Nokia Launches Free Navigation Services: TomTom shares take another dive

Fears that Nokia’s gratis offering could diminish the need for separate, turn-by-turn navigation devices, like those made by TomTom NV, hit the Dutch company’s shares, which were down 10% in afternoon trading in Amsterdam. Nokia’s shares, meanwhile, rose 1.4% in Helsinki. Until now, Nokia customers have had to pay for navigational services that work without Internet connectivity on their phones. The new offer allows customers to download maps of over 180 countries from Nokia’s Web site for free and includes features such as travel guides and new graphics, Nokia’s executive vice president for markets, Anssi Vanjoki, said in an interview.

TomTom’s shares have now dropped by 50% within six months. Losing 40% when Google bundled turn-by-turn navigation into android, and now Nokia has been forced to offer navigation for free to help sell more handsets (a shift from previous plans to generate revenue from services in a commodotised handset market). Is the dedicated GPS device going the way of the fax machine?

Posted via web from Simon’s posterous

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