GPS maker under threat

Expensive and outdated maps, the factory lost navigation devices market for Smartphone applications, with information and routes in real time. One of them is the Waze, which functions as a social network Tim Nixon, COO of OnStar service from General Motors, knew something was wrong when he saw his children by removing the suction cup that was holding the GPS in the car. They intended to stick to their iPhones and secure them in the car to use Breeze for a free map and GPS.
This represented the denial of their father's life's work, which was to convince car buyers to pay $ 1,500 or more for a 9-inch navigation system, coupled to the Panel. Rather than berate their children, Nixon came up with an answer: the GM now offers a map application, for $ 50, for iPhones, which runs on the touchscreen of the Chevrolet Spark.
"We, historically, we have embedded navigation systems for cars," said Nixon. "It just won't be enough, on account of these devices that bring new information all the time," said Nixon.
As more people use smartphones, navigation systems in cars expensive and profitable of automakers are threatened. The reason is simple: many map applications are free, while integrated navigation systems cost from $ 500, and may exceed the figure of $ 2,000.
Until now, most automakers ' navigation systems was not connected to the web. Instead, they use the maps loaded on DVDs that work with global positioning satellites to chart a course. These maps are out of date quickly, especially in terms of points of interest, such as cafes and petrol stations, that open and close. Smartphone applications are more up to date, because they pull constantly new data from the Internet, through storage and other services known as cloud computing.
"If you want to update the maps of your car, is an expensive and complicated process, because the consumer has to go to the dealership," said John Canali, which accompanies the Strategy Analytics navigation business. Automakers have increased profits with navigation systems to group them in expensive optional packages, which include leather seats, sunroofs and high-end audio systems.
"It's a very lucrative, profitable option for the automakers," said Niall Berkery, CEO of Tele NAV. consumers, however, are not always satisfied. The biggest complaint is the difficulty of use. The maps application boom is pushing automakers to adapt to keep track of navigation, expanding market. The navigation systems in cars in the world must reach 32.7 million units in 2019, more than double of the 13.8 million this year, according to IHS Automotive.