Hey Garmin, ya you, I’m talking to you
Posted by Chris Tippie
In keeping with my end of the world rant, let’s turn our paranoia to GPS manufacturers - Garmin and Magellan.
Premise: Google and Apple have it out for you. The only thing that is standing between you and the utter erosion of your handheld and portable business is the fact that the iPhone doesn’t have GPS capability. That is about to change. It is all but absolutely, positively confirmed that the upcoming 3G version of the iPhone will have GPS. Couple this with an open 3G SDK (which we can safely assume will lag the release date by some months) and you have the makings of a handheld GPS unit with a superior user interface- oh ya, it can also browse the web, play videos, play music, email and make phone calls. Consumers: If your iPhone can take the place of your handheld or portable GPS unit, why buy both?
I can think of a couple of reasons but they’re all niche: ruggedization and waterproofing.
Think for a second. Wrist GPS units are everywhere. You see them on walkers, bikers and runners. What else do you see? Yep, an iPod. Nary a health nut goes by without wires hanging from their ears. Again, I ask, why would you buy both when you already have it in your iPod?
“But Chris, this isn’t new. Smartphones have had GPS for years now and it isn’t the end of the world”. True, very true. However, there is a big difference between now and then - the GPS enabled smartphones were closed devices where the owner may have had to face additional charges to use the GPS functionality. Let’s face facts - compared to the iPhone interface, all other smartphone interfaces look like Soviet era rejects. Further, the GPS applications that the wireless carriers made available on their phones were afterthoughts or at best “also rans” in terms of functionality. They didn’t even compete with the likes of Garmin or Magellan.
Since the 3G iPhone is a relatively open platform we can expect feature rich GPS applications to be quickly developed or ported to the platform. Couple that with a great user interface on a device that does everything else and you have a Garmin or Magellan handheld killer. If you don’t buy that argument, lets extend it a bit to the release of Android enabled open devices. See, this isn’t so much a fan boy rant about the iPhone/Apple - this is more a rant about how the release of their SDK is just the first step towards truly open mobile devices and how they will reshape the industry in a heartbeat.
Now, to bring it all home with the Google slant. Recently, Google explained their bidding strategy for the completed new wireless spectrum auction - to drive the eventual auction price above the $4.6 billion reserve price that would cause open device and open application rules to kick in. Their strategy worked and the rules will be in effect for the new spectrum. Thus, we can expect plenty of GPS enabled open Android powered devices to hit the marketplace in the coming years. See, even Google is gunning for you GPS manufacturers.
What to do: All is not lost. Become a software company - now. Forget trying to compete against wireless device manufacturers. They have a head start and quite frankly are better than you. Focus on your strength - your software. You have the head start. You have the experience. You have the brand. Shift your efforts to focus on being the software that will power the GPS functionality of these open devices. That’s your victory strategy.
DISCLOSURE: Chris Tippie does not own an iPhone
Other posts by Chris Tippie
Tags: Android, Apple, Garmin, Google, GPS, iphone, Magellan, SDK