Garmin is trying to expand nonetheless by acquiring Navigon-a rival company. As announced on Tuesday, Garmin hopes the deal could be more helpful for its business in Europe, and give it greater momentum in mobile phone apps.
As the top maker of car navigation system, Garmin is hoping that the deal could extend the partnerships with phone and automakers to give it additional outlets market in Europe. Garmin has a 23 percent share of the navigation device market in Europe while Navigon’s share is 7 percent.
To be honest, selling devices is increasingly challenging these days because of the GPS system on mobile phone. Several years ago, there was only paper map, now the competitors are different apps for mobile and computer, even for cards, Garmin tried to play good card by have Navigon joining in the business.
“This acquisition is a great complement to Garmin’s existing automotive and mobile business,” Cliff Pemble, Garmin’s president said.
Back to the market, Navigon’s app for the United States costs $60, with two million users. That’s the reason why Navigon has been chosen.