TomTom iPhone Navigation Makes U.S. App Store Debut for $100
TomTom has officially launched their turn-by-turn GPS navigation system for both U.S. and Canada in the App Store for $99.99. On Sunday, four regional versions of TomTom's app popped up in the New Zealand App Store via iTunes …
Context & Ripple Effects
Turn-by-turn on the iPhone has existed only through the back door until now: in February 2009 Gizmodo covered voice-guided navigation arriving on jailbroken iPhones, proof of demand Apple's App Store couldn't yet serve legally. TomTom's $99.99 launch for the U.S. and Canada converts that demand into an official storefront product, and the rollout was broad enough to draw same-day pickups from Engadget, eWeek, and Recombu.
The pricing is the notable move: TomTom charges roughly what a dedicated personal navigation device costs for software alone, betting that map quality — including its user-correctable Map Share system, which it has been shipping since June 2007 — justifies hardware-level prices on a phone. A Sunday leak of four regional versions in New Zealand's App Store preceded the U.S. debut.
First-order effects
- iPhone 3G and 3GS owners gain legitimate, voice-prompted turn-by-turn navigation covering the U.S. and Canada for $99.99, ending the jailbreak-only workaround.
- TomTom now sells navigation on the very device class pressuring its core PND business, hedging cannibalization rather than fighting it.
Second-order effects
- Rival GPS vendors face a template decision: follow TomTom onto the App Store at premium prices or concede the iPhone to it, and every subsequent app listing resets consumer expectations for what map software costs.
- Apple's App Store becomes a distribution channel for full-priced navigation software, shifting value from the dashboard device to the handset and forcing accessory makers like TomTom to design around the phone instead of against it.
Third-order effects
- If buyers pay hardware prices for phone-based navigation, the dedicated PND's reason to exist erodes, and map vendors' revenue migrates from selling boxes to selling licensed software and updates per platform.
- Premium-priced official apps validate that carrier- and OEM-independent software can carry professional-grade features (voice guidance, live map correction), setting the stage for a price war whenever a free or cheap alternative enters the same store.
The trend: Navigation is migrating from dedicated GPS hardware into smartphone app stores, with incumbents like TomTom pricing high to defend map value before the market forces it down.