While it currently offers a navigation device that can be attached to its smart phones, it plans to offer an integrated device in its Nseries of phones early in 2007 that will offer navigation services based on the gate5 platform. In this way, it hopes to exploit the spiraling growth in demand for GPS devices that has seen soaring sales by suppliers such as Garmin Ltd and Tomtom International NV.
A Nokia official said the sector is so hot that it expects strong sales of both standalone and integrated devices. Anssi Vanjoki, Nokia’s EVP and general manager for multimedia said the personal navigation device market is in a rapid growth phase with the global market size expected to reach 15 million units in 2006 compared with 8 million units in 2005.
By integrating the maps and navigation capabilities into our devices, Nokia will participate in this growth, he said. Nokia Nseries multimedia computers offer people new ways to explore their world – navigation and maps enhance this journey and add to the overall experience.
Vanjoki said maps and navigation are natural elements to be offered in mobile devices but he conceded it hadn’t developed as fast as expected. By acquiring gate5 Nokia would be able to offer consumers the mobile location applications at an accelerated speed.
Privately held gate5, which claimed its revenue doubled last year, was founded in 1999, has approximately 70 employees, and said it supplies software to leading personal navigation device manufacturers around the world.
It said all applications are extendable with more than 5,000 city guides, travel guides, or services, and it will appeal to wireless operators as it offers the possibility of advertising revenue targeted at consumers close to specific locations.
Continuing a strategy of selling mobile application to competitors, Nokia said it will continue to support gate5 exisitng customers with a multi-platform strategy for mobile devices, including Symbian, Linux, Windows Mobile, Palm, and Java platforms.
San Jose, California-based SiRF Technology Inc offers chipsets small enough to give mobile phone GPS technology, and Nokia said it already has the GPS technology to exploit gate5 mapping software.
