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Last updated: Friday, July 10, 2009

The smartphone is already the Swiss Army knife of the digital age — a quick flick of the finger can transform it into a camcorder, Web browser, gaming device or music player. For many consumers, the iPhone from Apple and its competitors are versatile enough that they can get by without separate cameras and laptops. Now the smartphone is beginning to displace yet another stand-alone device — the GPS receiver — as a convenient way for drivers to get directions to unknown destinations. More than 40 percent of all smartphone owners use their mobile devices to get turn-by-turn directions, according to data from Compete, a Web analytics firm. For iPhone users, the figure is even higher, eclipsing 80 percent. High-end phones like the BlackBerry from Research in Motion and the new Palm Pre increasingly come equipped with features common in portable navigational devices, like spacious touch-sensitive screens, intuitive menu designs and improved audio capabilities. “The smartphone has made a lot of progress in the last year,” said Dominique Bonte, director of navigation research with ABI Research. “It gets very close to what people expect from the experience of the personal navigational device.” Sales of traditional GPS units from companies like TomTom, Garmin and Magellan, a unit of MiTAC International, have fallen sharply recently. During the first quarter, TomTom said it had shipped 29 percent fewer GPS units than in the same period in 2008. Garmin said unit sales fell 13 percent in the first quarter, compared with the previous year. Meanwhile, shipments of smartphones in North America are expected to grow by 25 percent this year, with more than 80 percent of them equipped with GPS, according to ABI Research. “It certainly gives personal navigation device makers a run for their money,” Mr. Bonte said. He said many users still preferred the overall experience of dedicated GPS…

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Smartphones Are Eclipsing GPS Devices

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