Categories
Close
Menu
Menu
Close
Search
Search

Featured Articles

Opinion

Why the Sat-Nav Application Model is Broken

Mark

Share:

Print

Rate article:

No rating
Rate this article:
No rating

James Rosewell writes:

Over the past 3 years TomTom and Garmin have started to morph from companies that sell physical devices into software companies providing applications to run on other people's mobile platforms. Navigon and Co-Pilot have skipped the physical device stage entirely and established themselves as reputable Sat-Nav application providers. Free services from Google and Nokia have enjoyed huge success providing basic Sat-Nav services to their customers. Sat-Nav as a mobile application is enjoying huge growth as the barriers to access are removed. There’s a solution for literally any budget.

Most Sat-Nav applications are now obtained through the Application Store used on the mobile phone. Navigon have gone so far as to remove access to their application via any other route. Application Stores are now the only choice. This move to a platform-specific sales model is a massive mistake.

Unlike the PC application market where Microsoft dominates and only two other choices remain in the form of Apple and Linux, the mobile phone market is considerably less mature. PC customers stick with what they know, it’s only recently that many Windows users have even considered a move to Apple. Linux remains for the geeks. However, mobile phones are replaced more frequently than PCs and there is more healthy competition. As a result, platforms can change very quickly. Over a six year period an individual may use 3 or 4 different handsets and platforms.

Tying anything but low value (sub £1 applications) to a specific mobile platform is madness. Consider a customer who purchases a Sat-Nav application on Windows Mobile and then 6 months later starts to use an Android mobile phone. They’ll need to purchase the Sat-Nav application again. They will perceive the Sat-Nav application vendor is charging them twice for the same application. Sat-Nav CFOs might be rubbing their hands at the thought of charging twice for the same application. However the customer has now been placed in a position where they can purchase any Sat-Nav application, and will at the point of decision have strong negative feelings towards the incumbent vendor. Perhaps they won’t bother purchasing at all and will use the free Sat-Nav application provided by their mobile phone supplier. In my view there’s a strong possibility they’ll lose the customer.

The business models of Sat-Nav vendors involve getting people in cars from A to B efficiently and easily. They solve arguments between couples when navigating on long journeys, and they generally de-stress people’s lives a little. By getting involved in the battle for mobile platform domination they’ve become pawns in a game they don’t need to play.

Far better to sell a licence key via the Application Store that can be used to activate the application once on any platform. It's a move that'll keep customers loyal - and will ultimately keep the CFO much happier.

Comments

Collapse Expand Comments (0)
You don't have permission to post comments.

Opinion Articles

ExclusiveA Sure Signal from Vodafone

Mark Bridge writes:

Today I've been using my mobile phone at home. For many people that’s not an unusual thing to do – but it is for me because, around here, coverage indoors isn’t particularly good. Downstairs it’s previously been non-existent. But this morning everything changed.

ExclusivePhysician uses cell phones to bring health care to the poor

Natalia Ardanza of voanews.com writes:

In Africa there is another use for mobile phones. Public Health workers in Kenya are now using mobile phones to gather health information from patients in remote areas and upload it to the internet for instant analysis at distant centers. And it is all happening thanks to Dr Joel Selanikio.

ExclusiveMaking dumb touchscreen phones was a smart move

Mark Bridge writes:

I remember a report from last year that said ‘non-smart’ touchscreen handsets – generally those without a popular operating system – would be bad news for mobile operators.

Conventional touchscreen smartphones tended to result in higher-than-average ARPU thanks to their early-adopting tech-loving users, their web-friendly browsers, their email programs, their app-friendly operating systems and their fast 3G connectivity. However, dumber touchscreen devices – those with a manufacturer’s own proprietary OS and perhaps a clumsier browser – could generate 23% less ARPU than smarter phones. So, if touchscreen dumbphones weren’t good for networks… and weren’t really good for consumers either… manufacturers wouldn’t really bother with them. Right?

Exclusive"Hello Nexus One" I say...

James Rosewell writes:

Mark’s been encouraging me to write an opinion piece on the Nexus One for the last few days and I’m finally putting fingers to keyboard to share my experiences. It’s taken so long because this phone has so many features. On a positive note I could go into details about the gorgeous screen, the Android Marketplace that will out-sell Apple’s over the next 18 months, the built-in satellite navigation service and the speedy processor that makes everything run smoothly in real time. Or on a less positive note, the touch screen keyboard that sucks (think carefully about this if you’re a heavy texter or emailer, it’s even worse than the original iPhone), the lack of ActiveSync for Calendars and Tasks, no support for WMA music files or the clunky zoom functions on the web browser.

However I’m going to focus on voice dictation. Nexus One is the first phone I’ve used with this feature.

ExclusiveThe Amazon Kindle prepares to fight the Apple iPhone and Tablet

Mark Bridge writes:

Here’s a curious thing. Firstly, Amazon creates the Kindle. It starts selling the Kindle in the USA with a mobile deal that lets users download electronic books and newspapers wherever they are. Then it starts selling the Kindle to us in the UK, although – hang on a moment – it’s not talking about a UK mobile deal. Instead it still seems to be ‘roaming’ from the AT&T network. Next comes the larger-screen Kindle DX – also roaming away when it reaches our shores. And now Amazon is talking about third-party downloadable applications for the Kindle. Yes, a mobile device with downloadable apps. Hold that thought; I’ll be returning to it.

RSS
First101102103104106108109110Last

Recent Podcasts

ExclusivePodcast from Mobile World Congress 2015

Mark Bridge learns about the mobile technology trends at Mobile World Congress 2015 by chatting to James Rosewell of 51Degrees, Dr Kevin Curran from the IEEE and Chris Millington of Doro.

They talk about wearable devices, wireless charging, mobile operating systems and much more... including some of their favourite products from the exhibition.

ExclusiveLooking back at February: from security scares to multiple MVNOs

We're taking a look back at the biggest mobile industry news stories from February 2015, including allegations that the UK's security service tried to breach SIM card security by hacking into one of the world's biggest SIM producers.

We also talk about the planned BT and EE merger, the creation of two new UK virtual networks, some acquisitions in the mobile payment arena and a new Ubuntu smartphone.

ExclusiveA month of mobile: O2 counts on 3, Microsoft counts to 10 and Apple counts its profits

We're back with a month of mobile industry news, including takeover talks and takeover rumours. O2 and Three are said to be discussing a merger... but is there any truth in the suggestions that BlackBerry could be up for grabs?

We also discuss Apple's record-breaking quarterly figures, the highlights of CES and the launch of Microsoft Windows 10, as well as saying farewell to the current version of Google Glass.

RSS
12345678910Last

Follow thefonecast.com

Archive Calendar

«May 2026»
MonTueWedThuFriSatSun
27282930123
45678910
11121314151617
18192021222324
25262728293031
1234567

Archive