It’s a sad truth that pure PND makers will sooner or later end-up being acquired by bigger companies looking to expand their services offering. I’ve been thinking which of the giants could be interested to grab Garmins and TomToms of the world, and here’s my list.
Before I start, let me mention few companies which most likely won’t end-up buying PND makers – Nokia and Google, since both of them have already invested heavily in their own mapping and navigation solutions. If in some case they do decide to take such a road, it will be to prevent other companies from doing so and to get contracts with car makers.
And now the companies that could acquire Garmin and TomTom (and other navigation services providers like Telmap).
1. Microsoft
The Redmond giant does have its own Bing Maps product but it is not as nearly as used as Google Maps. What’s more, just because they already own some technology, that doesn’t mean they won’t buy the user base — take Microsoft’s acquisition of Skype as an example.
Then there are the mention relationships with the car companies. We all know the Redmond boys want to put Windows in our cars and have already managed to convince Ford to embed SYNC into their vehicles. By getting all those contracts TomTom or Garmin have with car makers, they effectively get a foot in the door for further negotiations.
And let’s not forget Windows Phone which could use a solid navigation app. Now if Microsoft would be able to offer it free of charge, that would be something users would love and eventually adopt the platform (i.e. buy Windows Phone devices) in volumes. Of course Nokia wouldn’t like this because of their plans to port Ovi Maps to Windows Phone, but that’s another story.
2. Apple
Although it’s not exactly the company known for big acquisitions, Apple may be interested to expand its services offering by including navigation to the mix. Fans of the Cupertino-based company are known to adopt iServices and I see no reason that would change with Apple-branded navigation solution. As a matter of fact, Jobs & Co. may decide to bundle such a service with the iCloud and/or MobileMe, making for an even better offering.
And let’s not forget Apple’s iOS is now included in the Apple TV and Steve may decide to expand its reach into in-car computers, as well.
3. Samsung
The Korean giant may also want to expand into services to keep its margins and further differentiate itself from the rest of the pack. The idea would be to ship/sell smartphones and tablets with powerful built-in navigation app (which is not made by Google) and make money from premium services like real-time updates.
The car market could also be interesting to Samsung which electronics products are used across a number of industries.
4. HTC
Similarly to Samsung, HTC is also on the list though it may lack capital for such a big acquisition. Of course, it could raise an additional cash to structure the deal and eventually add powerful navigation into its HTC Sense suite. If you recall, they already offer location-based product called Footsteps.
5 & 6. ZTE and Huawei
Finally, we have the two Chinese telco companies, both of which are rich in cash and ambition to conquer the hearts and minds of Western consumers. However they are not exactly known for such moves (as far as I know), but things could change…
And that’s it. I haven’t mentioned Sony/Sony Ericsson cause I don’t see them acquiring a PND maker. Then again, a week ago I couldn’t imagine Google acquiring Motorola Mobility, so you never know… 😉