iPhone leaves no room for navigation devices

iPhone may cannibalize sales of personal navigation devices, says analyst

Analysts believe new features in the iPhone 3.0 software upgrade may undercut sales of dedicated personal navigation devices.

"We might see more cannibalization of PNDs at the higher end of the market with devices that offer real time traffic and weather and two-way information," said Ross Rubin, analyst with the NPD Group. "Clearly the iPhone has an inherent advantage because it's a two-way device."

TomTom isn't risking being left out of this transition. The company is developing an iPhone application and an iPhone car kit, which will both be out this summer.

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Analysts believe new features in the iPhone 3.0 software upgrade may undercut sales of dedicated personal navigation devices.

"We might see more cannibalization of PNDs at the higher end of the market with devices that offer real time traffic and weather and two-way information," said Ross Rubin, analyst with the NPD Group. "Clearly the iPhone has an inherent advantage because it's a two-way device."

TomTom isn't risking being left out of this transition. The company is developing an iPhone application and an iPhone car kit, which will both be out this summer.

TomTom vice president of market development Tom Murray told the San Francisco Chronicle: "Naturally, some consumers will opt to use the iPhone for navigation exclusively. But as more consumers demand navigation and want to have that functionality in their smart phones, it only makes sense for TomTom to participate in this opportunity."