Navigation and Location 2007 USA – Section 3 Business Models

by Eric / December 4th, 2007

Navigation and Location 2007 USA Conference

Moderator:
Phil Magney, President, Principal Analyst, Telematics Research Group
Panelists:
Steve Andler, VP Marketing, Networks in Motion
Kal Mos, Engineering Director, Consumer Electronics Integration and Connected Audio and Video, Mercedes-Benz Research & Development, North America, Inc.
Kiyoshi Hamal, Senior Director Sales & Marketing, Mio Technology USA

Agenda
Can factory installed navigation systems keep up with cell phones and PNDs?

Find out if factory installed, pay-up-front applications have a place in todayâ€™s market
In the face of huge competition, learn how updated, accurate, high quality data delivery is being developed to keep customers happy
Does partnering with traffic providers, to offer â€˜lifetime freeâ€™ data, make in-dash navigation systems attractive enough to customers â€“ and what should the price tag be?
Hear about new content bundles that can increase the value of pay-up-front applications

Factory-installed navigation systems in cars have a nice place for consumers. The integrated, large screen and most have voice-directed turn-by-turn directions. Part of the issue becomes the ability to support dynamic conditions such as traffic as well as frequently changing data (points of interest, new roads and routes, etc). With prices this year at the $100 price target, these devices have hit mass market afford ability without needed the more expensive in-dash option, even when looking for a new car.The panel was boasting about how the PND market will hit 7M+ units in the US in 2007, which represents a rampant growth of 100%. Meanwhile, there are over 200M mobile subscribers in the US as the end of 2007 draws near, with roughly 17% of the devices being location enabled*. Hmmm, at 34M mobile phones with navigation features, that’s 5x the number of units! And in 2008, 40% of the phones sold will have A-GPS â€” 80M devices. Added to the pressure is the recent Nokia acquisition of Navteq, announcements from Google about improving Google Maps for Mobile and others that really start to encroach on a booming space.

That should be a strong wake up call phones are out pacing PNDs for navigation by a potential 10x rate. PND OEMs might want to focus on other assets like their partnerships, the user experience, and their existing customer base to look for other strategies and avenues of growth. With other entrants like Apple and Google flexing their muscle into the mobile and navigation “ring” the simple cachÃ© of those companies can weigh into landing deals that maybe out of reach for a Magellan or Garmin.*Gartner stats shared at the conference.