CES: Megellan and Google to partner for local mobile search

Rating: this increases the price of mobile search

I have written in depth and at length about the cost of mobile search and how its paramount to its success. But my analysis must be hammering on deaf ears.

Google and Megellan have partnered for local mobile search services. Megellan has announced a new range of navigation device which integrates Google Local Search.

The Megellan Maestro Elite 5340+GPRS sounds interesting. The inclusion of Google Local Search means that new business models and revenue streams from advertising can also be made by PND manufacturer Megellan.

The device will launch in March and retail price is expected to be USD 1300. This does not include data charges and is a subject to additional perhaps monthly fees.

From the press release
“As the GPS category begins to expand beyond basic navigation and into more versatile exploration uses, the personal navigation device will become a primary resource for drivers and travelers to search for and access real-time information, monitor traffic information about their specific routes, and transmit data between communications devices,” said Nelson Chan, president and CEO of Magellan.

What we think?
This is very expensive. It’s a late entrant into a busy market with all competitors and even Google already available on TomTom devices and Google’s competitors Microsoft and Yahoo! also battling for a slice of market with the likes of Garmin.

With the price of local search on mobile steadily decreasing, the PND market is in fear of missing the boat. Mobile device (phones) can already offer mobile search and navigation features and are already more affordable.

The convergence form of mobile device vs personal navigation device is getting tighter and at the end of the day, we are not convinced that the PND will survive as the mobile there might be 50 million PND’s vs 10 fold that number mobile devices.

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2. Google Maps local search, armed with GPS
3. CTIA: Garmin upgrades Mobile with new UI and Google Local Search
4. Local mobile search provider m-spatial launches Spacemark Inside
5. Yahoo! steps up the pace in India, Google offers local search via SMS