idea to talk to colleagues or friends on that network to hear first-hand about coverage, as the last thing you need is to be on the road and you can’t access your e-mail from client about a cancelled appointment.”

Ted Schadler, vice president and principal analyst at Forrester Research, a Cambridge, Mass.-based technology research firm, says before deciding which smartphone to invest in, figure out what applications your business requires and if they’re supported by the platform. “The horizontal app is e-mail, of course, but after that you’ll need to list any other apps you’ll want to run,” says Schadler.  A small or mid-sized business “will also work out the cost per device, how many you need for your staff, the cost of the data plan, and any device management software or mobile middleware you might need.”

Consider being device agnostic

Schadler, who has just published a report entitled Technology Populism Fuels Mobile Collaboration: When IT Supports Personal Mobile Phones, Mobile Collaboration Ensues, says the trend is moving towards a “bring your own smartphone” practice. In a survey completed by more than 2,300 IT decision-makers in the U.S. and Europe, one in four are now supporting an employee’s personal mobile device — so long as the applications are platform-agnostic and meets the company’s security protocols. The gotta-have-it iPhone from Apple is the “big disruptor” for this paradigm shift, says Schadler.

Deciding which smartphone platform to go, however, might be dependent on the industry you’re in, adds Schadler. If you’re in regulated industry — such as health care, pharmaceutical, insurance, or financial services — you might have strict privacy requirements, such as protecting customer data, remote wiping of device if the smartphone is lost or stolen, and so on. “There are many, many different kinds of policies in these industries so you have to be careful about which phones you’re supporting to ensure they meet regulatory compliance,” says Schadler.

“If you want managed devices, you really only have one choice, which is BlackBerry,” adds Schadler, “as RIM supports more than 450 policies — but it’ll cost you a license fee per month, per user.” He adds, “Otherwise, Windows Mobile and iPhone are basically free if you’re running Exchange.”

Steinberg agrees with Schadler on the additional requirements for any smartphone consideration. Your priorities should be “security and privacy issues must be addressed, support for enterprise-level e-mail, and whether or not you easily sync your data with a PC,” he says. “And depending on what you need, access to the company’s Twitter or Facebook account while on the road might be important or GPS to find your way to a meeting or wireless or on-demand software purchases at an app store.”

Pros and cons

The following are a few thoughts on each of the major smartphone operating systems:

• BlackBerry

Pros: Reliable, fast and secure “push” e-mail; physical keyboard in most models; good battery life; supports multiple accounts.

Cons: Browser not the greatest; App World doesn’t offer great selection or intuitive interface.

• Windows Mobile

Pros: Supported by the broadest range of devices; Outlook and other Windows programs sync smoothly with a PC.

Cons: Interface and stability issues; fewer apps than most other smartphones.

• iPhone

Pros: Elegant and intuitive touch interface; more than 65,000 apps in App Store (many of which are free); great consumer device.

Cons: No physical keyboard is obstacle for many; battery life trails other smartphones; still no MMS support in U.S.

• Android

Pros: Powerful and versatile open-source operating system; seamless presentation and access of online Google apps; good user-interface.

Cons: Not a lot of supported devices or software; Android Market not as intuitive as Apple App Store.

• Palm webOS

Pros: Open-source operating system anyone can develop for; can support multiple apps open at once; offers both physical keyboard and touchscreen.

Cons: Unproven for business because newest OS; poor selection of software and only one device (Palm Pre).