Google, not Cell Phones, Biggest Threat to Garmin
By Chip Hanlon | September 17, 2007 | 4:41 PM | 0 Comments
On Monday, Herb Greenberg wrote a piece over at Market Watch asking whether cell phones would eventually cause a competitive headache for GPS high-flyer Garmin (GRMN). I've been a fan of this stock and its equally-hot European competitor, Netherlands-listed Tom Tom, but I also wonder how long the run can last for these stocks.
My concern with these stocks, however, stems from a different competitor than Greenberg worries about: good ol' Google.
Just a couple weeks ago, I downloaded Google Maps--FREE-- for my blackberry and I now can't imagine ever needing to pay for a Magellan, TomTom or any other GPS system. The only thing the Google maps system lacks the vocal directions, but I don't happen to like that thing yapping at me, anyway (my wife and I have a TomTom-- in her car, of course!).
Other than that, Google Maps is much more user-friendly. If you're in a new city, it's easy to do a quick search for the nearest Starbucks, steak restaurant or whatever you're looking for; the friend who turned me onto this said he has found himself giving directions to local cabbies with the thing on many occassions, and I believe him.
And again: it's free, for crying out loud! Plus, it takes about 2 minutes to download right onto your handheld. It makes me a total cheerleader, I know (for the service, not Google stock necessarily), but if you have a blackberry you just have to try it: simply visit the following link from your handheld: http://www.google.com/glm
Bottom line: I suspect Herb Greenberg is right, that the headiest days for the GPS companies will soon come to a close. I just think the threat comes from somewhere else.
(Position disclosure: none).
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