Categories
Close
Menu
Menu
Close
Search
Search

Featured Articles

RSS
123

Opinion 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.

Recent Podcasts

ExclusiveJohan Lodenius of MediaTek talks about wearable devices, smartphone evolution and the importance of driving costs down

This year's Mobile World Congress was notable for the number of product launches by handset manufacturers. To get a better understanding of smartphone manufacturing, we spoke to Johan Lodenius of semiconductor company MediaTek.

He gave us a simple overview of how 'fabless' manufacturing works, discussed developments in smartphones and wearable devices, contemplated the end of the PC era and talked about the importance of driving costs down.

ExclusiveMobile payments, new smartphones, wearable devices, connected cars, CeBIT and David Cameron

This week's programme opens with a quick look at David Cameron's commitment to 5G technology and the Internet of Things, which was made in a speech at CeBIT.

Iain and Mark then move on to talk about the other big mobile news headlines from the past few days, including the forthcoming Paym m-payment service, new HTC and LG smartphones, the growth of Chinese handset manufacturers, wearable devices, in-car connectivity and damaged iPhones.

ExclusiveThe rise of OTT messaging and the future of SMS: we talk to Stacy Adams of mBlox

Messaging was very much on the agenda at Mobile World Congress this year, following Facebook's announcement that it was planning to acquire WhatsApp in a 19 billion dollar deal. So if the future for this type of internet-based 'over the top' messaging service looks good, what does this mean for SMS?

To find out more, we spoke to Stacy Adams of mBlox to learn what was happening in the messaging world, to find out how SMS is being integrated with mobile apps - and to discover some of the other ways SMS was being used by businesses today.

ExclusiveWe talk about 4G LTE coverage and device sensors with OpenSignal at Mobile World Congress

Even at Mobile World Congress, the relevance of the mobile network operator can sometimes be forgotten. So for a different perspective on this year's event, we spoke to Samuel Johnston from British mobile crowd-sourcing firm OpenSignal.

Samuel discussed the announcements from MWC14 and OpenSignal's latest report into 4G LTE coverage around the world, as well as giving us an exclusive insight into OpenSignal's next research subject.

RSS
First567810121314Last

Follow thefonecast.com

Archive Calendar

«May 2026»
MonTueWedThuFriSatSun
27282930123
45678910
11121314151617
18192021222324
25262728293031
1234567

Archive