Google upsets sat-nav market

BEIJING, October 29 (Xinhuanet) -- Google, the Internet search giant, is now branching out into satellite navigation devices according to a number of technology reports.

The move created a certain amount of panic in stock markets which saw shares in sat-nav manufacturers slump on the announcement. Shares in TomTom, based in The Netherlands, fell by more than 20 percent while Garmin, based in the U.S., saw its shares dip more than 17 percent in heavy trading.

Google's new Google Maps Navigation product will provide real-time, turn-by-turn directions directly within smartphones that are based on the new version of its Android software.

Featuring speech recognition, it represents a real threat to companies like Garmin and TomTom, which manufacture specialized hardware navigation devices.

Satellite navigation devices retail from around 100 U.S. dollars to more than 1000 dollars depending on features and areas covered. Google's application will be free in as much as it will come built-in to its Android phones.

Sat-nav companies may breath a small sigh of relief given that Google's product will initially be limited to driving directions in the U.S. But it will only be a matter of time before its device becomes a serious contender to existing products.

"Obviously, we like the price of free and consumers like that as well," the chief executive, Eric Schmidt, said, adding that expanding into a new market with new competitors was not a part of Google's motivation.

The new product utilizes Google products and technology, including Google's flagship Internet search, Google satellite images and Google Street View, for more realistic views of a route.