Today people were shocked to discover that the first turn-by-turn navi iPhone app to hit the iTunes App Store cost $US9.99—per month. Well, get used to it, because there are a lot more subscription apps coming.
Think about it: Carriers like Sprint, Verizon and AT&T regularly charge between $US8 and $US10 per month for GPS apps. Gokivo is just a made-for-iPhone version of Verizon’s not-so-great VZ Navigator. Why did you expect an updated and hopefully improved version of that would cost less?
TomTom, TeleNav and Navigon are all expected to be launching their own turn-by-turn navi apps for iPhone before the year is out, and it would be a shock to me if they went any less than $US10-per-month.
The question is, are they worth it?
Because we’re talking turn-by-turn navi apps, the numbers are easy to break down. Not only do we know what carriers charge already, but we know, for instance, that TomTom still lists its PDA software (supports Dell Axim, Sony Clie and Palm Zire, among other extinct devices) for $US99.95—without free map updates. At the same time, we know that even the cheapest decent portable navigators, like the Garmin Nuvi 250, cost $US128 on sale—also without free map updates.
These apps, by definition, don’t come with maps loaded into the phone—they download the most recent ones from a server which the software maker pays for the right to use on an ongoing basis. So add to that the cost of licensing instantly up-to-date (Nokia-owned) Navteq or (TomTom-owned) Tele Atlas map databases, and you see why no navi can just be a $US15 one-time app. As Gokivo’s creators, Networks In Motion, say on their blog:
It takes a lot of work and money to deliver all these features and functionality that’s included in a turn-by-turn navigation app; and unlike product with maps on the device, we are updating maps and search indexes constantly.
This is just one category, but there are many that will need higher pricing or persistent subscription fees to keep them going. This isn’t about The Man—Apple or AT&T or “Macho Man” Randy Savage. It’s about developers, and it’s rough for them when they want to distribute flagship software over a platform that’s used to distributing 99-cent iFarts. The transition must come. I hate to say it, but the iTunes App Store needs more advanced software, and if that means higher costs then, for the sake of the iPhone OS’s continued growth and viability, I say we get behind it.
This isn’t to say Networks In Motion unveiled the pricing strategy in the most graceful way. But what they did to was make the first move. I think everybody in the navigation category was hoping someone else would go first, and Gokivo drew the short straw.
Now come the next questions, like how many devices you can load the software onto. After all, if the download is $US100, and you put it on two iPhones, isn’t it more like $US50 each?
Lalala
June 21, 2009 at 12:17 AM
As if people needed ANOTHER reason to jailbreak.
Will they ever learn?
Report PermalinkPinballLes
June 21, 2009 at 7:26 AM
$10USD a month to subscribe to turn by turn navigation = $120USD / $150AUD a year.
I’ll stick with the UBD Street Directory, my brain for turn by turn navigation I think.
Report Permalinkmeinrosebud
June 21, 2009 at 9:14 AM
Hmmm, perhaps a paper-based street directory IS a good investment after all!
Report PermalinkCarl
June 22, 2009 at 12:46 AM
Depends how you look at it, $10/month is ok if you only use the app one month a year when you are on holidays. (assuming the subscription allows you to buy 1 month only). I know my way around my city, but not other cities when I go away. That beats paying $100 for the full app.
Report Permalinkklaw81
June 22, 2009 at 10:21 AM
The major problem is that subscription-based GPS isn’t good value for money. You don’t always need the most up-to-date maps to get around.
I’m happy to use 3 or 4 year old maps, because 98% of them will be correct. It’s very rare that you’ll come across an area where the road has changed dramatically in the past few years.
For me at least, a single one-off payment (even if it’s $99) would be a much better arrangement. This is the model used for other devices (PDA and PNA)and to my mind it’s a much more sensible option.
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